Credit Suisse has become the first issuer to convert all its publicly placed covered bonds from hard to soft bullets after having gained consent on most of its issuance at a second noteholder meeting last Tuesday.

The Swiss bank launched the consent solicitation on 24 November, targeting six euro issues and one dollar, with a consent fee of 5bp. At a meeting on 16 December the resolution was passed in respect of a December 2015 euro issue as the required 75% majority was met, but the 75% quorum required was not met for the other series.

Credit Suisse then held a second meeting last Tuesday (30 December) and, achieving the necessary 25% quorums, passed the resolution with respect to the five other publicly placed issues – a 2039 issue that was privately placed and is narrowly held that had originally been part of the exercise was dropped from it ahead of the second meeting.

“We are very pleased with the outcome,” said Andrew Burton, European head of liability management at Credit Suisse. “It had never been tried before but we got a very constructive engagement from everyone.”

Other issuers have changed from issuing hard to soft bullets off the same programme, for example Swedish Covered Bond Corporation at the end of September, while ING last summer established a new soft bullet programme after having previously issued off a hard bullet one.

Michael McCormick, head of covered bond origination at Credit Suisse, said that other issuers could follow the Swiss bank’s example.

“It’s the first time investors have been actively asked to switch their holding as opposed to accepting a soft bullet instead of a hard bullet in the primary market from programmes that have changed maturity types for new issuance,” he said.

“I wouldn’t be surprised if other issuers now decide to do the same in situations where it could improve the efficiency of their funding programmes.”