MunHyp inaugural AT1 rounds off ‘perfect year’ in Swiss francs

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By GlobalCapital
28 Nov 2019

It is hard to think of a more suitable candidate to have opened the Swiss franc market for additional tier one (AT1) issuance to foreign borrowers than Munchener Hypothekenbank (MunHyp). With a loan book in Switzerland of just over Sfr5bn ($5.01bn), the Munich-based mortgage bank is one of the few international borrowers with a natural funding requirement in Swiss francs, which is why it has been a prolific issuer in the currency over the past year.

To date, this issuance has been confined to the senior unsecured and covered bond markets, with capital the missing piece in the jigsaw. That gap was plugged this week when MunHyp became the first non-Swiss borrower to issue Capital Requirement Directive IV-compliant AT1 — although Rabobank was in ...

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