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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.
“Today’s issue is unexpected,” wrote Simon Adamson, head of financials at CreditSights in a note to clients, citing the bank’s guidance at the end of April that it had completed its AT1 issuance plan for this year. The credit research firm upgraded its recommendation on UBS AT1s after the decision by Swiss authorities.
A UBS representative declined to comment.
