UBS: buyback offer on two recent bond issues
(CercleFinance.com) - On Wednesday UBS announced the launch of a buyback offer for two bond issues totalling 2.
75 billion that the Swiss banking group launched last week.
The two bonds, issued on 17 March, consist of a 1.5 billion euro tranche at a fixed rate of 4.625%, maturing in 2028 and another of 1.25 billion euros with a coupon of 4.75% and a maturity of 2032.
In a statement, UBS explained that its decision was the result of a "prudent assessment" of recent developments that led it to have to buy out its troubled counterpart Credit Suisse.
The bank also said it wanted to demonstrate its "long-term commitment" to its credit investors.
Yesterday, Fitch placed UBS' rating on its negative watch list due to the announced acquisition of Credit Suisse and the "uncertain implications" of the deal.
The rating agency said it saw execution risk for UBS, which could weaken its business and financial profile as Credit Suisse needed to restructure in what it called an "increasingly challenging" environment.
UBS shares were down 0.2% on Wednesday morning, while Credit Suisse shares were down 2.2% in Zurich.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
75 billion that the Swiss banking group launched last week.
The two bonds, issued on 17 March, consist of a 1.5 billion euro tranche at a fixed rate of 4.625%, maturing in 2028 and another of 1.25 billion euros with a coupon of 4.75% and a maturity of 2032.
In a statement, UBS explained that its decision was the result of a "prudent assessment" of recent developments that led it to have to buy out its troubled counterpart Credit Suisse.
The bank also said it wanted to demonstrate its "long-term commitment" to its credit investors.
Yesterday, Fitch placed UBS' rating on its negative watch list due to the announced acquisition of Credit Suisse and the "uncertain implications" of the deal.
The rating agency said it saw execution risk for UBS, which could weaken its business and financial profile as Credit Suisse needed to restructure in what it called an "increasingly challenging" environment.
UBS shares were down 0.2% on Wednesday morning, while Credit Suisse shares were down 2.2% in Zurich.
Copyright (c) 2023 CercleFinance.com. All rights reserved.