LGT Bank Ltd. placed a fixed-rate bond issue of 275 million Swiss francs, thus replacing an upcoming maturity. With the successful launch of this bond, LGT has once again set a strong benchmark in the CHF bond market.
The bond issue met with strong demand, particularly from institutional investors. «This demonstrates that LGT is considered an extremely strong and stable bank», says Josef Rüttimann, Head Trading & Regulatory Bonds at LGT. The bank’s long-term focus, stability as well as outstanding ratings have once again enabled LGT to refinance in the capital market at attractive conditions.
LGT finances itself in part through bonds. This allows the bank to broaden its investor base and better meet its long-term commitments, as well as even better meet its regulatory requirements. The fact that it was possible to successfully replace maturing bonds is a very positive sign for LGT. «The strong demand reflects the high level of trust that investors place in LGT and confirms that we are on the right path», says Rüttimann.
The newly issued ten-year bond has a yield to maturity of just under 0.4 percent. The bond will be listed on the SIX Swiss Exchange on 10 May 2017, and will be traded on the secondary market. It replaces the 12 May 2017 maturity.