Cembra lands $424M covered bond as it funds Santander deal
What's the deal? Cembra Money Bank has raised US$320.8M through a covered bond, with Deutsche Bank acting as lead manager. The auto-covered bond, guaranteed by Cembra Auto Finance, carries a 2.25-year term maturing on January 31, 2029, and a 0.9387% coupon.
Why now? The issue follows a US$229.2M senior-unsecured dual-tranche deal earlier in October, part of a brisk funding push. It comes as Cembra prepares to close its acquisition of Santander's Swiss auto-financing business, expected in November.
What's the endgame? That deal requires about US$623.3M of additional debt, and Cembra has said it should be earnings-accretive from 2027. The new bond helps bankroll that purchase.
What could go wrong? The bond's AAA issue rating from FitchDealroom has a profile for this one. Try Dealroom → and a 51-basis-point spread over the reference rate point to favourable, secured market access. The raise is one leg of the acquisition funding programme rather than a sign of a broader strategy shift.
The signal: At $424 million, the round sits well below the typical scale for a funding event — in the 32nd percentile by amount. For Cembra, it is a routine, well-priced step toward closing a deal designed to deepen its grip on the Swiss auto-finance market.
Read more: cash.ch
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