Emerging Markets Flood into Swiss Franc Bond Market

Emerging-market borrowers are tapping into the Swiss franc bond market, with several first-time issuers selling debt in the currency. This month, Chile sold CHF380 million ($458 million) in a two-part deal, following Mexico's Fomento Economico Mexicano SA, which issued its first-ever Swiss-franc bonds last week. Banco BICE, also from Chile, is reportedly meeting with investors to discuss a potential debt sale in the currency.

According to Bloomberg data, developing-world sovereigns and companies have sold approximately $3.9 billion worth of Swiss franc-denominated bonds so far this year, which is nearly triple the same period in 2025. This represents the fastest pace since 2019 but still a small fraction of the $610 billion raised by emerging borrowers in hard currencies.

Petar Atanasov, co-head of sovereign research at Gramercy Funds Management, notes that entering the Swiss-franc market gives sovereigns additional options, which is valuable in the current environment. He also highlights that high-quality emerging-market sovereign debt is looking attractive to local investors seeking yield due to Switzerland's zero policy rate.