VP Bank Secures SFr130 Million in Senior Non-Preferred Bond Issue

The bank reported strong demand from a broadly diversified investor base, successfully pricing the debt at a yield of 1.8025 percent. Beyond immediate liquidity, the move serves a strategic regulatory purpose: helping the group meet its minimum requirement for own funds and eligible liabilities, or MREL. This capital cushion is designed to ensure the bank can absorb potential losses independently, removing the need for public financial intervention.

This bond placement arrives on the heels of a positive financial showing for the first half of the year. Reported on August 25, the group’s profit climbed 12.7 percent to SFr32.4 million, while assets under management reached SFr57.1 billion. With a Common Equity Tier 1 ratio now standing at 26 percent, the bank is also continuing its geographic expansion, recently appointing Vincent Koo as chief risk officer at its Singapore branch.