Russian roubles

  • 21 May 1998
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* Volkswagen Financial Services NV

Guarantor: Volkswagen Financial Services AG

Rating: A1/A+

Amount: $40m

Maturity: May 21, 1999

Issue price: 100

Fixed re-offer price: 100

Coupon: 42% (single coupon payment paid at maturity linked to Rb/$ exchange rate. Initial fix of Rb6.150/$)

Launched: Wednesday May 20

Sole lead mgr: Chase Manhattan

Bookrunner's comment:

This issue matched a dollar funding requirement for Volkswagen with investor demand for a dollar denominated instrument giving exposure to the foreign exchange performance of the rouble versus the dollar. On the basis of Chase forecasts that the rouble will depreciate by 6%-8% on an annualised basis, this deal should offer a return of 30.5%-33.5%.

We've already seen significant client interest in the deal because of the efficiency of the structure: it gives access to the high yields associated with the rouble without any of the custody, clearing and settlement hassles of the Russian government bond market.

Also, the launch of this issue coincided with a rally in the Russian bond markets as the country benefits from increasing investor confidence that Russia has disassociated itself from the problems in Asia. Consequently this issue has traded up strongly to 102.5 on the re-offer side.

We've seen interest from private banks, corporate treasuries and dedicated emerging market funds; geographically, there has been demand from across Europe as well as from offshore US accounts. On the back of the enquiries we've received to date we expect to be flat on the deal in the next day or so.

  • 21 May 1998

All International Bonds

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 JPMorgan 92.59 388 8.96%
2 Citi 85.30 278 8.25%
3 BofA Securities 63.15 265 6.11%
4 Barclays 58.01 223 5.61%
5 Deutsche Bank 55.74 184 5.39%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 BNP Paribas 60.87 123 14.06%
2 Credit Agricole CIB 28.59 93 6.60%
3 Santander 25.41 90 5.87%
4 JPMorgan 23.88 61 5.52%
5 UniCredit 21.51 103 4.97%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 Goldman Sachs 2.07 11 10.42%
2 BofA Securities 1.40 6 7.01%
3 Citi 1.37 7 6.87%
4 Morgan Stanley 1.36 6 6.85%
5 JPMorgan 1.31 7 6.59%