Crédit Agricole next bank (Suisse) SA establishes innovative Covered Bond Programme and issues CHF 200m Covered Bonds

On 18 August 2020, Crédit Agricole next bank (Suisse) SA established a CHF 2 billion Covered Bond Programme. The Covered Bonds benefit from a guarantee issued by its subsidiary CAnb (Switzerland) Mortgages Ltd., indirectly secured by a pool of Swiss residential mortgage loans. The Programme is based on an innovative, entirely Swiss law governed structure, and it represents another important milestone for the development of the Covered Bond market in Switzerland.

On 18 September 2020, Crédit Agricole next bank (Suisse) SA successfully completed the inaugural issuance of CHF 200 million Series 2020-1 0.070 per cent. fixed rate Covered Bonds due September 2029 (with extended maturity date September 2030). The Covered Bonds are listed on SIX Swiss Exchange and rated “AAA” by Fitch. Credit Suisse AG and Crédit Agricole CIB acted as Joint Lead Manager.

Niederer Kraft Frey advised Credit Suisse as Arranger on the overall structuring and Swiss law in relation to the Covered Bond Programme and the inaugural issuance as drafting counsel.

The NKF team was led by partner Daniel Bono, working with senior associates Christine Hohl and Giulia Ghezzi and associate Aurèle Bertrand (all Capital Markets). Tax advice was provided by partners Markus Kronauer, Christina Rinne (VAT), counsel Elga Reana Tozzi, associates Sven Kälin and Arbnor Sheholli.