Clifford Chance advised Volkswagen Aktiengesellschaft in connection with the placement of two issues of undated subordinated notes subject to interest rate reset, consisting of EUR 1.25 billion of notes with a first call date in 2018 (NC5 Notes) and EUR 750 million of notes with a first call date in 2023 (NC10 Notes).
The NC5 Notes and NC10 Notes were issued by Volkswagen International Finance N.V. with a subordinated guarantee by Volkswagen Aktiengesellschaft. The notes are expected to receive 50% equity treatment by rating agencies Standard & Poor’s and Moody’s and to strengthen both the net liquidity position and the capital base of Volkswagen Aktiengesellschaft.
The notes were offered in private placements to institutional investors in Germany and other countries, excluding the United States of America, and have been admitted to the Official List of the Luxembourg Stock Exchange.
Citigroup Global Markets Limited, Commerzbank Aktiengesellschaft, Goldman Sachs International and Merrill Lynch International acted as joint bookrunners for the offering.
The Clifford Chance team consisted of partners Dr. George Hacket (Banking & Capital Markets, Frankfurt), Dr. Wolfgang Richter (Corporate, Frankfurt) and Dr. Uwe Schimmelschmidt (Tax, Frankfurt), counsel David Detweiler, senior associates Dr. Felix Biedermann and Dr. Axel Wittmann, as well as partner Frank Graaf, counsel Jurgen van der Meer and associate Moussa Louizi (all Capital Markets, Amsterdam).
