Compagnie de Financement Foncier (Bloomberg Ticker: CFF) has completed its first Covered Bond issue of the year, with a 5-year/9-year dual tranche issue of 200 million Swiss francs in total, divided into 100 million CHF for each tranche. This overall size is significant on the CHF, a currency on which the depth and therefore the volumes that can be raised are much more modest than on the €uro.
This transaction is interesting for two reasons:
- issuing in a dual tranche made it possible on the one hand to satisfy two pockets of complementary demand, and therefore to raise a higher amount than on a single 7-year tranche and on the other hand to ultimately have a refinancing cost on an average duration of 7 years better than on a single tranche of this maturity,
- this is the first Covered Bond transaction in CHF from a €uro issuer since January 2024, the previous transaction in the market already being an issue by Compagnie de Financement Foncier.
This is, like all our operations in CHF, a pure diversification for the group and Compagnie de Financement Foncier with demand coming from domestic investors who have pockets and needs in CHF and would not come to EUR.
