Nov. 13 (Bloomberg) -- Volkswagen AG issued $2.6 billion of debt in a four-part offering that includes fixed- and floating-rate notes.
The car manufacturer with $12.6 billion of bonds maturing next year sold $150 million of 18-month notes to yield 50 basis points more than the London interbank offered rate and $950 million of two-year notes to yield 60 basis points more than the benchmark, according to data compiled by Bloomberg. The 18-month portion was added after the deal was initially marketed earlier today, according to a person familiar with the transaction.
The company also issued $850 million of 1.15 percent, three-year bonds to yield 85 basis points more than similar-maturity Treasuries and $650 million of 1.6 percent, five-year securities at a relative yield of 105 basis points, Bloomberg data show.
The debt was issued through the Wolfsburg, Germany-based company’s Volkswagen International Finance unit and may be rated A3 by Moody’s Investors Service, said the person, who asked not to be identified citing lack of authorization to speak publicly. Proceeds will be used for general corporate purposes.
Libor is the rate banks say they can borrow in dollars from each other.
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