Clifford Chance advises Volkswagen on dual tranche RMB3 billion Panda bond issue under its DFI Programme

Global law firm Clifford Chance has advised leading automotive manufacturing company Volkswagen Group on its fourth Panda bond issuance under its Debt Financing Instruments Issuance Programme in the People’s Republic of China (PRC). The bond was split in two tranches with a total volume of RMB3 billion. The bond was issued by Volkswagen International Finance N.V. and is guaranteed by Volkswagen Aktiengesellschaft. Panda bonds are renminbi-denominated bonds issued by an issuer having its registered seat outside of the PRC.

The bond, which was underwritten by Bank of China Limited, CITC Securities Company Limited, HSBC Bank (China) Company Limited and Industrial and Commercial Bank of China Limited, was sold to institutional investors. Tranche one amounted to RMB2 billion with a term of two years, while tranche two amounted to RMB1 billion and has a term of three years.

Clifford Chance frequently advises corporate and financial institution issuers and bank syndicates in connection with national and international capital market transactions in debt capital markets and has advised Volkswagen Group on both establishments of their DFI Programme as well as the first three Panda bond issuances.

The international Clifford Chance team was led by partner Cristina Freudenberger and comprised transaction lawyer Felicitas Fischer (both Capital Markets, Frankfurt), as well as partner Jurgen van der Meer, senior associate Marina Sarkisjan and associate Kris Soomers (all Capital Markets, Amsterdam), partner Angela Chan, counsel Torrance Shi and associate Michael Cheng (all Capital Markets, Hong Kong).

Fangda Partners advised Volkswagen on PRC law. The team was led by Helen Zhao and included Howie Jiang and Ariel Fan.