Swiss Francs

Swiss investors’ thirst for yield was quenched in some style at the end of last week, when Russian Railways printed the largest Swiss franc transaction of the year from an emerging market borrower.

The Swiss franc new issue market sprang back to life this week, led by FIG borrowers.

Korean National Oil Company (KNOC) this week delivered the first post-summer Swiss franc bond from Korea, achieving a record low yield despite coming just ahead of a Swiss National Bank (SNB) policy announcement.

Bank of the Philippine Islands issued on Thursday a green bond in Swiss francs, which came at a negative yield.

Credit Suisse this week made “an important step in the transition away from Libor”, the bank claimed, as it placed an AT1 that it said was the first public issue in the Swiss franc market to use an alternative benchmark rate.

Mexican lender Banco Mercantil del Norte (Banorte) is looking to sell its third Swiss franc bond, breaking a two-week hiatus in cross-border issuance from Latin American borrowers.

When the Mont-Soleil solar power plant went into operation in early 1992 it was not just the first of its kind in Switzerland: it was the largest photovoltaic installation in Europe.

Well over Sfr1bn ($1bn) of Pfandbriefe and covered bonds was printed within three days this week, rounding off what bankers say turned out to be a surprisingly good first half of the year for the Swissie market.

Credit Suisse Switzerland issued its debut covered bond from its newly structured programme on Wednesday, achieving a very solid outcome in a short time frame. And the Swiss franc-denominated covered bond was quickly followed by another from the UK’s Nationwide Building Society.

Activity in the FIG sector in Swiss francs shifted from the international to the domestic market this week, with a little over Sfr850m ($857m) of new supply priced on Tuesday alone.

Zuercher Kantonalbank added momentum in the Swiss franc market for sustainable bond issuance at the end of last week, when it launched its second green bond. The proceeds of this Sfr200m ($198m) trade are for refinancing existing and future facilities under its Umweltdarlehen (environmental loans) programme, which dates back to 1992.

Korea Railroad Corp turned west on Monday, marketing a six year bond to Swiss investors.