Corp Bonds - Swiss franc

Strong demand allows grid operator to tighten price and land inside fair value

All Swiss franc new issues are set to switch over to the market’s new risk-free rate after the summer break, local syndicate desks have announced.

Kantonsspital Graubünden sold a successful debut bond on Thursday, surprising bankers as it slipped in before the summer break.

Gazprom ended a three year absence from the Swiss franc market this week by attracting a large amount of retail participation in a Sfr600m ($653.4m) deal that launched at an attractive spread.

Gazprom is set to access the Swiss franc market this week to sell its first trade in the currency for over three years.

Intershop Holding hit the market on Wednesday for a Sfr100m ($110.5m) no-grow five year green bond — its first outing in the format.

Triple-B credit OC Oerlikon achieved a remarkable result on Monday, said bankers, as it issued a Sfr575m three tranche deal, which it will use to fund its acquisition of INglass. It was joined on screens by Pfandbriefbank's smallest deal since 2019.

Despite paying a chunky new issue premium, Deutsche Bahn was still able to score some attractive arbitrage with its latest Swiss franc deal this week, and with favourable pricing on offer for foreign names, bankers are confident more could follow.

Damien Aellen has been promoted to co-head of Credit Suisse’s Swiss franc bond syndicate desk.

Russian Railways ventured into the Swiss franc market this week to sell the first hybrid corporate bond in over two years, a sign of a maturing Swissie market, according to local market participants.

Verizon Communications, the US telecoms group, embarked on an almost $3bn niche currency bond issuing spree this week, which included the largest foreign Swiss franc bond since early 2018.

A flurry of Swiss franc issuance dusted the market this week, as domestic and foreign borrowers entered a more settled market.