Commentary & Deal Flow

Final Books €980m+. Peak book >€1.15bn (incl €30m JLM)
Benchmark: OBL 2.5% Apr-31. HR 99%
Hedge Deadline: 15:10 CET

Launched: 6NC5: €500m @ MS+70bp - Books >€1.15bn (incl €30m JLM)
Book Update: Books in excess of €1bn (incl. €30m JLM)
IPTs: 6NC5: MS+90/95bp

• Issuer: Zürcher Kantonalbank
• Ticker: ZKB
• Issuer LEI: 165GRDQ39W63PHVONY02
• Issuer Ratings: Aaa/AAA/AAA (Moody's/S&P/Fitch)
• Expected Issue Ratings: Aa2 (Moody's)
• Format: Reg S; uncertificated securities (Wertrechte). Bonds eligible as loss-absorbing debt instruments in the event of insolvency measures to meet the requirements for additional loss-absorbing funds under the National Regulations applicable to domestic systemically important banks.
• Status: The Bonds constitute direct, unsecured and subordinated obligations of the Issuer ranking pari passu with each other. In the liquidation or restructuring proceedings of the Issuer, the bondholders' claims against the Issuer under the Bonds shall rank as follows: (i) subordinated to all non-subordinated claims against the Issuer, including all deposits with the Issuer; (ii) pari passu among each other and with the claims of creditors of the Issuer under other bail-in bonds of the Issuer; and (iii) subject to FINMA Measures in restructuring proceedings (see below), senior to equity and similar instruments of the Issuer and to all other subordinated claims (including Additional Tier 1 and Tier 2 instruments) against the Issuer. In restructuring proceedings, FINMA may, in particular, order the full or partial reduction of bondholders' claims or the full or partial reduction of the Issuer's obligations under the Bonds without first having to write down the Issuer's equity.
• Pricing Date: 10-Jun-26
• Issue Date: 17-Jun-26 (T+5)
• Redemption Date: 17-Jun-32
• Optional Redemption Date: 17-Jun-31 (one-time call)
• Tenor: 6NC5
• Size: €500 million
• Interest Rate (Coupon): [●]% fixed rate p.a. until the Optional Redemption Date, payable annually in arrear. Thereafter, reset rate equal to the sum of one year EUR mid-swap and the margin of [●]%
• Interest Payment Dates: 17 June in each year, commencing on 17-Jun-27
• Day Count Fraction: ACT/ACT (ICMA)
• Business Day Convention: Following unadjusted
• Business Days: T2, Zurich
• Nominal Value: Nominal Value means the original nominal value of EUR 200,000 per Bond or, if FINMA has ordered the partial (but not full) reduction of the bondholders' claims or the Issuer's obligations under the Bonds in the restructuring plan in a restructuring proceeding concerning the Issuer pursuant to the Banking Act and, if applicable, other National Regulations, the nominal value per Bond still outstanding at the relevant time
• Early Redemption: Subject to the prior approval of FINMA (if then required), taking into account the National Regulations, the Bonds may be redeemed prior to the Maturity Date at the option of the Issuer in whole, but not in part, at the Nominal Value plus any accrued and unpaid interest thereon on the Optional Redemption Date, or upon the occurrence of a Tax Event or Regulatory Event
• Documentation: Standalone EUR documentation. Prospectus will only be submitted for review to a competent Swiss Review Body pursuant to Art. 52 FinSA after the offering has been completed
• FINMA Measures: The bondholder expressly acknowledges that FINMA may take measures in the course of restructuring proceedings under the Banking Act which may interfere with the rights of the bondholders, in particular the full or partial reduction of the bondholders' claims or the full or partial reduction of the Issuer's obligations under the Bonds (subject to the creditors' right to the issuance of Recovery Certificates by the Issuer) as well as all other measures to which FINMA is entitled under the then applicable financial market laws and ordinances, excluding the conversion of the Bonds into equity (the FINMA Measures)
• Waiver of the "No-Creditor-Worse-Off" protection: By acquiring a Bond, bondholders expressly waive the protection of Art. 30c para. 1 letter b Banking Act, according to which, in restructuring proceedings, the restructuring plan is not likely to place the creditors in a worse economic position than the immediate opening of bankruptcy proceedings ("No-Creditor-Worse-Off"). In the event that FINMA Measures are ordered, the Bondholder thereby waives any compensation, with the exception of the claim to the granting of Recovery Certificates (see "Entitlement to the granting of Recovery Certificates" below), and in the event of a subsequent liquidation of the Issuer, any claim to a liquidation dividend. They expressly acknowledge that they could be worse off in a restructuring proceeding of the Issuer than in a bankruptcy
• Entitlement to the granting of Recovery Certificates: In the event that FINMA orders the partial or complete reduction of the bondholders' claims or the Issuer's obligations under the Bonds in the restructuring plan in a restructuring proceeding concerning the Issuer, the bondholders are entitled to the granting of two Recovery Certificates with no par value for each Bond affected after the restructuring plan has been approved by FINMA
• No state guarantee / no set-off: The Bonds are not covered by the state guarantee of the Canton of Zurich. Offsetting with claims from the Bonds is excluded
• Use of proceeds: General corporate purposes
• Product Governance: Target market as defined by the manufacturers (EU MiFID II/ UK MiFIR product governance): eligible counterparties and professional clients only (all distribution channels). No EU PRIIPs key information document (KID) / UK PRIIPs KID/CCI product summary has been prepared as not available to retail in EEA or the UK
• Sales Restrictions: In particular, USA and U.S. persons and Italy as well as prohibition of sales to retail investors in the EEA and the UK as set out in the prospectus
• Joint Lead Managers: BNP Paribas, Commerzbank, UBS (B&D), Zürcher Kantonalbank
• Listing: SIX Swiss Exchange
• Denomination: €200,000 and €200,000 increments
• Primary clearing system: SIX SIS Ltd
• ISIN / Swiss Security Number: CH1515238637 / 151'523'863
• Governing law/ Place of J.: Swiss law / Zurich
• Books Subject: 13:00 UKT / 14:00 CET
• Timing: Books open, today’s business