Swiss Bonds Demand Climbs as Banks Leave Dollar Assets

Swiss Bonds Demand Climbs as Banks Leave Dollar Assets

After a 24-year hiatus, Indian companies are poised to raise almost $1 billion of Swiss franc- denominated bonds, about a quarter of total overseas borrowing in 2011, as demand rises among European investors.

State-owned IDBI Bank Ltd. (IDBI) will meet Swiss investors next month in its bid to become the fourth Indian issuer this year to borrow in francs, according to data compiled by Bloomberg. Union Bank of India?s 3.375 percent franc bonds due August 2015 yield 109 basis points more than debt of similar maturities and ratings sold by Jona, Switzerland-based Holcim Ltd., the world?s second-biggest cement maker.

Source: Swiss Bonds Demand Climbs as Banks Leave Dollar Assets