LGT Bank Ltd. placed a CHF 350 m fixed-rate bond issue on Monday. The successful launch is the largest bond issue to date by LGT at the lowest coupon rate (0.2 percent).
The bond issued by LGT Bank Ltd. met with very strong demand from institutional investors. "With the successful launch of this bond, LGT has once again set a strong benchmark in the CHF bond market," says Josef Rüttimann, Head Interest Rate LGT Bank AG. "LGT’s excellent ratings and the stable performance of its outstanding bonds have enabled us to once again refinance in the capital market at highly attractive conditions." The bond enables LGT to secure long-term financing and further improves its stability. "Further to this, the strong interest from our investors confirms that we are on the right path and can continue to pursue our strategy long-term," says Rüttimann.
The newly issued ten-year bond has a yield to maturity of 0.2 percent. The bond will be listed on the SIX Swiss Exchange and traded on the secondary market as of 12 October 2016. It replaces the 8 December 2016 maturity date.