It will be the second issuance, since November of last year. The German automobile company stated, "Proceeds will be used to strengthen the capital base of Volkswagen and to finance further growth - also in the Financial Services Division." The bonds will be issued at the price of 105.64 % of their principal amount. The bonds will have a coupon of 5.5 percent.
The bonds will mature on 9th of November in 2015. The notes will be converted in to preferred shares. Those shares will have no voting rights in Volkwagen's conditional capital.
Its investor Qatar Holding LLC already purchased the new mandatory convertible notes, which expressed its agreement. The total amount purchased by of the latter was not disclosed, by sources.
The book runner for the transaction will be J.P Morgan. Volkswagen aims to overtake GM and Toyota, to be the world's leading automaker by 2018.
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