The Canton of Zurich has successfully issued its inaugural CHF 100 million bond

The Canton of Zurich has successfully issued its inaugural CHF 100 million bond, marking a milestone in allowing settlement with digital central bank currency through the SIX Digital Exchange (SDX).

This significant step is part of the Swiss National Bank's Wholesale hashtag#CBDC pilot project, an initiative that saw active participation from SDX member banks including BCV - Banque Cantonale Vaudoise, Basler Kantonalbank, Commerzbank AG, Hypothekarbank Lenzburg AG, UBS, and Zürcher Kantonalbank.

This bond boasts an 11-year maturity and a 1.45% coupon, representing a partial refinancing. The transaction was orchestrated by Zürcher Kantonalbank in collaboration with UBS and Raiffeisen Switzerland, all executed in adherence to precise terms and conditions:

• Amount: CHF 100 million (expandable)
• Coupon: 1.45%
• Issue price: 100.456%
• Maturity: 11 years (until December 1, 2034)
• Rating: AAA (S&P)
• Listing: SDX & SIX (commencing December 1, 2023)

This issuance strategically supports innovative financial market infrastructures and aligns seamlessly with the cantonal government's digitalization strategy.

Come December 1, the bond will be tradable using SNB's wholesale CBDC franc on the SIX Digital Exchange.