Government Gives Green Light For Another CHF 384 mln Eurobond Issue

On December 6, the Cabinet signed a decree ordering the Finance Ministry to place a second CHF 384 mln Eurobond issue. Oleksandr Klymchuk: The bonds will be fungible with the CHF Eurobonds the government placed in September, thus the amount of the issue increases to CHF 768 mln. The bonds are to mature on September 2018, they have a put option exercisable on Sept. 15, 2009 and a 3.5% coupon paying semiannually. In September the bonds were offered at a 2.6% discount to par value; the terms implied a yield to maturity at 3.77% and yield to put at 4.44%. We expect a similar discount this time.