The Volkswagen Group plans to sell up to 1.2bn (£1.02bn) in bonds to fund its vehicle finance arm, Volkswagen Financial Services (VWFS).
This is the second such large-scale issue by VW in seven months, following a similar sale in November 2012.
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The new mandatory convertible notes have a coupon of 5.5% and will be offered at an issue price of 105.64% of their principle amount. These notes will be converted into preferred shares, without voting rights, when they mature on 9 November 2015.
VWFS posted increased global operating profits for 2012 and for Q1 2013.
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