Global law firm Clifford Chance has advised leading automotive manufacturing company Volkswagen on the establishment of its Renminbi 50 billion Debt Financing Instruments Issuance Programme and the registration of the programme with the National Association of Financial Market Institutional Investors (NAFMII) in the People’s Republic of China (PRC).

Further, Clifford Chance advised Volkswagen on the successful issuance of its first Panda bond with a volume of Renminbi 1.5 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 China Construction Bank and HSBC, was sold to institutional investors and has a term of two years and an annual fixed coupon of 3.05 per cent.

Clifford Chance frequently advises corporate and financial institution issuers and bank syndicates in connection with national and international capital market transactions in the area of debt capital markets.

The international Clifford Chance advisory team for Volkswagen comprised partners Sebastian Maerker and George Hacket, senior associates Wolfgang Ettengruber and Andrei Manea, senior transaction lawyer Steffen Braun and transaction lawyer Marlen Klepsch (all Capital Markets, Frankfurt), partner Olaf Mertgen (Tax, Frankfurt), partner Jurgen van der Meer, counsel Dewi Walian, senior associate Gesrow Hamid and associate Helen Liefting (all Capital Markets, Amsterdam), partner Michiel Sunderman, counsel Nolan Groenland and associate Robin Houtveen (all Tax, Amsterdam) and 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 Christine Chen and also included Helen Zhao and Ariel Fan.