For the first time in almost two years, Valiant has placed new covered bonds on the capital market. Together with Zürcher Kantonalbank, it successfully issued a new mortgage-backed bond with a term of five years and a coupon of 1.85%. Rating agency Moody’s is likely to award the bond a Aaa rating.
The new series has a yield of 1.85%. It will be traded on SIX starting 30 May 2023. Valiant has just under CHF 3 billion of covered bonds outstanding. Along with client deposits and central mortgage institution loans, they form the third pillar of funding for lending.
Valiant plans to continue issuing covered bonds on a regular basis.