2023-11-09 18:42:16
Published on November 9, 2023 7:42 p.m. / Modified on November 9, 2023 10:03 p.m.
UBS announced Thursday that it had borrowed $3.5 billion through AT1 bonds. In March, these financial instruments hit the headlines when Credit Suisse AT1s with an initial value of 16 billion were canceled during the takeover of the bank by UBS. Holders of these risky bonds, also called «CoCo bonds», had lost everything. Nearly 3,000 of them have filed complaints in Switzerland or are participating in class actions in the United States.
The issuance of new AT1s by UBS – the first since the collapse of Credit Suisse – garnered 36 billion in purchasing intentions from investors. These new instruments earn 9.25% interest per year and, unlike those of Credit Suisse, they cannot be canceled in the event of a problem, but only converted into UBS shares.
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