On April 5, 2023, Zürcher Kantonalbank priced its inaugural CHF 425 m Bail-in Bond issuance. 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 (TLAC) 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.

Homburger advised ZKB in co-operation with the legal department of ZKB since 2017 on the legislative process leading the new basis for Cantonal Banks to issue TLAC Bonds, structured and documented the new Bail-in Bonds and advised on all regulatory, legal and tax aspects. The team was led by René Bösch (Capital Markets and Financial Market Regulation) and included Dieter Grünblatt (Tax), Benjamin Leisinger (Capital Markets and Financial Market Regulation), Alexander Wherlock (Financial Market Regulation), Sofiya Shavlak and Irene Strocka-Metzler (both Capital Markets).

Contact

Nanding Susso / Marketing / [email protected]

April 6, 2023