Financial Results
Vontobel Subsidiary Raises SFr200 Million In Bond Issuance
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The Zurich-listed group said its issuance attracted very strong demand.
Bank Vontobel,
a wholly owned subsidiary of Switzerland’s Vontobel, announced yesterday
that it has raised SFr200 million ($226.3 million) via a senior
unsecured bond.
The firm said its issuance of a five-year bond, listed on
Switzerland’s SIX exchange, “attracted very strong investor
demand.” The bond carries an A2 rating from Moody’s.
“This transaction establishes Vontobel’s presence in the [Swiss
franc] senior bond market, adding diversification, stability, and
flexibility to the company’s funding structure while reaching a
broader investment base,” it said.
“Following our successful private placement of an AT1 in 2023,
this transaction diversifies our funding sources and enhances our
financial flexibility as we continue to execute our long-term
strategy,” Thomas Heinzl, Vontobel’s chief financial officer,
said in a statement.
(AT1, or Additional Tier 1 bonds, are a type of debt instrument
issued by banks to strengthen their capital base. They are
designed to be riskier than traditional bonds, offering higher
interest rates to compensate investors for this added risk. In
2023, holders of AT1 bonds issued by Credit Suisse
were wiped out in its “shotgun wedding” with UBS, causing
anger from bondholders and concerns about the impact on this
market.)
Among recent developments, in early January, Vontobel
completed its acquisition of the client book from fellow Swiss
firm IHAG Privatbank, which oversees SFr3 billion ($3.53 billion)
of client money.
In early February this year, the Swiss firm said it delivered
pre-tax profit growth of 32 per cent in 2024 on a year before
SFr354 million. Operating income rose 9 per cent.