Volkswagen's Proposed Hybrid Securities Rated 'BBB-' And Assigned Intermediate Equity Content

FRANKFURT (S&P Global Ratings) May 12, 2025--S&P Global Ratings today said that it assigned its ?BBB-? long-term issue rating to the proposed two tranches of five-and-a-half-year noncall and eight-and-a-half-year noncall, perpetual, optionally deferrable, and subordinated hybrid notes to be issued by Volkswagen International Finance N.V. The proposed notes will be guaranteed by the parent company, Germany-based automaker Volkswagen AG (VW; BBB+/Stable/A-2) on a subordinated basis. The completion and size of the transaction will be subject to market conditions, but we anticipate total issuance of at least €1.9 billion. VW plans to use the proceeds to partially replace its outstanding €1.5 billion hybrid instrument, which has a first call date in June 2025, and fully replace its outstanding €1.75 billion hybrid

...May 12, 2025 FRANKFURT (S&P Global Ratings) May 12, 2025--S&P Global Ratings today said that it assigned its `###-' long-term issue rating to the proposed two tranches of five-and-a-half-year noncall and eight-and-a-half-year noncall, perpetual, optionally deferrable, and subordinated hybrid notes to be issued by Volkswagen International Finance N.V. The proposed notes will be guaranteed by the parent company, Germany-based automaker Volkswagen AG (VW; ###+/Stable/A-2) on a subordinated basis. The completion and size of the transaction will be subject to market conditions, but we anticipate total issuance of at least 1.9 billion. VW plans to use the proceeds to partially replace its outstanding 1.5 billion hybrid instrument, which has a first call date in June 2025, and fully replace its outstanding 1.75 billion hybrid instrument with a call date in March 2026. We will regard these instruments as having no equity content upon completion of the new transaction, compared with intermediate...

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