Zurich (awp) – Valiant Bank has launched a new Covered Bonds program. As part of a private placement, it placed 20 to 20 million Swiss francs of securities covered by mortgages.
According to Monday evening’s press release, this is the first installment of a new Covered Bonds program. This tranche is secured by mortgages and has a duration of 1.022 years for a coupon of 0.45%. It should receive a Aaa rating from Moody’s. The bonds are mostly covered by mortgages on residential properties in Switzerland.
The operation should enable Valiant Bank to ensure its long-term refinancing on the capital market. Along with customer funds and pledged loans, Covered Bonds are the third source of refinancing of its loans by the bank, which plans to place them regularly.
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