FRANKFURT: Volkswagen will sell up to 1.2 billion euros ($1.6 billion) in bonds that will be converted into shares to bolster its car finance arm, the second such issue in seven months.
"Proceeds will be used to strengthen the capital base of Volkswagen and to finance further growth - also in the Financial Services Division," the German carmaker said on Tuesday.
The new mandatory convertible notes come on top of a similar issue VW placed in November last year.
They have a coupon of 5.5 per cent and will be offered at an issue price of 105.64 per cent of their principal amount, it added.
Upon maturity on Nov. 9, 2015, the notes will be converted into preferred shares without voting rights from Volkswagen's existing conditional capital.
VW investor Qatar Holding LLC has agreed to buy new mandatory convertible notes, VW said, without specifying the amount.
JP Morgan will act as bookrunner of the transaction.
indiatimes.com
"Proceeds will be used to strengthen the capital base of Volkswagen and to finance further growth - also in the Financial Services Division," the German carmaker said on Tuesday.
The new mandatory convertible notes come on top of a similar issue VW placed in November last year.
They have a coupon of 5.5 per cent and will be offered at an issue price of 105.64 per cent of their principal amount, it added.
Upon maturity on Nov. 9, 2015, the notes will be converted into preferred shares without voting rights from Volkswagen's existing conditional capital.
VW investor Qatar Holding LLC has agreed to buy new mandatory convertible notes, VW said, without specifying the amount.
JP Morgan will act as bookrunner of the transaction.
indiatimes.com
No comments:
Post a Comment