Clifford Chance advises VW on Panda bond issuance

Clifford Chance has advised Volkswagen Group on its fifth Panda bond issuance under its Debt Financing Instruments Issuance Programme in the People’s Republic of China. The bond, issued by Volkswagen International Finance and guaranteed by Volkswagen Aktiengesellschaft, totalled RMB3 billion across two tranches and was sold to institutional investors.

Tranche one amounted to RMB2 billion with a three-year term, while tranche two amounted to RMB1 billion with a five-year term. The issuance was underwritten by Bank of China, China Construction Bank, Deutsche Bank (China) and Industrial and Commercial Bank of China. Panda bonds are renminbi-denominated bonds issued onshore by issuers with their registered seat outside of China.

Legal teams

The Clifford Chance team was led by partner Cristina Freudenberger (pictured) and included transaction lawyer Felicitas Fischer (both capital markets, Frankfurt), partner Jurgen van der Meer, senior associate Marina Sarkisjan and associates Mark van Bresk and Yorinde Boogaard (all capital markets, Amsterdam), as well as partner Angela Chan, counsel Torrance Shi and associate Michael Cheng (all capital markets, Hong Kong).

Fangda Partners advised Volkswagen on PRC law, with a team led by Helen Zhao and including Howie Jiang and Ariel Fan.