VW to launch first euro-denominated bond since emissions scandal

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Volkswagen is set to return to European bond markets for the first time since the emissions scandal broke in 2015.

The world’s largest car maker is expected to launch at least €2bn of benchmark bonds across a range of tranches tomorrow.

The German company is traditionally one of the biggest issuers of corporate bonds in Europe, but has not accessed major bond markets since August 2015.

In May last year, it raised €270m from a renminbi corporate bond in China.

Volkswagen has relied more heavily on securitisation – where loans and leases are packaged up and sold on to the markets – as a source of funding.

Bankers suggested the market backdrop for corporate credit is currently positive, pointing to the results of the Dutch elections, in which anti-establishment candidate Geert Wilders failed to make significant gains.

European corporate credit has also been supported by purchases from the European Central Bank, which this week reached €72bn.

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