EQS Group-Ad-hoc: Leonteq AG / Key word(s): Agreement
PRESS RELEASE | LEONTEQ WINS TENDER FOR ISSUANCE AND DISTRIBUTION OF INVESTMENT SOLUTIONS FROM POSTFINANCE
Zurich, 27 April 2020
Leonteq AG (SIX: LEON) announced today that it has been awarded the contract by PostFinance for a cooperation in the field of structured investment products in a tender process.
In a comprehensive tender process, Leonteq prevailed over well-known issuers of structured products and, in April 2020, signed an agreement with PostFinance for cooperation in the field of structured investment products. In March 2017, Leonteq and PostFinance launched a pilot project to assess the market potential for PostFinance to issue structured investment products. In this pilot phase, more than 440 structured investment products with a turnover of around CHF 170 million were issued in monthly product series.
As part of the new cooperation agreed with PostFinance, Leonteq will provide all services along the entire value chain, including issuing, product documentation, hedging, market making, secondary market services and lifecycle management. PostFinance acts as guarantor and is responsible for selling the products in its own channels.
Lukas Ruflin, Chief Executive Officer of Leonteq stated: "We are very pleased to continue and expand our cooperation with PostFinance in the area of structured investment products. PostFinance's decision in favour of Leonteq underlines our excellent offering and our reputation as a recognised partner for structured investment solutions in a highly competitive environment."
Leonteq will distribute the products issued for PostFinance to its own clients in Switzerland. The product universe will include in particular, autocallables, (multi/barrier) reverse convertibles and capital protection certificates. The investment universe consists of over 900 shares (including indices) and important commodities. Products can be issued in four currencies and clients will benefit from automatically generated product documentation such as termsheets and factsheets, which will be available in four languages.
Daniel Mewes, Head of Investment Solutions at PostFinance said: "We are convinced that we have chosen the right partner in Leonteq. The cooperation will allow us to benefit from Leonteq's modern IT infrastructure and to complement our range of attractive investment solutions for our investment-oriented customers."
With 2.7 million customers and almost CHF 120 billion in client assets, PostFinance is one of Switzerland's leading financial institutions. As a market leader and with more than one billion payment transactions a year, it ensures a seamless flow of liquidity on a daily basis. PostFinance is a systemically important bank and is currently rated AA+ by the Standard & Poor's rating agency. As of 31 December 2019, total assets were CHF 126 billion and capital ratio was 19.3%.
This press release may contain specific forward-looking statements, e.g. statements including terms like "believe", "assume", "expect", "target" "forecast", "project", "may", "could", "might", "will" or similar expressions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may result in a substantial divergence between the actual results, financial situation, development or performance of the Company or any of its affiliates or subsidiaries and those explicitly or implicitly presumed in these statements. These factors include, but are not limited to: (1) general market, macroeconomic, governmental and regulatory trends, (2) movements in securities markets, exchange rates and interest rates and (3) other risks and uncertainties inherent in our business. In addition, currently, it is very difficult to provide a meaningful prediction on how the governmental actions in response to the ongoing outbreak of a novel coronavirus disease (COVID-19) and other COVID-19 related factors will affect Leonteq's operations and how long such measures will remain in place. The COVID-19 outbreak has caused, and may continue to cause, uncertainty, economic instability and a significant decrease of total economic output in the affected areas and globally. The impact of the COVID-19 outbreak on the general economic environment in the markets in which Leonteq operates remain uncertain and could be significant. Against the background of these uncertainties, you should not rely on forward-looking statements. Neither the Company nor any of its affiliates or subsidiaries or their respective bodies, executives, employees and advisers assume any responsibility to prepare or disseminate any supplement, amendment, update or revision to any of the information, opinions or forward-looking statements contained in this press release or to adapt them to any change in events, conditions or circumstances, except as required by applicable law or regulation.
End of ad hoc announcement
1027055 27-Apr-2020 CET/CEST