Vontobel Subsidiary Raises SFr200 Million In Bond Issuance

Editorial Staff

28 March 2025

, 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 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.