UBS parent firm sells first bond since Credit Suisse deal

UBS Group is selling its first bond at the holding company level since the takeover of Credit Suisse in March, opening books on a three-part offering in US dollars.

The 4.25-year, six-year and 11-year bonds are all benchmark size, making the deal at least a total of US$1.5 billion, and are all callable a year before maturity, said a person familiar with the matter, who asked not to be identified because they were not authorised to speak about it. The offering is expected to price later on Monday (Sep 18).

The bank is offering a new issue premium of 15, 20 and around 30 basis points on the bonds, according to Bloomberg analysis.

The bond sale is the first from the holding company since the government-orchestrated takeover of Credit Suisse in March in which US$17 billion of Credit Suisse additional tier 1 bonds (AT1s) were controversially wiped out. UBS sold a US$3 billion, three-part offering earlier this month through its London branch.

A spokesperson for UBS declined to comment.

Meanwhile, UBS is also sounding out investors over a potential issuance of AT1s, the Financial Times newspaper reported on Monday. Bloomberg News reported last month that the bank was exploring a sale of the risky instruments, its first since the takeover and wipeout. Chief executive officer Sergio Ermotti said last month issuance may happen when “appropriate”. BLOOMBERG