Switzerland

Market participants are confident that FIG issuance will pick up next week but there are concerns around secondary performance. They are likely to pay close attention to how this week’s deals from Goldman Sachs and Credit Suisse fare before marketing their own.

Credit Suisse sold a dollar-denominated additional tier one (AT1) bond on Wednesday. Despite hefty demand for the notes, the issuer only revised the pricing by a small margin as market turmoil increased through the day.

Swissport, the world’s largest provider of cargo and airport ground services, increased the loan portion of its debt raise at the expense of bonds as investors demanded steep yields in a volatile market.

Münchener Hypothekenbank (MunHyp) is introducing commercial paper to its existing Ecological ESG Pfandbrief programme.

Swissport, the world’s largest provider of cargo and airport ground services,has increased the loan portion of its debt raise at the expense of bonds amid a volatile August market.

Swiss investors who have been kicking their heels for the last month or so have been kept busy this week by Munchener Hypothekenbank (MunHyp), comfortably the most frequent international borrower in the Swiss franc market this year.

UBS Group skirted volatility in global financial markets to issue an 11 year non-call 10 year senior unsecured bond in dollars on Tuesday. The Swiss lender offered a small premium to investors, with a final spread of 140bp over US Treasuries.

Swiss firm responsAbility Investments has closed a $175m microfinance CLO via JP Morgan, revitalising an industry which last saw issuance before the financial crisis.

A refinancing package of €1.23bn has lifted some pressure off Swiss aviation services company Swissport and driven Moody’s to change its ratings outlook on the company from negative to stable. Parent HNA has had a fire sale of assets to combat a cash crunch, and a new portability clause is likely a sign of its desire to exit from the Swiss firm.

With new issue activity in Swiss francs now grinding to its usual summer halt, syndicate managers and investors are bracing themselves for another extension to the lower for longer rates environment.

Cofco International, a commodities trading unit of China’s agri-products company Cofco, has increased its sustainability-linked loan to $2.3bn after receiving commitments from 21 lenders.

Perhaps in anticipation of the summer shutdown, which appeared to have begun this week in the Swiss franc market, the hydroelectric power plant operator, Aarekraftwerk Klingnau (AKA) grasped the opportunity to launch its inaugural senior unsecured bond issue at the end of last week.