VW Bank completes €1.5 billion dual-tranche green bond offering

Published 19/06/2025, 07:40
© Reuters.

FRANKFURT - Volkswagen (ETR:VOWG_p) Bank GmbH has finalized a €1.5 billion green bond offering consisting of two tranches, according to a post-stabilization notice issued Thursday.

The dual-tranche offering comprises €800 million in green senior preferred notes due June 19, 2028, with a 2.75% coupon rate, and €700 million in green senior preferred notes due June 19, 2031, with a 3.50% coupon rate.

The bonds were issued under Volkswagen Bank’s Debt Issuance Programme dated September 25, 2024, with supplements added on November 11, 2024, and March 28, 2025.

Commerzbank AG (OTC:CRZBY) served as the stabilization coordinator for the offering, while ABN AMRO (AS:ABNd) Bank N.V., Banco Santander (BME:SAN), and RBC Capital Markets acted as stabilization managers. According to the notice, no stabilization activities were undertaken by the managers in relation to the securities.

The green bonds carry the International Securities Identification Numbers (ISINs) XS3099828355 for the 2028 notes and XS3099830419 for the 2031 notes.

This issuance represents part of Volkswagen Bank’s green financing initiatives, with the proceeds typically allocated to environmentally sustainable projects, though specific use of funds was not detailed in the statement.

The information was disclosed in a post-stabilization notice released by Commerzbank (ETR:CBKG).

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