Danske Bank taps Swiss market for $130 million bond led by UBS
What's the deal? Danske Bank has raised US$100.8M through a senior non-preferred bond led by UBS. The eight-year notes carry a 1.3975% coupon and mature on September 29, 2034, with a call option after seven years.
The terms: Priced at par, the bond offers a spread of 70 basis points over mid-swaps and 92 basis points over government rates. After the call date, the coupon shifts to the one-year swap rate plus 70 basis points.
Why now? The Danish lender is tapping the Swiss franc market at a time when it holds strong credit ratings — A+ from S&PDealroom has a profile for this one. Try Dealroom →, A1 from Moody's, and AA from FitchDealroom has a profile for this one. Try Dealroom →. Those grades helped it secure sub-1.4% funding on the initial fixed leg.
What's the endgame? Senior non-preferred notes sit lower in the repayment queue than standard senior debt, helping banks meet regulatory buffers for absorbing losses. The structure lets Danske Bank shore up its capital position while diversifying its funding base beyond its home market.
The bond lists on the SIX Swiss ExchangeDealroom has a profile for this one. Try Dealroom → from September 25, 2026, with a payment date of September 29. Notes come in denominations of US$183.3K, and the issue carries an option to increase the size.
The signal: Nordic banks continue to look to Switzerland for franc-denominated funding, drawing on deep demand from Swiss investors. UBS's lead role underscores its position as a go-to arranger for foreign issuers seeking access to the market.
Read more: cash.ch
Image credit: hanspoldoja
