What does "award procedure" mean for a Swiss federal loan?

It is the standard method by which the Confederation issues government bonds. Investors submit price and quantity offers, and the Federal Office of Finance distributes the available loans to the most competitive offers. In the case of 9 September 2026, the first loan received CHF 223,240 million of offers out of 161,240 available (coverage 138%), while the second received 349,090 million out of 207,390 available (coverage 168%).

What is the difference between the interest rate (0.875%, 0.5%) and the annuity (0.595%, 0.560%)?

The interest rate (coupon) is the one declared on the loan. The actual annuity depends on the issue price: if you pay more than 100 (as in the first loan at 103.95%), the annuity will be lower than the coupon. If you pay less than 100 (as in the second one at 98.25%), the annuity will be higher. It's the actual return you get at the time of purchase.

How does this issue affect my pension fund (LPP/BVG)?

Indirectly but concretely: Your pension fund probably invests a portion of the portfolio in Swiss government bonds, including newly issued federal loans. When the Confederation issues bonds at stable rates, this helps to ensure predictable returns in your pension account in the medium to long term, even if the daily impact is not visible.

When can I buy these loans as a saver?

The award procedure (9 September 2026) is intended for institutional investors and banks. The release (settlement) takes place on September 23, 2026. After this date, loans are available on the secondary market for ordinary purchase through commercial banks, financial intermediaries and trading platforms authorized by FINMA.

Are Swiss federal loans really safe?

Yes, they are among the safest investments in the world. The Swiss Confederation has an AAA credit rating at all major rating agencies (Standard & Poor's, Moody's, Fitch). The risk of insolvency is virtually zero. The compromise is a modest return (0.875% and 0.5% in this case) compared to bonds with higher risk, but it ensures stability and predictability.

Issuance of federal loans: CHF 368.6 billion (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 9 September 2026

Swiss trading room with financial terminals and Swiss francs representing federal economic management

The Swiss Confederation issued two federal loans on 9 September 2026: CHF 161.240 million at 0.875% until June 2041, and CHF 207.390 million at 0.5% until May 2058. Total volume of CHF 368.630 million.

Context

In Brief

Confederation issues two loans on 9 September 2026 for CHF 368,630 million
First loan: 0.875% until 24 June 2041; second: 0.5% until 30 May 2058
Exceptional demand: coverage at 138% and 168% respectively
Release scheduled for 23 September 2026

Key Facts

What: Issuance of two Swiss federal loans through auction procedure
When: 9 September 2026; settlement 23 September 2026
Where: Swiss Confederation (managed by Federal Finance Office)
Who: Swiss federal administration
Total amount: CHF 368,630 million
Interest rates: 0.875% (first loan) and 0.5% (second loan)
Maturity dates: 24 June 2041 and 30 May 2058

The Swiss Confederation issued two loans through an auction procedure on 9 September 2026, for a total amount of CHF 368,630 million. This is an ordinary financing operation of the Confederation, managed by the Federal Finance Office (EFV), which allows the federal administration to finance itself on international markets at favorable conditions.

First Loan: 0.875% until June 2041

The first loan has an interest rate of 0.875% and matures on 24 June 2041. The issued amount is CHF 161,240 million, at an issuance price of 103.95%, corresponding to an annual yield of 0.595%. The loan recorded total subscriptions of CHF 223,240 million, with a coverage ratio of 138% (demand exceeding supply). Allocations at the lowest price tier reached 100%, while non-price-indicated bids amounted to CHF 112,940 million. This loan will be settled on 23 September 2026 and has been assigned the provisional ISIN CH1544304137, and is fungible with ISIN CH1544304103.

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Operational details

Economic context and significance of interest rates

Interest rates on Swiss federal loans reflect the economic strength of the Confederation and the decisions of the Swiss National Bank (SNB) regarding monetary policy. The 0.875% of the first loan offers a modest but stable return for those investing in government bonds over the medium to long term (15 years), while the 0.5% of the second represents an ultra-long-term financing source over 32 years, typically intended to cover federal infrastructure projects with a very long time horizon.

The difference between the stated interest rate (coupon) and the actual yield depends on the issue price. In the first loan, the price of 103.95% (above par value of 100%) lowers the yield to 0.595%. In the second, the price of 98.25% (below par) slightly increases the yield to 0.560%, partially compensating for the low coupon.

Who purchases Swiss federal loans

Purchasers of these securities include commercial banks, insurance companies, occupational pension funds (LPP/BVG), institutional investors and private savers with a conservative profile. Swiss pension funds — which manage workers' contributions for mandatory pension insurance — allocate a significant portion of their portfolio to Swiss government securities, perceived as free from insolvency risk and fundamental to ensure stable returns to generations of retirees.

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Key points

How to invest and inform yourself about federal loans

If you are interested in understanding where the Confederation finances itself or evaluating where to allocate your savings, here are the resources and practical steps to guide you.

Official access to data

All technical details and the calendar of future issues are available through the Federal Finance Office (EFV) at admin.ch. The portal provides:

Complete historical data on past issues and realized yields
ISIN numbers and technical specifications for each loan
Indicative calendars for future issues
Information on legal restrictions for selling and trading

Purchase channels for retail savers

Swiss federal loans can be purchased through: 1. Swiss commercial banks: access during the award procedure (usually reserved for large investor clients, but banks often allow indirect access through funds) 2. Financial intermediaries authorized by FINMA: asset management companies and online banks 3. Trading platforms: Swiss and international secondary bond markets

Most retail savers access these securities indirectly, through low-risk Swiss bond funds, conservative mixed funds, or automatically in their occupational pension portfolios (LPP).

Timeline and step-by-step

September 9, 2026: Award procedures launched for institutional investors September 23, 2026: Settlement of the two loans After September 23: Availability on the secondary market for ordinary purchases and sales

If you wish to explore investment options in quality Swiss bonds, your bank or financial advisor can offer you personalized scenarios based on your risk profile and time horizon.

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Frequently Asked Questions

What does "award procedure" mean for a Swiss federal loan?: It is the standard method by which the Confederation issues government bonds. Investors submit price and quantity offers, and the Federal Office of Finance distributes the available loans to the most competitive offers. In the case of 9 September 2026, the first loan received CHF 223,240 million of offers out of 161,240 available (coverage 138%), while the second received 349,090 million out of 207,390 available (coverage 168%).
What is the difference between the interest rate (0.875%, 0.5%) and the annuity (0.595%, 0.560%)?: The interest rate (coupon) is the one declared on the loan. The actual annuity depends on the issue price: if you pay more than 100 (as in the first loan at 103.95%), the annuity will be lower than the coupon. If you pay less than 100 (as in the second one at 98.25%), the annuity will be higher. It's the actual return you get at the time of purchase.
How does this issue affect my pension fund (LPP/BVG)?: Indirectly but concretely: Your pension fund probably invests a portion of the portfolio in Swiss government bonds, including newly issued federal loans. When the Confederation issues bonds at stable rates, this helps to ensure predictable returns in your pension account in the medium to long term, even if the daily impact is not visible.
When can I buy these loans as a saver?: The award procedure (9 September 2026) is intended for institutional investors and banks. The release (settlement) takes place on September 23, 2026. After this date, loans are available on the secondary market for ordinary purchase through commercial banks, financial intermediaries and trading platforms authorized by FINMA.
Are Swiss federal loans really safe?: Yes, they are among the safest investments in the world. The Swiss Confederation has an AAA credit rating at all major rating agencies (Standard & Poor's, Moody's, Fitch). The risk of insolvency is virtually zero. The compromise is a modest return (0.875% and 0.5% in this case) compared to bonds with higher risk, but it ensures stability and predictability.