Zurich (CH) — Vontobel is revolutionizing the growing market for financing with the first online platform Cosmofunding, which also allows securitization as a security for customized financing. This represents a decisive step towards the complete digitization of the capital market. Via Cosmofunding, public-sector entities such as municipalities, as well as SMEs, are to gain access to a broad base of institutional investors through Vontobel, according to the business idea behind the digital innovation. Vontobel’s long-standing market expertise and technology leadership in the platform business, together with the expertise of FINMA-recognized Swiss rating agency fedafin AG, enables borrowers and investors to create substantial added value through Cosmofunding.
The market for corporate and public-sector financing has changed significantly in recent years. Increasingly, the public sector is turning to shorter-term and cheaper financing via institutional investors, who are looking for investment alternatives due to the prevailing low interest rate environment. The result is growth in the private placement segment.
Vontobel is leveraging the opportunities offered by digitalization to revolutionize existing market structures and processes, thereby increasing transparency and reach in this area. Online platforms for private placements or loans are ideal because they bring together the interests of professional investors and borrowers quickly, transparently and cost-effectively:
Institutional investors thus have access to interesting financing projects from public-sector entities such as cities and municipalities that were previously not present on the capital markets. Through Vontobel’s new online platform cosmofunding , the public sector — as well as medium-sized SMEs — can reach a larger circle of professional investors and thus tailor their financing to their individual needs in terms of volume, term, form of financing and, due to the increased transparency, also the prices.
Vontobel has launched cosmofunding, the first online platform for private placements in Switzerland, which combines many years of market expertise with its own technological leadership to offer added value for end clients. “Behind cosmofunding stands Vontobel as a rock-solid and prudent Swiss financial services provider with proven fixed income expertise and a broad base of institutional investors from our advisory activities. Based on our many years of experience in the platform business, with cosmofunding we anticipate the needs of end clients such as automated securitization of financing in all major currencies and thus offer a fully automated and user-friendly process,” says Roger Studer, Head of Vontobel Investment Banking.
In this area, Vontobel works exclusively with fedafin, the independent, first and only FINMA-approved Swiss rating agency. “For many institutional investors, a fedafin rating is a prerequisite for concluding a private placement or a loan, as it provides them with security with regard to the creditworthiness of the issuer and the issue. In addition to currently more than 320 companies of various sizes, we cover 2,200 Swiss municipalities and cantons, which corresponds to a coverage of 95 percent of the market,” adds Dr. Adrian Oberlin, Managing Director of fedafin.
Cosmofunding is web-based and license-free. Market participants receive non-binding access to the platform via personal login, which, like all Vontobel platforms, meets the highest security standards. Debtors and capital providers can now register at www.cosmofunding.com. The go-live of cosmofunding will be on September 3, 2018.
Vontobel Investment Banking
Vontobel Investment Banking creates specialized financial solutions for the investment needs of private and professional clients. We follow a customer-centric digital business model, manage risks carefully, and drive our customers forward with compelling service packages. In doing so, it is central for us to understand our customers’ needs from the ground up. We use our expert knowledge to identify trend breaks, risks and opportunities at an early stage and use them to develop promising solutions for you. We do only what we know how to do and pursue opportunities that convince us. We make our decisions thoughtfully and act decisively. We are proud of our specialized range of products and services. It includes structured products, transaction banking, corporate finance, brokerage and solutions for external investment advisors as well as digital platforms. We regularly receive awards for our research expertise. This is how we create added value for you.