Credit Suisse priced the Sfr150m ($165.5m) 0.75% September 2024 notes at 16bp through mid-swaps, in line with guidance of 16bp area.
The deal was announced as a minimum Sfr100m print and could have grown beyond Sfr150m, according to a banker close to the trade, but the issuer capped the maximum size of the deal.
The deal was priced at the most negative spread through mid-swaps of any Swiss franc denominated new issue from an international borrower this year, trumping a Sfr125m 0.875% July 2024 bond from the State of North-Rhine Westphalia which came at 15bp through swaps in July.
Demand for MuniFin’s trade was dominated by treasury accounts and pension funds drawn in by the high quality of the paper, according to a syndicate banker at one of the leads.
“These are the kind of investors that need top quality paper,” said the syndicate banker. “The yield is very low, of course, but if you need to buy this kind of paper then you have to take part.”
Demand was buoyed by an upcoming redemption of bonds — MuniFin has a Sfr500m 2.75% bond maturing on September 17.
The issuer also benefited from a favourable basis swap into euros, with limited supply from international issuers in Swiss francs over the summer causing the basis swap into euros to become more positive, allowing euro-funding issuers to offer more attractive levels for investors in Swiss francs without compromising on their euro funding levels.
However, a spike in supply from internationals on Tuesday — French oil company Total also sold Sfr800m of bonds — has negatively affected the basis swap, which could impact the potential for follow up supply.
“The level worked this morning,” said a syndicate banker at the lead. “This afternoon it wouldn’t have.”
