It is Valiant’s nineth successful capital market placement of mortgage covered bonds. The latest issue has a term of 10 years and a coupon of 0.1%. Rating agency Moody’s is likely to award it a Triple-A rating.
The ninth series is priced at 100.524 per cent with a yield at maturity of 0.047 per cent. It will be traded on the SIX starting 6 may 2021. Valiant has issued a total of CHF 2,53 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.