(News Bulletin 247) – UBS announced on Wednesday the launch of a buyback offer on two bond issues for a total amount of 2.75 billion euros that the Swiss banking group had launched last week.
These two issues, issued on March 17, consist of a tranche of 1.5 billion euros with a fixed rate of 4.625% due to mature in 2028 and another of 1.25 billion euros. 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 “cautious assessment” of recent developments which led to it having to buy its troubled peer Credit Suisse.
The establishment also evokes its desire to demonstrate its ‘long-term commitment’ vis-à-vis its credit investors.
Yesterday, Fitch placed UBS’s rating on negative watch due to the announced acquisition of Credit Suisse and the ‘uncertain implications’ of the deal.
The rating agency says it sees an execution risk for UBS, which could weaken its business and its financial profile due to the necessary restructuring of Credit Suisse in an environment deemed “increasingly difficult”.
Listed on the Zurich Stock Exchange, UBS shares fell 0.2% on Wednesday morning, while Credit Suisse shares fell 2.2%.
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