The Liechtenstein-based bank’s seven-year issue carries a 1.85 per cent coupon and an A3 rating from Moody’s, and fits with European funding rules.

VP Bank, the Liechtenstein-headquartered banking group operating in a number of regions, including Asia, has placed a SFr130 million (about $160 million) senior non-preferred bond with a seven-year maturity, the bank said yesterday.

The bond carries a coupon of 1.85 per cent, with a yield of 1.8025 per cent.. VP Bank said the issue was placed with a broadly diversified investor base and attracted strong demand. Moody’s has assigned it an A3 issue rating

The bank said the transaction has lengthened its funding profile and widened its sources of funding. It is also helping VP Bank meet its minimum requirement for own funds and eligible liabilities (MREL), the loss-absorbing buffer banks must hold so that they can be resolved without recourse to public money.

The issue follows half-year results published on 25 August. VP Bank’s first-half profit rose 12.7 per cent year-on-year to SFr32.4 million, while assets under management increased 6.4 per cent to SFr57.1 billion. Net new money totalled SFr1.4 billion, an annualised growth rate of 5.2 per cent. The bank’s Tier 1 and Common Equity Tier 1 ratio rose to 26 per cent.

VP Bank has also been strengthening its Asian operations. Its Singapore branch appointed Vincent Koo as chief risk officer, effective 24 August.