LONDON, Aug 29 (IFR) - Volkswagen is preparing to print a dual-tranche euro hybrid bond consisting of non-call five-year and a non-call ten-year securities, a banker on the deal said on Thursday.
The German car maker, rated A3/A- on a senior level, is expected to receive 50% equity credit from both Moody's and Standard & Poor's for the bonds, which will be perpetual and subject to coupon step-ups every five and ten years respectively. They are expected to be rated Baa2/BBB.
Bank of America Merrill Lynch, Citigroup, Commerzbank and Goldman Sachs have been mandated to run the deal, which could price as early as Thursday, one banker on the deal said.
Reporting By Josie Cox; editing by Sudip Roy