Swiss Francs

PKO Bank Polski issued in Swiss francs for the first time in five years this week amid an improving basis swap out of the currency that is opening up a window for deals.

Deutsche Bahn returned to the market after a two year absence with the longest dated Swiss franc bond from a German corporate. Swap costs have made it tricky for Deutsche Bahn to borrow in the Swiss currency. But the lead managers found a window at 13 years for the issuer to exploit.

Unrated jewellery company Folli Follie debuted in the Swiss franc bond market on Wednesday, having failed in a previous attempt — a sign that retail buyers are becoming more receptive, market participants said.

Commonwealth Bank of Australia (CBA) this week raised Sf450m ($462.1m) from the Swiss franc bond market in the largest single tranche Swissie bond by an Australian financial since 2009. The borrower took advantage of the downgrade of a clutch of regular Swiss franc issuers to sell its trade.

Chilean credit union Cooperativa del Personal de la Universidad de Chile (Coopeuch) joins the ranks of Chilean borrowers welcomed into the Swiss franc bond market. Thursday’s outing further illustrates that the love affair of the Chilean borrower and Swiss buyer not only endures but burns brightly.

The renminbi held its spot as the world’s fifth most active payments currency in August, according to Swift’s RMB tracker. The news came just a day after Swift said it will start displaying China’s Cross-Border Interbank Payment System’s (Cips) data on its system.

Münchener Hypothekenbank made its public Swiss franc bond market debut, raising Sfr160m ($164.8m) with a December 2024 bond this week. But, with few German financial institutions with natural franc needs, the possibilities of follow-on trades are few and far between.

Crédit Agricole issued a six and a half year Swiss franc bond on Thursday, opting for senior preferred in a bid to diversify towards Swiss investors.

The Swiss bond market welcomed Russian Railways back to the market after a five year absence this week.

Russian Railways will meet investors on Wednesday to discuss its first Swiss franc bond in five years.

Goldman Sachs opened the Swiss market in the middle of the summer holidays on Thursday, selling the largest US financial Swiss franc bond in the last two years — a consequence, bankers said, of clever timing from a respected name.

Nederlandse Waterschapsbank this week became the first European SSA to print in the Swiss franc market since 2015, followed by Municipality Finance two days later. Favourable moves in the euro/Swiss franc basis, alongside rising Swiss interest rates, opened a window for old borrowers to return.