Credit Suisse Switzerland issues CHF 660m Covered Bonds under its innovative Swiss Covered Bond Programme launched in July 2019
On 19 June 2019, Credit Suisse (Switzerland) Ltd. established a CHF 20 billion Swiss Covered Bond Programme. The Covered Bonds benefit from a guarantee issued by its subsidiary Credit Suisse (Switzerland) Mortgages Ltd., indirectly secured by a pool of Swiss residential mortgage loans. The Programme is based on an innovative, entirely Swiss law governed structure which is a first of its kind for a SIB in Switzerland. It enables Credit Suisse Switzerland to directly access secured funding and replaces the international Covered Bond Programme established by Credit Suisse AG in 2020.
Following an inaugural issuance of CHF 250 million Covered Bonds on 16 July 2019, Credit Suisse Switzerland successfully completed its second and third issuances under the Programme on 31 January 2020, issuing CHF 350 million Series 2020-1 0.000 per cent. fixed rate Covered Bonds due July 2025 and CHF 310 million Series 2020-2 0.000 per cent. fixed rate Covered Bonds due October 2030. The Covered Bonds are listed on the SIX Swiss Exchange and rated AAA by Fitch. In respect of both issuances, Credit Suisse AG acted as Lead Manager, Commerzbank Aktiengesellschaft as Senior Co-Lead Manager, Bank Julius Bär & Co. AG, Bank J. Safra Sarasin AG, Bank Vontobel AG, Basler Kantonalbank, BNP Paribas (Suisse) SA, Deutsche Bank Aktiengesellschaft, acting through Deutsche Bank AG Zurich Branch, Luzerner Kantonal Bank AG, Raiffeisen Schweiz Genossenschaft and Zürcher Kantonalbank as Co-Lead Managers.
Niederer Kraft Frey acted as transaction counsel. The NKF team was led by Capital Markets partner Daniel Bono, working with partner Markus Kronauer (Tax), partner Christina Rinne (Tax), senior associate Christine Hohl (Capital Markets) and associate Vanessa Witschi (Tax).