Credit Suisse Switzerland establishes innovative Swiss Covered Bond Programme and issues CHF 250m Covered Bonds
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 2010.
On 16 July 2019, Credit Suisse Switzerland successfully completed the inaugural issuance of CHF 250 million Series 2019-1 0.000 per cent. fixed rate Covered Bonds due July 2029 (with extended maturity date July 2030). The Covered Bonds are listed on SIX Swiss Exchange and rated “AAA” by Fitch. Credit Suisse AG acted as Lead Manager, Bank Vontobel AG and Commerzbank Aktiengesellschaft (Zurich branch) as Senior Co-Lead Managers, Bank Julius Bär & Co. AG, Bank J. Safra Sarasin AG, Basler Kantonalbank, Deutsche Bank AG London Branch (Zurich branch), Raiffeisen Schweiz Genossenschaft and Zurich Cantonal Bank as Co-Lead Managers.
Niederer Kraft Frey advised on the overall structuring and Swiss law in relation to the Swiss Covered Bond Programme and the inaugural issuance as drafting counsel. The NKF team was led by partner Daniel Bono, working with senior associates Andrea Giger and Christine Hohl, associate Samuel Hochstrasser and junior associate Aurèle Bertrand (all Capital Markets). Tax advice was provided by partners Markus Kronauer, Christina Rinne (VAT) and counsel Elga Reana Tozzi.
Daniel Bono said: “We believe that the Swiss Covered Bond Programme by Credit Suisse Switzerland represents an important milestone for the development of the Swiss Covered Bond market and we are delighted to have had the opportunity to advise Credit Suisse on this innovative structure”.