Volkswagen unit launches 1.0 bln euro bond


LONDON, Aug 29 (Reuters) - The funding arm of German carmaker Volkswagen has launched a one billion euro bond that matures in March 2008, the firm's banks said on Thursday. VW Financial Services, which offers funding to clients buying the company's cars, expects to price the deal on Thursday at an interest rate of 65 basis points over the swaps curve -- at the tight end of expectations. The deal was managed by Barclays Capital, Commerzbank and SG Investment Banking.

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