VP Bank raises $155M via seven-year bond issue
What's the deal? VP BankDealroom has a profile for this one. Try Dealroom →, the Liechtenstein-headquartered banking group, has placed a SFr130 million (about $155 million) senior non-preferred bond with a seven-year maturity. The bank said the issue drew strong demand from a broadly diversified investor base.
The terms: The bond carries a coupon of 1.85% and a yield of 1.8025%. Moody's assigned it an A3 rating.
What's the endgame? VP Bank said the transaction lengthens its funding profile and widens its sources of funding. It also helps the bank meet its minimum requirement for own funds and eligible liabilities (MREL), the loss-absorbing buffer banks must hold so they can be resolved without recourse to public money.
By the numbers: The issue follows half-year results published on August 25. First-half profit rose 12.7% year-on-year to SFr32.4 million, while assets under management increased 6.4% to SFr57.1 billion. Net new money totalled SFr1.4 billion, and the bank's Common Equity Tier 1 ratio rose to 26%.
Key hire: VP Bank has also been expanding in Asia. Its Singapore branch appointed Vincent Koo as chief risk officer, effective August 24.
The signal: The bond sits toward the larger end of comparable raises, underlining VP Bank's push to diversify funding and shore up regulatory buffers as it leans further into Asian growth.
Read more: wealthbriefingasia.com
Image credit: Generated with Gemini
