Braunschweig/Peking,8May2017. Volkswagen Financial Services have issued a bond in renminbi (RMB) for the second time and fully placed it with Chinese investors. The volume of the security issued by Volkswagen Finance (China) Co., Ltd., a wholly owned subsidiary of Volkswagen Financial Services AG, amounts to four billion renminbi, or approximately 534 million euros. The transaction is therefore the largest single tranche bond by an Auto-Finance-Company in renminbi so far. The bond, which was placed in a bookbuilding process, has a term of three years and a coupon of 5.20 percent per year.

　　·        Largest single tranche bond by anAuto-Finance-Company in renminbi so far

　　·        Contract portfolio in China at a record level

　　“Our second bond issue in China is an important step in intensifying our Chinese capital market activities," says Bernd Bode, Head of Group Treasury and Investor Relations at Volkswagen Financial Services AG. He goes on to explain: "It is our intention to refinance our growth in China locally within that country and in a diversified manner. That is why we are active on the Chinese financial market both with our financial bonds and with our ABS pro-gramme as well."

　　During the last few years Volkswagen Finance (China) has been able to steadily expand its financing business and achieved a new record level at the end of last year with a portfolio of more than 860,000 current contracts, which is 31% more than at the end of the previous year.

　　The most important components worldwide in the strategic refinancing mix of Volkswagen Financial Services are unsecured capital market issues, deposits from the direct banking business, and asset-backed securities. The funding volume generated worldwide through unsecured capital market instruments amounted to EUR 27.6 billion last year and thus con-tributed around 16 percent towards the refinancing of Volkswagen Financial Services.

The bond at a glance:

　　·         Issuer: Volkswagen Finance (China) Co., Ltd.

　　·         Volume: RMB 4 bn

　　·         Issuer credit rating: AA+ (China Lianhe Credit Rating)

　　·         Issue rating: AA+ (China Lianhe Credit Rating)

　　·         Term: 3 years

　　·         Issuing price: 100.00

　　·         Coupon: 5.20 %

　　·         Trade: China Interbank Bond Market

　　The bond was marketed by a banking consortium comprising CITIC Securities and the China Construction Bank.

　　Volkswagen Financial Servicesare a business division of the Volkswagen AG group of companies and comprise as at 31.12.2016 Volkswagen Financial Services AG along with its associated companies and the financial services companies in the USA, Canada, and Spain that belong directly or indirectly to Volkswagen AG–with the exception of the financial ser-vices of the Scania and Porsche brands and Porsche Holding Salzburg. The key business fields embrace dealer and customer financing, leasing, the bank and insurance business, fleet management and mobility offers. Volkswagen Financial Services have a total of 15,324 employees worldwide–including 6,503 alone in Germany. Volkswagen Financial Services report total assets for of around EUR 170.1 billion, an operating result of EUR 2.1 billion eu-ros and a portfolio of around 18.2 million current contracts (as at: 31.12.2016).　

　　Volkswagen Finance (China) Co., Ltd.andVolkswagen New Mobility Services Investment Co., Ltd (Volkswagen Financial Services China)is a wholly-owned subsidiary of Volkswagen Financial Services AG. It is also the first wholly foreign-owned professional automobile financial service company in China. Since its inception in 2004, VWFS China currently has more than 900 employees nationwide. Volkswagen Financial Services China established close collaboration with SAIC Volkswagen, FAW–Volkswagen and Volkswagen Group Import (China), providing innovative financial services to Volkswagen Group brands, covering Volkswagen, Audi, Skoda, Porsche, Scania, SEAT, Lamborghini and MAN. Business lines cover areas of new car and used car retail finance, wholesales finance, aftersales services, extended warranty, financial leasing etc.