BNP Paribas, HSBC, HypoVereinsbank and Morgan Stanley will lead manage a euro-denominated benchmark bond for Volkswagen as the German carmaker aims to capitalise on the positive tone in the European debt markets at the start of 2003.

Volkwagen is one of the first companies to announce plans to raise debt this year and bankers said its decision will further bolster sentiment in the corporate bond sector at a time when the market is focusing on the new issuance pipeline in the New Year.