The FINANCIAL -- UBS announced that it is issuing USD 2 billion of subordinated loss-absorbing non-dilutive notes.The notes, which will qualify as tier 2 capital under Basel III standards and have a maturity of 10 years with an optional call at year 5, will pay a non-deferrable coupon of 7.25%.

According to UBS, The loss absorption trigger is set at a 5% common equity ratio, with the ratio calculated under the prevailing regulatory regime, being Basel 2.5 until year end 2012, and "phased-in" Basel III thereafter until those new rules become fully applicable on 1 January, 2019.

The notes were offered in minimum denominations of USD 200,000 and were widely placed with private and institutional investors in Asia and Europe.

Related Stories

• Western Union Completes Acquisition of the French Operations of Travelex Global Business Payments
• Modernisation of Moldova’s energy infrastructure
• Deutsche Bank enhances Agency Securities Lending in Asia