LGT Bank Enters Swiss Franc Market with New Bond Offering
LGT Bank, based in Liechtenstein, has successfully issued a new Sfr150 million (Swiss francs) senior non-preferred bond. The issuance, which took place on Tuesday, January 13, 2026, carries a 1.45% coupon and is set to mature on February 11, 2036. This move adds to the active Swiss franc bond market, which has seen significant new issuance recently.
Key Details of the Bond Issuance
The bond was brought to market with the assistance of BNP Paribas and UBS, acting as joint lead managers. It was priced at 80 basis points over Saron, reflecting current market conditions. The issue price was set at 100.255%, resulting in a yield to maturity of 1.423%. The bond's ISIN is CH1512676961.
The instrument has received ratings of A3 from Moody's and A from S&P, while LGT Bank itself holds issuer ratings of Aa3 from Moody's and A+ from S&P. The bond is scheduled for liberation on February 11, 2026, and will be listed on the SIX Swiss Exchange from February 9, 2026.
Market Context and Strategic Importance
LGT Bank's latest bond issuance contributes to a robust period for the Swiss franc bond market, which has seen close to Sfr3 billion in new issuance during the week of January 16, 2026. This activity indicates strong investor demand for corporate and financial paper, offering opportunities to secure yield and spread.
The Principality of Liechtenstein, where LGT Bank is headquartered, utilizes the Swiss franc and maintains a customs union with Switzerland, making LGT Bank's offerings a familiar presence in the domestic Swiss bond index. This issuance underscores LGT Bank's continued engagement in the capital markets and its strategy to diversify its funding sources.
5 Comments
Comandante
Another bank taking on more debt. What's the real underlying need?
Mariposa
While LGT Bank's strong ratings provide comfort, the 'senior non-preferred' status means investors should still be aware of its place in the capital structure during a default scenario.
Comandante
Joint lead managers like BNP Paribas and UBS ensure good market access for LGT, suggesting a well-managed issuance. Still, the bond's pricing at 80 basis points over Saron indicates a tight spread, potentially limiting its attractiveness to some.
Donatello
This bond does offer LGT a diversified funding source, which is positive for the bank's stability, but for individual investors, the 1.423% yield over a decade seems quite modest in a rising rate environment.
Leonardo
Smart move by LGT! Diversifying funding is always a good strategy.