German car maker Volkswagen (VOWG.DE) has revised guidance on its bond issue backed by auto leases, an official at one of the banks managing the sale said on Wednesday.

The bond is in two tranches. Guidance on a 457.5 million euro tranche has been revised to 1-month Euribor plus 110 basis points from plus around 115 basis points.

Guidance on a 17.5 million euro tranche has been revised to 1-month Euribor plus 250 basis points from plus 250 to 300 basis points, the official said.

The deal is the first of its kind for a year because the credit crisis froze the market for such asset-backed bonds. It could pave the way for other issues.

(Editing by Elaine Hardcastle)

Volkswagen