UBS to buy back EUR 1bn in bonds - Spear's Magazine

UBS to buy back EUR 1bn in bonds

UBS is to buy back bonds in a tender worth up to EUR 1 billion. It says the move will marginally increase its Tier 1 Capital ratio, and increase its flexibility to raise capital in the future.

UBS is to buy back bonds in a tender worth up to EUR 1 billion. It says the move will marginally increase its Tier 1 Capital ratio, and increase its flexibility to raise capital in the future.

The bank is making a tender offer, open until 25 March, relating to four lower tier 2 bonds with maturity dates between November 2015 and September 2019, and a notional value of around SwFr 7 billion.

The four subordinated notes targeted in the transaction currently trade at a significant discount to their original issuance price, UBS notes. If the transaction proceeds as expected, it will have a ‘small beneficial effect’ on the bank’s Tier 1 regulatory capital ratio.

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