SMBC supports Volkswagen Group in its Global Bond Funding Campaign

SMBC was proud to serve as an Active Bookrunner in Volkswagen Group’s $2 billion triple-tranche senior bond transaction in the U.S. market - Volkswagen’s second dollar-denominated issuance of 2025. This successful transaction underscores SMBC’s ability to deliver strategic capital markets solutions for global industrial clients, even in highly competitive environments. 

The deal launched immediately after the U.S. Labor Day holiday, a period marked by heightened market activity. Volkswagen was the first auto sector issuer to enter the market that day, ahead of 27 other borrowers. SMBC played a pivotal role in helping Volkswagen capture investor attention early, leveraging our deep market insight to position the transaction for success. 

SMBC’s capital markets team provided strategic guidance on pricing and tenor allocation, helping Volkswagen navigate a crowded issuance landscape. By advising on a pricing strategy that set initial levels wider than the secondary curve, SMBC helped build early momentum and distinguish the offering from peers. The result: strong investor demand and full subscription across all tranches. 

The $2 billion offering was structured to meet diverse investor maturity preferences: 

• $750 million with a two-year tenor 

• $750 million with a three-year tenor 

• $500 million with a five-year tenor 

Notably, Volkswagen was the only auto issuer that day to offer a two-year tranche, a move tailored to meet specific investor appetite - an approach shaped by SMBC’s market intelligence and structuring expertise. 

This transaction highlights SMBC’s commitment to delivering high-quality execution and our ability to support clients with tailored financing strategies. Our role in this deal reinforces SMBC’s reputation as a trusted partner in global capital markets and a leader in industrial sector financing.