Volkswagen was compelled to shift its funding strategy last year in the wake of an emissions cheating scandal. It stepped up issuance of asset-backeds, which were less impacted by the fallout than the company’s stocks and unsecured debt.
Now that investor confidence has been restored, Volkswagen is returning to its traditional funding pattern. In June, it issued €3.5 billion of hybrid unsecured bonds for the first time in 18 months. “The highly successful placement is evidence of our good standing on the capital market, despite a longer pause in our issuance,” Frank Fiedler, CFO of Volkswagen Financial Services, said in a statement issued when the transaction closed.