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(Bloomberg) — UBS Group AG is set to raise Additional Tier 1 capital in US dollars, its first foray into the market since Switzerland paused plans to tighten rules on the riskiest type of bank debt.
The offering is the first since the Swiss government decided in late April not to proceed, for the time being, with proposed adjustments to AT1 regulations, a decision that was seen as a win for bondholders. Lawmakers had proposed tougher tests on whether Swiss banks could pay interest on the notes and when they could replace them with new issuance.
UBS is one of the largest issuers of AT1 bonds. It last raised AT1 capital in US dollars back in January, when analysts at CreditSights said that regulatory and legal uncertainty could weigh on the lender’s spreads. A month later, it tapped the Australian dollar market, moving into a void created by the local regulator’s decision to phase out this type of debt for domestic banks.
A representative at UBS did not immediately respond to a request for comment.
