-UBS launches USD2bn Basel III-compliant notes.
Global Banking News - 22 February 2012
Swiss banking group UBS AG (NYSE: UBS) (ZHR: UBSN) (UBSN.VX) has said that it will issue USD2bn of subordinated, loss-absorbing, non-dilutive notes.
The notes, which will qualify as tier-II capital under Basel III standards, and have a maturity of 10 years with an optional call at year five, will pay a non-deferrable coupon of 7.25 percent. The loss absorption limit is set at a 5 percent common equity ratio, with the ratio calculated under the current regulatory regime, being Basel 2.5 until year-end 2012, and 'phased-in' Basel III thereafter, until the new rules become fully applicable on January 1, 2019.
The notes were offered in minimum denominations of USD 200,000 and were placed with private and institutional investors in Asia and Europe.
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