UBS buys back CHF 1.5 billion in bonds
The struggling Swiss bank hopes to boost its capital.ZURICH - Swiss bank UBS on Thursday said it is offering to buy back about EUR 1.0 billion (CHF 1.53 billion, USD 1.34 billion) worth of bonds using available cash.
The bonds, which had an issue price of CHF 7.0 billion (USD 6.11 billion, EUR 4.54 billion) and maturity dates between November 2015 and September 2019, now trade at a "significant discount," said the bank.
"If the transaction proceeds as expected, it would have a small beneficial effect on UBS's Tier 1 regulatory capital ratio," added UBS.
The Tier 1 ratio is a measure of a bank's capital strength.
The tender period for the bonds will end on 25 March.
UBS is one of the worst-hit banks by the financial crisis. It posted a full year loss of CHF 20.9 billion for 2008.
AFP / Expatica