Switzerland-based Valiant Bank AG issued CHF500 million in covered bonds.
The notes carry a six-year term and a 0.125% coupon. They were sold at a 100.494% price, equivalent to five basis points below the mid-swap rate.
The Valiant Holding AG unit said the deal gives it a "broader base" to fund its mortgages and small and medium-sized enterprise loans, while reducing funding costs. The bank plans to issue about CHF500 million every year under its covered bond program.