Switzerland

Pfandbriefbank, the Swiss mortgage lender, raised Sfr754m ($748m) in a four tranche bond on Tuesday, drawing a strong demand from insurance investors in the Swiss domestic market.

Swiss franc issues from international borrowers have declined drastically in the last two weeks as the Swiss franc basis swap has moved more deeply negative, Swiss franc syndicate bankers told GlobalCapital on Tuesday.

In this round-up, Moscow Exchange sees fall in both spot and swap trading, South Korea deposits drop for sixth consecutive month, and the Swiss franc is now directly convertible with the onshore RMB. Plus, a recap of GlobalRMB’s top stories this week.

UBS enjoyed strong demand on Monday for its first holdco level senior debt in euros, with market participants divided on how its pricing compared to opco levels.

Julius Baer became the first foreign bank to issue a Singapore dollar-denominated additional tier one (AT1) this week. By doing so, the Swiss lender has joined a growing number of banks that are satisfying their capital needs through the country’s bond market, writes Rev Hui.

The Singapore dollar bond market is welcoming a new participant this week with Swiss lender Julius Baer going live on November 11 with an additional tier one trade – the first time a foreign bank is issuing an AT1 in the Lion City.

Banque Fédérative du Crédit Mutuel (BFCM) sold its first Swiss franc bond since 2014 on Monday, as international visitors to the market increase.

Swiss foods group Nestlé issued a €500m no-grow bond on Wednesday, clinching a 25bp spread over mid-swaps and still drawing a €1.6bn order book.

Glarner Kantonalbank (GLKB) has priced a junior subordinated Swiss franc additional tier one (AT1) bond on Friday, drawing interest from local retail investors.

Switzerland’s largest canton returned to the Swiss franc market after a long absence on Tuesday, with a 12 year deal that was heavily oversubscribed.

The Financial Stability Board has reported progress in implementing over-the-counter derivatives market reforms, but has also highlighted where it believes further work is needed and is seeking further market feedback.

Swiss foods group Nestlé issued a €500m no-grow bond today, clinching a 25bp spread over mid-swaps and still drawing a €1.6bn order book.