Swiss Prime Site issues its first bond in euros
According to the largest listed Swiss real estate company, the issue was heavily oversubscribed.
Swiss Prime Site has raised EUR 500 million with its first euro bond issue. The bond has a term of six years and a fixed annual coupon of 3.125 %. According to SPS, the issue was eight times oversubscribed. "At a time when Swiss real estate is considered a safe haven, we are proud to be the first Swiss real estate company to gain access to the European bond market," commented Marcel Kucher, the company's CFO and designated CEO, on the transaction. "This successful placement further diversifies our sources of financing and increases the financial flexibility and resilience of Swiss Prime Site." The issue will also broaden the investor base.
As is customary for Swiss issuers on the European bond market, the bond was issued via the issuing company ELM B.V. and guaranteed by Swiss Prime Site AG. The bond was rated A3 by Moody's, which corresponds to the company's issuer rating.
The coupon of 3.125 % on the euro bond corresponds to 0.87 % in CHF and thus roughly the interest rate expected for Swiss franc financing. "Compared to the average financing costs at the end of June 2025, the CHF interest rate is around 0.1 percentage points lower," says SPS. All cash flows during the term of the bond and the repayment in 2031 were converted into Swiss francs by means of currency hedging.
