Danske Bank Secures $130 Million Swiss Franc Bond through UBS Led Issue

Danske Bank has successfully raised CHF 110 million ($130 million) through an eight-year senior non-preferred bond led by UBS. The notes carry a 1.3975% coupon and mature on September 29, 2034, with a call option after seven years.

The bond was priced at par, offering 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.

Danske Bank tapped the Swiss franc market due to its strong credit ratings, A+ from S&P, A1 from Moody's, and AA from Fitch, which helped it secure sub-1.4% funding on the initial fixed leg.

The senior non-preferred notes sit lower in the repayment queue than standard senior debt, allowing banks to meet regulatory buffers for absorbing losses. This structure lets Danske Bank shore up its capital position while diversifying its funding base beyond its home market.