UBS Issues $3.5B in AT1 Bonds in First Issuance Since Credit Suisse Acquisition

By Miriam Mukuru

UBS Group issues $3.5 billion in Additional Tier 1 bonds in the first issuance since the acquisition of Credit Suisse.

It is comprised of two tranches of $1.75 billion of 9.25% perpetual notes redeemable at the option of UBS after five years and $1.75 billion of 9.25% perpetual notes redeemable after 10 years.

“Each issue is a direct, unsecured and subordinated obligation of UBS Group AG,” it said.

“The notes provide that, following approval of a minimum amount of conversion capital by UBS Group AG’s shareholders, upon occurrence of a trigger event or a viability event, the notes will be converted into UBS Group AG ordinary shares rather than be subject to write-down,” UBS added.

Write to Miriam Mukuru at miriam.mukuru@wsj.com

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