Switzerland’s Quest for a Safe Haven for Crypto Products
Tokens such as cryptocurrencies have caused turmoil in the financial market. Regulators are trying to catch up on the latest developments and adapt 20th century legislation to match up with 21st century technology. In this context, the United States Securities and Exchange Commission (“SEC“) has taken enforcement action against two cryptocurrency exchange platforms, Binance and Coinbase, in an attempt to clarify U.S. law applicable to tokens. The Swiss regulators have taken a more pragmatic approach. This article sets out the current situation in the U.S. and then turns to the legal regime in Switzerland.
By Thomas Werlen / Simon Weber (Reference: CapLaw-2023-39)
Federal Council Submits Draft Legislation on the Introduction of a Public Liquidity Backstop (PLB) for Systemically Important Banks to the Swiss Parliament
By Benjamin Leisinger / Daniel Hulmann (Reference: CapLaw-2023-40)
Spin-off and Listing of Sandoz
On 4 October 2023, Novartis AG completed the spin-off of the Sandoz generics and biosimilars business, and Sandoz Group AG debuted as independent publicly traded company. The Sandoz shares were listed on SIX Swiss Exchange. The spin-off has been effected through a tax-neutral dividend-in-kind distribution of Sandoz shares to holders of Novartis shares and of Sandoz ADRs to holders of Novartis ADRs that that was previously approved by Novartis shareholders at an extraordinary general meeting. Sandoz is a European champion and a global leader in Generics and Biosimilars.
Autoneum Rights Offering
On 2 October 2023, Autoneum Holding AG, headquartered in Winterthur, Switzerland, and listed on SIX Swiss Exchange under the ticker symbol AUTN, completed its rights offering launched on 14 September 2023, with net proceeds of approximately CHF 100 million. The net proceeds will be used to partially repay the bridge loan which Autoneum entered into to provide financing for its acquisition of Borgers’ automotive business. Autoneum is a global leader in acoustic and thermal management for vehicles. It operates 67 production facilities worldwide and employs around 16,600 people in 24 countries.
Vontobel’s Issuance of AT1 Bonds
Vontobel has successfully placed new Additional Tier 1 bonds (AT1 bonds) with a nominal value of USD 400 million in two tranches of USD 200 million and a denomination of USD 200,000 each with funds managed by Apollo Global Management. The issue price of the AT1 bonds is 100 percent and payment occurred on 28 September 2023. The AT1 bonds have an expected Baa2 rating from Moody’s. Vontobel Holding AG is assigned an A2 issuer rating by Moody’s.
Raiffeisen’s Issuance of Senior Unsecured Bonds
On 28 September 2023, Raiffeisen Schweiz Genossenschaft successfully completed its Bond issuance in the amount of CHF 100 million. The bonds are traded and will be formally listed on SIX Swiss Exchange.
UBS’s Issuance of Fixed Rate/Fixed Rate Callable Senior Notes under its Senior Debt Programme
On 22 September 2023, UBS Group AG successfully completed its issuance of USD 1.25 billion in aggregate principal amount of Fixed Rate/Fixed Rate Callable Senior Notes due December 2027, USD 1.5 billion in aggregate principal amount of Fixed Rate/Fixed Rate Callable Senior Notes due September 2029 and USD 1.75 billion in aggregate principal amount of Fixed Rate/Fixed Rate Callable Senior Notes due September 2034 under its Senior Debt Programme. The Notes are bail-inable (TLAC) bonds that are eligible to count towards UBS Group AG’s Swiss gone concern requirement.
Equinix’s Inauguaral Issuance of CHF Bonds
On 12 September 2023, Equinix, Inc., a globally leading digital infrastructure company, successfully completed its inaugural Swiss issuance of CHF 300 m 2.875% bonds due in 2028. The Bonds were issued by Equinix Europe 1 Financing Corporation LLC and are fully guaranteed by Equinix, Inc. The offering of the Bonds was done by reliance on Regulation S under the U.S. Securities Act.
Nestlé’s Issuance of USD Notes
On 12 September 2023, Nestlé Holdings, Inc. successfully completed its issuance of USD 500 million 5.000% Notes due 2028, USD 500 million 5.000% Notes due 2030, and USD 500 million 5.000% Notes due 2033. The Notes are guaranteed by the Nestlé group’s Swiss parent company Nestlé S.A. The offering of the Notes was done in reliance on Rule 144A and Regulation S under the U.S. Securities Act.
Bond Issuance by Glarner Kantonalbank
On 9 August 2023, Glarner Kantonalbank successfully completed its Bond issuance in the amount of CHF 110 m, traded on SIX Swiss Exchange.