|
Car
sales in Russia, where Volkswagen (VW) last year opened a new
engine plant, plunged 36 percent in 2015, in an economy hit by
lower oil prices and Western sanctions over the Ukraine crisis.
Volkswagen Financial Services, which handles dealer and customer
financing and the German group's banking and leasing business,
said the rouble-denominated bond placed with investors had a
five-year maturity and a 9.95-percent coupon.
"Despite the tense situation in Russia and related challenges,
we are firmly committed to our engagement there," Frank Fiedler,
the VW division's finance chief, said.
Rated BBB+ by Fitch Ratings and BB+ by Standard & Poor's, the
bond is VW's first in Russia since two separate 5 billion-rubles
placements in October 2014 and its fourth bond in the country to
date, a spokesman said.
The operations of Braunschweig-based Volkswagen Financial
Services exclude the Scania and Porsche brands and the Porsche
Holding Salzburg distributor.
Europe's largest automaker built nearly 100,000 cars at its
plant in Kaluga last year and has not scaled back operations in
Russia, unlike rivals including General Motors <GM.N> which in
2015 idled an Opel factory in response to slumping demand.
"Russia has the potential to grow into one of the largest
automotive markets in the world," VW said in its 2015 annual
report published in April. "The market remains of strategic
importance for the VW group which is why we are working
intensively there."
(Reporting by Andreas Cremer; Editing by Mark Potter)
[© 2016 Thomson Reuters. All rights
reserved.] Copyright 2016 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
