It is Valiant’s tenth successful capital market placement of mortgage covered bonds. The latest issue has a term of 9.4 years and a coupon of 0.1%. Rating agency Moody’s is likely to award it a Triple-A rating.
The tenth series is priced at 100.244 per cent with a yield at maturity of 0.074 per cent. It will be traded on the SIX starting 29 June 2021. Valiant has issued a total of CHF 2.74 billion in covered bonds. Alongside client deposits and central mortgage institution loans, they are a third source of funding for Valiant’s loans. In this way, it is able to further reduce its funding costs.
Valiant plans to continue placing covered bonds on a regular basis.