Volkswagen AG, Europe’s largest automaker, raised $2.15 billion in its largest sale of dollar-denominated bonds in a year. The maker sold fixed- and floating-rate debt due from 2015 to 2018 in four parts.
The offering, the company’s largest in the U.S. since it raised $2.6 billion a year ago, is expected to be rated A3 by Moody’s Investors Service, according to a person with knowledge of the transaction who asked not to be identified citing lack of authorization to speak publicly.
Volkswagen issued $500 million each of 1.125 percent, three-year debt to yield 55 basis points more than similar-maturity Treasuries and 2.125 percent, five-year bonds at a relative yield of 75 basis points. It also sold $750 million of three-year, floating-rate securities to yield 44 basis points more than the three-month London interbank offered rate and $400 million of two-year, floating-rate notes at a 33 basis-point spread.
The Wolfsburg, Germany-based company offered the notes through its Volkswagen International Finance NV unit, while Deutsche Bank AG, Morgan Stanley, and Royal Bank of Canada managed the sale.