The company has issued four bonds with terms of up to ten years. It has issued a total of €8bn with €1.5bn each and terms of four and six years and a €2.5bn bond with a term of two years. The 10-year, €2.5bn benchmark bond carries a coupon of 1.875% and was issued at 98.9%, i.e. its yield is just below 2%. As the risk-free rate is currently in the vicinity of 0.6% the company debt spread is 140bp, which we had included in our DCF model. Finally, another €2.5bn with a term of two years was issued ....
30 Mar 2017
VW has priced its bond issues
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VW has priced its bond issues
The company has issued four bonds with terms of up to ten years. It has issued a total of €8bn with €1.5bn each and terms of four and six years and a €2.5bn bond with a term of two years. The 10-year, €2.5bn benchmark bond carries a coupon of 1.875% and was issued at 98.9%, i.e. its yield is just below 2%. As the risk-free rate is currently in the vicinity of 0.6% the company debt spread is 140bp, which we had included in our DCF model. Finally, another €2.5bn with a term of two years was issued ....