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 2021 (NC7 Notes) and EUR 1.75 billion of notes with a first call date in 2026 (NC12 Notes).

The NC7 Notes and NC12 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.

Barclays Bank PLC, Goldman Sachs International, HSBC Bank plc and Société Générale acted as joint bookrunners for the offering.

The Clifford Chance team consisted of partners Dr. George Hacket (Banking & Capital Markets, Frankfurt) and Dr. Wolfgang Richter (Corporate, Frankfurt), counsel David Detweiler, senior associate Dr. Axel Wittmann and associate Ryan Dunmire (all Capital Markets, Frankfurt) as well as partner Frank Graaf, counsel Jurgen van der Meer and associates Moussa Louizi and Trevor Stegeman (all Capital Markets, Amsterdam).