ZKB's Bail-in Bonds are novel instruments which have been designed and issued on the basis of a new legal framework allowing Cantonal Banks to issue Total-Loss-Absorbing-Capacity (Gone-Concern Capital) Bonds. In the event that FINMA orders the partial or complete reduction of the bondholders' claims under the Bail-in Bonds, the bondholders are entitled to receive a Recovery Certificate. Such Recovery Certificate includes claims, subject to multiple conditions precedent, for subsequent future compensation payments for the full or partial reduction of the bondholders' claims under the Bail-in Bonds. The team was led by Benjamin Leisinger and René Bösch (both Capital Markets and Financial Market Regulation) and included Dieter Grünblatt (Tax) and Sofiya Shavlak (Capital Markets).

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June 8, 2023