Inaugural Swiss Franc Green Bond
The strong investor participation in EUROFIMA’s investor call about the new “Invest in Sustainable Mobility”-campaign set the successful path for the supranational organization’s 10-year 200 million Swiss Franc Green bond. The issuance on December 2 marks the first since EUROFIMA’s return to the Swiss capital market in 2020 and was led by Basler Kantonalbank, UBS and Zürcher Kantonalbank.
Launched with a “will not grow”-size of CHF 200 million and an initial guidance of SARON +4-7bps, the bond was - within half an hour – two times oversubscribed. With revised guidance at SARON +2-4 books closed at 9:45am and the deal was finally priced at SARON +2bps with a negative yield of -0.0225%. The very strong investor demand enabled the issuer to price with a negative new issue premium and a single digit greenium.
The demand was extraordinary strong from dedicated ESG investors representing the overwhelming part of the demand. Allocation was well balanced with 35% from Asset Manager , 21% from Treasury accounts, 17% from Pension Funds, 15% from Banks, and 12% from Insurance.