Obligation Volksfinance AG 2.87% ( XS2328430470 ) en EUR

Volksfinance AG

100 % ⇌

Allemagne

XS2328430470 ( en EUR )

2.87% par an ( paiement trimestriel )

05/04/2023 - Obligation échue

Prospectus brochure de l'obligation Volkswagen Financial Services AG XS2328430470 en EUR 2.87%, échue

100 000 EUR

500 000 000 EUR

Volkswagen Financial Services AG est une société de services financiers qui propose des solutions de financement et de location aux clients de Volkswagen et d'autres marques automobiles du groupe Volkswagen.

Volkswagen Financial Services AG, une entité clé du Groupe Volkswagen spécialisée dans les services financiers liés à l'automobile, incluant le financement de véhicules, le leasing et la gestion de flotte, a récemment finalisé le remboursement d'une de ses obligations d'entreprise. Cette émission, identifiée par le code ISIN XS2328430470, a été émise depuis l'Allemagne, libellée en EUR, et affichait un taux d'intérêt de 2,87% avec une fréquence de paiement des coupons trimestrielle (4 fois par an). La taille totale de cette émission s'élevait à 500 000 000 EUR, avec une taille minimale à l'achat de 100 000 EUR. Arrivée à sa date de maturité le 5 avril 2023, cette obligation a été remboursée à 100% de sa valeur nominale, confirmant ainsi le succès de son cycle d'investissement pour les détenteurs.

Dated 17 June 2020

This document constitutes five base prospectuses for the purposes of Article 8 (1) of Regulation (EU) 2017/1129
of the European Parliament and the Council of 14 June 2017, as amended (the "Prospectu s Regulation"): (i) the
base prospectus of Volkswagen Financial Services Aktiengesellschaft in respect of non-equity securities within
the meaning of Art. 2 lit. c) of the Prospectus Regulation ("Non-Equity Securities"), (ii) the base prospectus of
Volkswagen Leasing GmbH in respect of Non-Equity Securities, (ii ) the base prospectus of Volkswagen Financial
Services N.V. in respect of Non-Equity Securities, (iv) the base prospectus of Volkswagen Financial Services
Japan Ltd. in respect of Non-Equity Securities and (v) the base prospectus of Volkswagen Financial Services
Australia Pty Limited in respect of Non-Equity Securities (together, the "Prospectus").

VOLKSWAGEN FINANCIAL SERVICES
AKTIENGESELLSCHAFT
Braunschw eig, Federal Republic of Germany
Issuer and/or Guarantor

VOLKSWAGEN LEASING GMBH
Braunschw eig, Federal Republic of Germany
Issuer

VOLKSWAGEN FINANCIAL SERVICES N.V.
Amsterdam, The Netherlands
Issuer

VOLKSWAGEN FINANCIAL SERVICES JAPAN LTD.
Tokyo, Japan
Issuer

VOLKSWAGEN FINANCIAL SERVICES AUSTRALIA PTY LIMITED
(ABN 20 097 071 460)
Sydney, Australia
Issuer

EUR 35,000,000,000
Debt Issuance Programme (the "Programme")

Arranger

UNICREDIT BANK

Dealers

BBVA
BARCLAYS
BAYERNL B
BNP PARIBAS
BofA SECURITIES
CITIGROUP
COMMERZBANK
CRÉDIT AGRICOLE CIB
DANSKE BANK
DEUTSCHE BANK
GOLDMAN SACHS BANK
HSBC
EUROPE SE
J.P. MORGAN
LANDESBANK BADEN-
LLOYDS BANK CORPORAT E
WÜRTTEMBERG
MARKETS
WERTPAPIERHANDELSBANK
MUFG
MIZUHO SECURITIES
NATWEST MARKETS
RBC CAPITAL MARKETS
SANTANDER CORPORAT E &
SEB
INVESTMENT BANKING
SOCIÉTÉ GÉNÉRAL E
TD SECURITIES
UNICREDIT BANK
CORPORAT E & INVESTMENT
BANKING
Issuing Agent

CITIBANK, N.A.

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Application has been made to the Luxembourg Commission de Surveillance du Secteur Financier (the
"Commission" or the "CSSF"), in its capacity as the competent authority under the Prospectus Regulation
and the Luxembourg act relating to prospectuses for securities dated 16 July 2019 ( Loi du 16 juil et 2019
relative aux prospectus pour valeurs mobilières et portant mise en oeuvre du règlement (UE) 2017/1129,
the "Luxembourg Law").

The CSSF only approves this Prospectus as meeting the standards of completeness,
comprehensibility and consistency imposed by the Prospectus Regulation. Such approval should
not be considered as an endorsement of the economic and financial soundness of the operation or
the quality and solvency of the Issuer and/or the Guarantors or of the quality of the Notes that are
the subject of this Prospectus pursuant to Article 6 (4) of the Luxembourg Law. Investors should
make their own assessment as to the suitability of investing in the Notes.

Application has been made to the Luxembourg Stock Exchange for notes (the " Notes") issued under this
Pr ogramme to be admitted to trading on the regulated market of the Luxembourg Stock Exchange (as defined
below ) and to be listed on the official list of the Luxembourg Stock Exchange. Notes issued under the Pr ogramme
may also be listed and traded on an alternative stock exchange or may not be listed at al .

Each Issuer has requested the Commission to provide the competent authorities in the Federal Republic of
Ger many, the Nether lands, the United Kingdom of Great Britain and Northern Ireland, the Republic of Ireland, and
the Republic of Austria w ith a certificate of approval attesting that the Prospectus has been draw n up in
accordance w ith the Prospectus Regulation ("Notification"). Each Issuer may request the Commission to provide
competent authorities in additional Member States w ithin the European Economic Area w ith a Notification.

This Prospectus and any supplement thereto w il be published in electronic form on the w ebsite of the
Luxembourg Stock Exchange (www.bourse.lu) and the w ebsite of Volksw agen Financ ial Services
(www.vwfs.com). Potential investors should be aw are that any w ebsite referred to in this document does not for m
part of this Prospectus and has not been scrutinised or approved by the CSSF.

This Base Prospectus is valid for a period of twelve months after its approval. The validity ends upon
expiration of 17 June 2021. There is no obligation to supplement the Prospectus in the event of
significant new factors, material mistakes or material inaccuracies w hen the Prospectus is no longer valid .

- 3 -

Notice

This Prospectus should be read and understood in conjunction w ith any supplement thereto and w ith any other
document incorporated herein by reference. Ful infor mation on each Issuer and any Tranche of Notes is only
available on the basis of the combination of the Prospectus and the relevant final terms (the "Final Terms").

Each Issuer and the Guarantor have confir med to the Dealers (as defined herein) that this Pr ospectus contains all
information w ith regard to the Issuers and the Notes w hich is material in the context of the Programme and the
issue and offering of Notes thereunder; that the infor mation contained in the Prospectus is accurate and complete
in al material respects and is not misleading; that any opinions and intentions expressed herein are honestly held
and based on reasonable assumptions; that there are no other facts w ith respect to the Issuer, the Guarantor or
the Notes, the omission of w hich w ould make the Prospectus as a w hole or any statement, w hether fact or
opinion, in this Prospectus misleading in any mater ial respect; and that al reasonable enquiries have been made
to ascertain al facts and to verify the accuracy of al statements c ontained herein.
No person has been authorised to give any information which is not contained in or not consistent with this
Pr ospectus or any other infor mation supplied in connection w ith the Programme and, if given or made, such
information must not be relied upon as having been authorised by or on behalf of the Issuers, the Guarantor, the
Dealers or any of them.

This Prospectus is valid for tw elve months fol ow ing its date of approval and this Pr ospectus and any supplement
hereto as w el as any Final Ter ms reflect the status as of their respective dates of issue. Notw ithstanding that the
Issuers may be required to provide a supplement pursuant to Article 23 of the Prospectus Regulation, the delivery
of this Pr ospectus or any Final Ter ms and the offering, sale or delivery of any Notes may not be taken as an
implication that the information contained in such documents is accurate and complete subsequent to their
respective dates of issue or that there has been no adverse change in the financial situation of the Issuers and
the Guarantor since such date or that any other information supplied in connection w ith the Prog ramme is
accurate at any time subsequent to the date on w hich it is supplied or, if different, the date indicated in the
document containing the same.
Each Issuer and the Guarantor have undertaken with the Dealers to supplement this Prospectus or publish a new
Pr ospectus in the event of any significant new factor, material mistake or inaccuracy relating to the information
included in this Prospectus w hich is capable of affecting the assessment of the Notes and w hich arises or is noted
betw een the time w hen this Prospectus has been approved and the final closing of any Tranche of Notes offered
to the public or, as the case may be, w hen trading of any Tranche of Notes on a regulated market begins.

Neither the arranger as set forth on the cover page (the "Arranger") nor any Dealer nor any other person
mentioned in this Prospectus, excluding the Issuers, is responsible for the infor mation contained in this
Pr ospectus or any supplement hereto, or any Final Ter ms or any other document incorporated herein by
reference, and accordingly, and to the extent per mitted by the law s of any relevant jur isdiction, none of these
persons accepts any responsibility for the accuracy and completeness of the infor mation contained in any of
these documents.

The distribution of this Prospectus and any Final Ter ms and the offering, sale and delivery of Notes in certain
jurisdictions may be restricted by law . Persons into w hose possession this Prospectus or any Final Ter ms come
are required to inform themselves about and observe any such restrictions. For a description of the restrictions
applicable in the United States of America, the European Economic Area, the United Kingdom, The Netherlands,
the Republic of Austria, Japan and Australia see " Subscription and Sale". In particular, the Notes have not been
and w il not be registered under the United States Securities Act of 1933, as amended, and are subject to tax law
requirements of the United States of A merica; subject to certain exceptions, Notes may not be offered, sold or
delivered w ithin the United States of America or to U.S. persons. This Prospectus may only be communicated or
caused to be communicated in circumstances in w hich Section 21(1) of the Financ ial Services and Mar kets Act
2000 ("FSMA") does not apply. If a jurisdiction requires that the offering be made by a licensed broker or dealer
and the Dealers or any parent company or affiliate of the Dealers is a licensed broker or dealer in that jur isdiction,
the offering shal be deemed to be made by the Dealers or such parent company or affiliate in such jurisdiction.

The language of the Prospectus is English. Where parts of the Prospectus are drafted in a bilingual format
reflecting both an English language version and a Ger man language version the English language version s hall
be the control ing language for reading and construing the contents of the Prospectus, provided that certain parts
of the Prospectus reflect documents w hich have been, or w il be, executed as separate documents w ith the
Ger man language version being controlling and binding. Consequently, in respect of the issue of any Tranche of
Notes under the Pr ogramme, the Ger man language version of the Ter ms and Conditions may be control ing and
binding if so specified in the relevant Final Ter ms and in respect of the Guarantee, the Ger man language version
is alw ays control ing and binding.

This Prospectus may only be used for the purpose for w hich it has been published.

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This Prospectus and any Final Terms may not be used for the purpose of an offer or solicitation by
anyone in any jurisdiction in w hich such offer or solicitation is not authorised or to any person to w hom it
is unlaw ful to make such an offer or solicitation.

This Prospectus, any supplements thereto and any Final Terms do not constitute an offer or an invitation
to subscribe for or purchase any of the Notes.

In connection w ith the issue of any Tranche of Notes under the Programme, the Dealer or Dealers (if any)
named as stabilisation manager(s) in the applicable Final Terms (or persons acting on be half of any
stabilisation manager(s)) may over-allot Notes or effect transactions, outside Australia and on a market
operated outside of Australia, w ith a view to supporting the market price of the Notes at a higher level
than that w hich might otherw ise prevail. How ever, stabilisation may not necessarily occur. Any
stabilisation action may begin on or after the date on w hich adequate public disclosure of the terms of
the offer of the relevant Tranche of Notes is made and, if begun, may cease at any time, but it must end
no later than the earlier of 30 days after the issue date of the relevant Tranche of Notes and 60 days after
the date of the allotment of the relevant Tranche of Notes. Any stabilisation action or over -allotment must
be conducted by the relevant stabilisation manager(s) (or person(s) acting on behalf of any stabilisation
manager(s)) in accordance w ith all applicable law s and rules .

EU Benchmarks Regulation: Article 29 (2) statement on benchmarks

Amounts payable under the Notes may be calculated by reference to EURIBOR, w hich is provided by European
Money Mar kets Institute (" EMMI"), LIBOR, w hich is provided by ICE Benchmark Administration ("IBA") or any
other benchmark in each case as specified in the Final Ter ms. As at the date of this Prospectus, IBA and EMMI
appear on the register of administrators and benchmarks established and maintained by the European Securities
and Markets Authority (" ESMA") pursuant to Article 36 of the Benchmarks Regulation ( Regulation ( EU)
2016/1011).

Product Governance

The Final Ter ms in respect of any Notes may include a legend entitled "MiFID II Product Governance " which w il
outline the target market assessment in respect of the Notes and w hich channels for distribution of the Notes are
appropriate. Any person subsequently offering, selling or recommending the Notes (a "distributor") should take
into cons ideration the target market assessment; how ever, a distributor subject to MiFID II is responsible for
undertaking its ow n target market assessment in respect of the Notes (by either adopting or refining the target
market assessment) and deter mining appropr iate distribution channels. A deter mination w il be made in relation to
each issue about w hether, for the purpose of the MiFID Product Governance rules under EU Delegated Directive
2017/593 (the "MiFID Product Governance Rules "), any Dealer subscribing for any Notes is a manufacturer in
respect of such Notes, but otherw ise neither the Arranger nor the Dealers nor any of their respective affiliates w il
be a manufacturer for the purpose of the MIFID Product Governance Rules.

Notification under Section 309B of the Securities and Futures Act, Chapter 289 of Singapore

In connection w ith Section 309B of the Securities and Futures Act, Chapter 289 of Singapore as modified or
amended from time to time including by any subsidiary legislation as may be applicable at the relevant time
(together, the SFA), unless otherw ise specified before an offer of Notes, each Issuer has deter mined, and hereby
notifies al relevant persons (as defined in Section 309(A)(1) of the SFA), that the Notes are 'prescribed capital
markets products' (as defined in the Secur ities and Futures ( Capital Markets Products) Regulations 2018) and
'Excluded Investment Products' (as defined in MA S Notice SFA 04- N12: Notice on the Sale of Investment
Products and MAS Notice FAA-N16: Notice on Recommendations on Investment Products).

In this Prospectus, al references to " EUR" are to the euro, the s ingle currency of the member states participating
in the European Monetary Union, to " GBP" are to British pounds sterling, the official currency of the United
Kingdom, to " USD" are to U.S. dol ar, the official currency of the United States of A merica, to " AUD" are to
Australian dollar, the official currency of the Commonw ealth of Australia and to " YEN" are to Japanese yen, the
official currency of Japan and to "T RY" are to Turkish Lira, the official currency of Turkey and the Turkish
Republic of Northern Cyprus.

Infor mation relating to the diesel issue described herein w ith regards to Volksw agen Group is based on public
information and is subject to change. The Issuers and the Guarantor have not independently verified any such
information.

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Table of Contents
Page
General Description of the Programme .................................................................................. 7
Risk Factors....................................................................................................................... 10
Risk Factors regarding Volkswagen Financial Services Aktiengesellschaft ................... 10
Financial and business related risks .................................................................. 10
Captive related risks ......................................................................................... 18
Legal risks ....................................................................................................... 22
Risks related to strategic decision ..................................................................... 23
Economic dependencies ................................................................................... 26
Regulatory risks ............................................................................................... 27
Risk Factors regarding Volkswagen Leasing GmbH..................................................... 30
Financial and business related risks .................................................................. 30
Captive related risks ......................................................................................... 36
Legal risks ....................................................................................................... 39
Risks related to strategic decision ..................................................................... 40
Economic dependencies ................................................................................... 43
Regulatory risks ............................................................................................... 43
Risk Factors regarding Volkswagen Financial Services N.V.......................................... 46
Financial and business related risks .................................................................. 46
Captive related risks ......................................................................................... 50
Legal risks ....................................................................................................... 50
Risks related to strategic direction .................................................................... 51
Economic dependencies ................................................................................... 52
Regulatory risks ............................................................................................... 53
Risk Factors regarding Volkswagen Financial Services Japan Ltd. ............................... 55
Financial and business related risks .................................................................. 55
Captive related risks ......................................................................................... 60
Legal risks ....................................................................................................... 62
Risks related to strategic direction .................................................................... 63
Economic dependencies ................................................................................... 65
Regulatory risks ............................................................................................... 65
Risk Factors regarding Volkswagen Financial Services Australia Pty Limited................ 67
Financial and business related risks .................................................................. 67
Captive related risks ......................................................................................... 72
Legal risks ....................................................................................................... 75
Risks related to strategic direction .................................................................... 76
Economic dependencies ................................................................................... 78
Regulatory risks ............................................................................................... 78
Risk Factors regarding the Notes ............................................................................... 81
Risks related to the payout of the Notes ............................................................. 81
Risks related to an early termination .................................................................. 82
Risks related to reference rates ......................................................................... 82
Risks related to the investment in the Notes....................................................... 83
Risks related to tax matters ............................................................................... 85
Volkswagen Financial Services Aktiengesellschaft as Issuer and Guarantor .......................... 86
Volkswagen Leasing GmbH as Issuer .................................................................................. 96
Volkswagen Financial Services N.V. as Issuer .................................................................... 100
Volkswagen Financial Services Japan Ltd. as Issuer .......................................................... 103
Volkswagen Financial Services Australia Pty Limited as Issuer ........................................... 106
Description of the Notes ................................................................................................... 109

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English Language Terms and Conditions........................................................................... 112
Option I. Terms and Conditions for Notes with fixed interest rates.............................. 112
Option II. Terms and Conditions for Notes with floating interest rates ......................... 131
Option III. Terms and Conditions for Notes with fixed to floating interest rates ............ 153
Deutsche Fassung der Anleihebedingungen ...................................................................... 177
Option I. Anleihebedingungen für Schuldverschreibungen mit fester Verzinsung ........ 177
Option II. Anleihebedingungen für Schuldverschreibungen mit variabler Verzinsung... 199
Option III. Anleihebedingungen für Schuldverschreibungen mit fester zu variabler
Verzinsung .............................................................................................................. 225
Guarantee ........................................................................................................................ 254
Garantie........................................................................................................................... 256
FORM OF FINAL TERMS ................................................................................................... 259
Part I.: CONDITIONS ................................................................................................ 262
Teil I.: BEDINGUNGEN ............................................................................................. 262
[Option I. Notes with fixed interest rates.................................................................... 263
Option I. Schuldverschreibungen mit fester Verzinsung ............................................. 263
[Option II. Notes with floating interest rates............................................................... 269
Option II. Schuldverschreibungen mit variabler Verzinsung ....................................... 269
[Option III. Notes with fixed to floating interest rates .................................................. 275
Option III. Schuldverschreibungen mit fester zu variabler Verzinsung ......................... 275
Part II.: OTHER INFORMATION ................................................................................. 282
Teil II.: WEITERE INFORMATIONEN .......................................................................... 282
Use of Proceeds ............................................................................................................... 292
Taxation........................................................................................................................... 293
Subscription and Sale....................................................................................................... 310
General Information.......................................................................................................... 316
1. Responsibility Statement ...................................................................................... 316
2. Listing and Admission to Trading ......................................................................... 316
3. Consent to use Prospectus................................................................................... 316
4. Interest of Natural and Legal Persons involved in the Issue/Offer ............................ 317
5. Authorisations ..................................................................................................... 317
6. Publication of the Prospectus ............................................................................... 317
7. Documents on Display ......................................................................................... 318
8. Clearing Systems ................................................................................................. 318
9. Ratings................................................................................................................ 318
10. Third party information ....................................................................................... 319
11. Alternative Performance Measures ...................................................................... 319
Documents Incorporated by Reference .............................................................................. 321
Address List .................................................................................................................... 328

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General Description of the Programme
1. General Information

Under this EUR 35,000,000,000 Debt Issuance Programme, Volksw agen Financial Services Aktiengesellschaft
("VWFSAG"), Volksw agen Leasing GmbH ("VWL GMBH"), Volksw agen Financial Services N.V. ("VWFSNV"),
Volksw agen Financial Services Japan Ltd. ("VWFSJ") and Volksw agen Financial Services Australia Pty Limited
("VWFSAL") may from time to time issue Notes to one or more of the fol ow ing Dealers: Banco Bilbao Vizcaya
Argentaria, S.A., Banco Santander, S.A., Barclays Bank Ireland PLC, Bayerische Landesbank, BNP Par ibas,
Citigroup Global Markets Limited, Commerzbank Aktiengesel schaft, Crédit Agricole Corporate and Investment
Bank, Danske Bank A/S, Deutsche Bank Aktiengesellschaft, Goldman Sachs Bank Europe SE, Mizuho Securities
Europe GmbH, HSBC Bank plc, J.P. Morg an Securities plc, Landesbank Baden-Württemberg, Lloyds Bank
Corporate Markets Wertpapierhandelsbank GmbH, BofA Securities Europe SA, MUFG Securities (Europe) N.V.,
NatWest Mar kets Plc, RBC Europe Limited, Skandinaviska Ens kilda Banken AB (publ), Société Générale, The
Toronto- Dominion Bank, UniCredit Bank AG or any additional Dealer appointed under the Programme from time
to time by the Issuer(s) (each a " Dealer" and together, the " Dealers"), w hich appointment may be for a specific
issue or on an ongoing basis.

The maximum aggregate principal amount of the Notes at any one time outstanding under the Programme w il not
exceed EUR 35,000,000,000 (or its equivalent in any other currency). The Issuers may increase the amount of
the Programme in accordance w ith the terms of the Dealer Agreement (as defined herein) from time to time.

The Notes may be issued on a continuing basis to one or more of the Dealers. Notes may be distributed by w ay
of public offer or private placements and, in each case, on a syndicated or non-syndicated bas is. The method of
distribution of each Tranche w il be stated in the relevant Final Ter ms. The Notes may be offered to qualified and
non-qualified investors, unless the applicable Final Ter ms include a legend entitled "PROHIBITION OF SALES
TO EEA AND UK RETAIL INVESTORS".

Each issue of Notes shal be made in series w ith a minimum aggregate pr incipal amount of EUR 5,000,000 (or its
equivalent in any other currencies) or such s maller amount as agreed from time to time betw een the respective
Issuer and the respective Dealer for any individual series.
In case of Notes issued by VWFSAG, VWLGMBH, VWFSNV and VWFSAL, such Notes wil be issued in such
denominations as may be specified in the relevant Final Ter ms, save that the minimum denomination of the Notes
w il be, if in euro, EUR 1,000 and, if in any currency other than euro, an amount in such other currency nearly
equivalent to EUR 1,000 at the time of the issue of the Notes. In case of Notes issued by VWFSJ, the minimum
denomination of the Notes w il be, if in euro, EUR 100,000 and, if in any currency other than euro, an amount in
such other currency nearly equivalent to EUR 100,000 at the time of the issue of Notes.

Notes w il be issued in tranches (each a "Tranche"), each Tranche consisting of Notes w hich are identical in all
respects. One or more Tranches, w hich are expressed to be consolidated and forming a single series and being
identical in al respects, but may have different issue dates, interest commencement dates, issue prices and/or
dates for first interest payments may form a series (each a " Series") of Notes. Further Notes may be issued as
part of existing Series.

Volksw agen Financial Services Aktiengesellschaft (the "Guarantor") has given its unconditional and irrevocable
Guarantee (the "Gu arantee") for the due pay ment of the amounts corresponding to the principal of and interest
on the Notes issued by VWLGMBH, VWFSNV, VWFSJ or VWFSAL.

Notes may be issued at their principal amount or at a discount or premium to their princ ipal amount as specified in
the applicable Final Terms.

Under the Programme, the Issuers w il not issue Notes w here the redemption amount 1 is deter mined by reference
to an underlying (including an underlying in the for m of a security, an index, an interest rate or a basket of
underlyings).

Application has been made to the Commission, w hich is the Luxembourg competent authority for the purpose of
the Prospectus Regulation, for the approval of this Prospectus.
Application has been made to the Luxembourg Stock Exchange for Notes to be issued under this Prospectus to
be admitted to trading on the "regulated market of the Luxembourg Stock Exchange" w hich is a regulated market
for the purposes of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on
markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (recast) , and to

1
The Redemption Amount shall at least be equal to the nominal value.

- 8 -

be listed on the official list of the Luxembourg Stock Exchange. The Programme provides that Notes may be listed
and traded on any other stock exchange agreed betw een the relevant Issuer and the relevant Dealer(s) that may
qualify as a regulated market as indicated in the relevant Final Ter ms. Notes may also be issued w ithout being
listed.

Banque de Luxembourg, S.A. w il act as Listing Agent. Citibank, N.A. w il act as Issuing Agent and Principal
Paying Agent.

2. Issue Procedures
General

The Issuer and the relevant Dealer(s) w il agree on the ter ms and conditions applicable to each particular Series
of Notes (the "Conditions"). The Conditions w il be constituted by the relevant set of Ter ms and Conditions of the
Notes set forth below (the "Ter ms and Conditions") as further specified by the Final Ter ms (the "Final Ter ms") as
described below .

Options for sets of Terms and Conditions

A separate set of Ter ms and Conditions applies to each type of Notes, as set forth below . The Final Ter ms
provide for the Issuer to choose betw een the fol ow ing Options:

- Option I Terms and Conditions for Notes w ith fixed interest rates;

- Option I Terms and Conditions for Notes w ith floating interest rates;

- Option II Terms and Conditions for Notes w ith fixed to floating interest rates;

Documentation of the Conditions

The Issuer may document the Conditions of an individual Series of Notes either as Replication Conditions or as
Reference Conditions w hereas:

- "Replication Conditions" means that the provisions of the set of Ter ms and Conditions in the form replicated
and completed in Part I. of the Final Ter ms shall constitute the Conditions. The Final Ter ms shall deter mine w hich
of Option I, II or III of the Ter ms and Conditions respectively, shal be applicable to the individual Series of Notes
by replicating the relevant provis ions and completing the relevant placeholders of the relevant set of Ter ms and
Conditions as set out in the Prospectus in the Final Ter ms. The replicated and c ompleted provisions of the set of
Ter ms and Conditions alone shall constitute the Conditions, w hich w il be attached to each global note
representing the Notes of the relevant Series. Replication Conditions w il be required w here the Notes are publicly
offered, in w hole or in part, or are to be initial y distributed, in w hole or in part, to non-qualified investors.

- "Reference Conditions" means that the provisions in Part I of the Final Ter ms that specify and complete the
relevant set of Ter ms and Conditions and the relevant set of Ter ms and Conditions as set out in the Prospectus,
taken together shal constitute the Conditions. The Final Ter ms shall deter mine w hich of Option I, II or III of the
Ter ms and Conditions are applicable to the individual Series by referring to the relevant provisions of the relevant
set of Ter ms and Conditions as set out in the Pr ospectus only. The provisions of the Final Ter ms and the relevant
set of Ter ms and Conditions as set out in the Pr ospectus, taken together, shal constitute the Conditions. Each
global note representing a particular Series of Notes w il have the Final Ter ms and the relevant set of Ter ms and
Conditions as set out in the Prospectus attached.

Determination of Options / Completion of Placeholders

The Final Ter ms shal deter mine w hich of Option I, II or III shall be applicable to the individual Series of Notes.
Each of the sets of Ter ms and Conditions of Option I, II, III contains also certain further options (characterised by
indicating the respective option al provision through instructions and explanatory notes set out in square brackets
w ithin the text of the relevant set of Ter ms and Conditions as set out in the Prospectus) as w el as placeholders
(characterised by square brackets w hich inc lude the relevant items) w hich w il be deter mined by the Final Ter ms
as fol ow s:

Determination of Options

The Issuer w il deter mine w hich options w il be applicable to the individual Series either by replicating the relevant
provisions in the Final Ter ms or by reference of the Final Ter ms to the respective sections of the relevant set of
Ter ms and Conditions as set out in the Prospectus. If the Final Ter ms do not refer to an alternative or optional
provision or such alternative or optional provision is not replicated therein it shall be deemed to be deleted from
the Conditions.

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Completion of Placeholders

The Final Ter ms w il specify the information w ith w hich the placeholders in the relevant set of Ter ms and
Conditions w il be completed taking into account the categor isation requirements in the Commission Delegated
Regulation ( EU) 2019/980 of 14 March 2019 (the "Commission Delegated Regulation"). In the case the
provisions of the Final Ter ms and the relevant set of Ter ms and Conditions, taken together, shall constitute the
Conditions the relevant set of Ter ms and Conditions shal be deemed to be completed by the information
contained in the Final Ter ms as if such infor mation w ere inserted in the placeholders of such provisions. All
instructions and explanatory notes and text set out in square brac kets in the relevant set of Ter ms and Conditions
and any footnotes and explanatory text in the Final Terms w il be deemed to be deleted from the Conditions.

Al instructions and explanatory notes and text set out in square brackets in the relevant set of Ter ms and
Conditions and any footnotes and explanatory text in the Final Ter ms w il be deemed to be deleted from the
Conditions.

Controlling Language

As to the controlling language of the respective Conditions, the Issuer anticipates that, in general, subject to any
stock exchange or legal requirements applicable from time to time, and unless otherw ise agreed betw een the
Issuer and the relevant Dealer(s): in the case of Notes publicly offered, in w hole or in part, in the Federal Republic
of Germany or distributed, in w hole or in part, to non-qualified investors in the Federal Republic of Ger many,
Ger man w il be the controlling language. If, in the event of such public offer or distribution to non-qualified
investors, how ever, English is chosen as control ing language, a Ger man language translation of the Conditions
w il be available from the respective offices of the Paying Agent in the Federal Republic of Ger many and the
Issuer, and in the case of Notes issued by VWLGMBH, VWFSNV, VWFSJ or VWFSAL, the Guarantor, as
specified under Address List on page 328 331 of this Prospectus.

- 10 -

Risk Factors

The following information discloses the principal risk factors which are specific and material to VWFSAG,
VWLGMBH, VWFSNV, VWFSJ and VWFSAL and the Notes in order to enable prospective investors to assess
the risks associated with investing in the Notes issued under this Prospectus. Prospective purchasers of Notes
should consider these risk factors, together with the other information in this Prospectus, before deciding to
purchase Notes issued under the Programme.
These risk factors are presented in risk categories and sub-categories depending on their nature. In each risk
category and sub-category, the most material risk factors are describ ed first. The assessment of materiality of the
risk factors has been made by the Issuer as of the date of this Prospectus on the basis of the probability of their
occurrence and the expected magnitude of their negative impact.

Prospective investors should consider all information provided in this Prospectus and should take into account
their current financial situation and their investment objectives before deciding whether to invest in the Notes.
Prospective investors are also advised to consult their own tax advisers, legal advisers, accountants or other
relevant advisers as to the risks associated with, and consequences of, the purchase, ownership and disposition
of the Notes including the effect of any laws of each country in which they are resident.
In addition, prospective investors should be aware that the described risks may result in a significant decrease in
the price of the Notes up to a total loss of interest and the invested capital.

Information relating to the diesel issue described herein with regards to Volkswagen Group is based on public
information and is subject to change. None of the Issuers has independently verified any such information.

Risk Factors regarding Volkswagen Financial Services Aktiengesellschaft

The business model of VWFSAG and its subsidiaries in general can entail risk factors that may affect the
VWFSA G Group's business, liquidity, financial position, net assets and/or results of operations and as a
consequence its ability to fulfil its obligations under the Notes issued under the Programme.
Risk factors relating to VWFSAG can be divided into the fol ow ing categories depending on their nature w ith the
most material risk factors presented first in each category:

-
Financial and business related risks
-
Captive related risks
-
Legal risks
-
Risks related to strategic direction
-
Economic dependencies
-
Regulatory risks
Financial and business related risks
VWFSAG Group is exposed to the risk that its customers or other contractual counterparties may default
or that the credit quality of its customers or other contractual counterparties may deteriorate.
The risk of counterparty default at VWFSAG Group is def ined as the potential negative deviation of the actual
counterparty risk outcome from the planned one. This includes but is not limited to the ris k of default on lease
pay ments as w el as on repay ment and interest pay ments of financing contracts. The deviation in outcome occurs
when the actual loss exceeds the expected loss due to changes in internal credit ratings or credit losses. Within
the risk type "risk of counterparty default", VWFSAG Group distinguishes betw een credit risk, credit risk from
intercompany loans, counterparty risk, issuer risk (including counterparty default ris k according to Solvency II),
country risk and shareholder risk.

Credit Risk
Credit r isk concerns the r isk of loss through defaults in the customer business, for example, due to non-pay ments
by a borrow er or lessee of their obligations. The default is contingent on the inability or unw il ingness of the