Switzerland

Swiss Steel, the Swiss manufacturer of steel and steel products formerly known as Schmolz + Bickenbach, has unveiled the terms of a Sfr220m (€200m) rights issue, required to help the company improve its capital position.

BNP Paribas returned to the Swiss franc market to land a new senior non-preferred issue slightly inside its euro curve this week. In recent weeks, several foreign borrowers have tapped the market and, with tightening levels looking attractive, bankers are confident more could follow.

This week was the busiest of the year so far for bank senior supply in euros, as issuers took advantage of strong market conditions after posting full year results.

UBS found room for $5bn of new debt in the dollar market this week, starting with a “phenomenal” result for a new additional tier one (AT1) on Monday and ending with a three-part senior offering a day later.

Credit Suisse issued a two-part covered bond in Swiss francs on Monday, choosing to limit the deal sizes in order to ensure a tight spread and low yield.

Apollo Global Management has continued to selldown its stake in Watches of Switzerland, the UK luxury watch retailer, following a strong rally in the stock since its IPO on the London Stock Exchange in May 2019.

Credit Suisse took advantage of a ferocious rally in subordinated debt to land its lowest ever coupon for an additional tier one (AT1) in dollars this week. The deal was also the Swiss bank’s debut use of Sofr to hedge interest rate risk on new issuance.

Credit Suisse gave investors an opportunity to buy new additional tier one (AT1) paper in the dollar market on Wednesday, shortly after receiving a credit ratings upgrade from Moody’s.

Onex Corporation, the Canadian private equity company, sold the last of its shares in Swiss packaging company SIG Combibloc on Monday evening, ending the association it has had with the company since it bought it in 2014. The block sold was worth Sfr657m ($725m).

The green bond market is set to grow in Swiss francs, as domestic investors turn towards the product. This week, Swiss Prime Site, a local real estate developer, made use of this demand to sell one of the largest Swissie real estate bonds in over six years.

Mirabaud Asset Management, the investment arm of the Mirabaud Group, has hired a new head of Swiss equities to replace Paul Schibli who is retiring in 2021.

The Swiss Banking Association has asked the country’s financial supervisor to consider setting up a covered bond regulatory framework that would put structured covered bonds on a par with other legally based covered bonds, such as Swiss Pfandbriefe.