Volkswagen's short sterling note twice covered

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By Alex Radford
22 Aug 2019

Volkswagen Financial Services printed a £300m 3.25 year bond on Thursday that was twice oversubscribed. It has not been long since the A3/BBB+ rated German carmaker came to the sterling market. Only last month it sold a £350m three year note.

Bookrunners Lloyds Bank and RBC Capital Markets announced Thursday's deal as a benchmark at initial price thoughts of 140bp over mid-Gilts.

With about £800m of orders in the book, the leads gave guidance of a £300m-£400m deal at 125bp-130bp.

“It looks pretty aggressively priced,” said a banker away from the ...

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