Volvo Treasury announces potential market stabilization for new EUR bonds

Published 09/05/2025, 09:22
Volvo Treasury announces potential market stabilization for new EUR bonds

FRANKFURT - Deutsche Bank AG (ETR:DBKGn), acting as the Stabilisation Coordinator, has announced the possibility of market stabilization activities related to the issuance of a new 5-year Euro-denominated bond by Volvo (OTC:VLVLY) Treasury AB. The bond issuance, guaranteed by AB Volvo (publ), has yet to disclose its aggregate nominal amount and issue price, which are indicated to be in the area of mid-swaps plus 120 basis points.

The stabilization period, which is a common practice intended to support the market price of a security after its initial offering, is expected to commence today and may continue until June 27, 2025. During this time, Stabilising Managers, including BofA Securities, Crédit Agricole CIB, Deutsche Bank, and Nordea, may over-allot or undertake transactions to maintain the bond’s price.

It is important to note that such stabilization actions, while permissible under EU and UK regulations, are not guaranteed to take place and can be halted at any time. The specific trading venue for the stabilization has not been disclosed.

This pre-stabilisation period notification is primarily directed at professional investors and high net worth individuals in the UK, as well as qualified investors within the European Economic Area (EEA) and the UK, in accordance with the respective financial regulations.

The announcement clarifies that this bond offer is not intended for the United States market, as the securities have not been registered under the US Securities Act of 1933 and cannot be offered or sold without registration or an exemption from registration in the US.

The information is based on a press release statement and is intended for informational purposes only, not constituting an offer to underwrite or acquire any securities of the issuer.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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