UBS buys back bonds

Repurchase highlights efforts to shore up sentiment

REUTERS March 23, 2023
A person walks in front of a logo of the Swiss bank UBS in Zurich, Switzerland March 20, 2023. PHOTO: REUTERS


UBS Group said on Wednesday it would buy back 2.75 billion euros ($2.96 billion) worth of debt it sold just days ago in a bid to boost confidence among bondholders rattled by its $3 billion rescue of rival Credit Suisse.

The bonds were sold on March 9 and their repurchase by UBS highlights the lender’s efforts to shore up sentiment since its government-backed rescue of Credit Suisse on Sunday.

UBS is buying back the bonds at the price at which they were sold rather than at market prices, compensating investors after a sell-off this week. “They’re trying to be friendly to investors who purchased just before the mess,” said Jerome Legras, head of research at Axiom Alternative Investments.

UBS in a statement said it was buying back a 1.5 billion-euro 4.625% fixed-rate note due March 2028 and a 1.25 billion-euro 4.750% fixed rate note due March 2032.

Published in The Express Tribune, March 23rd, 2023.

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