UBS rollover credit
The alternative for capital spending

The UBS rollover credit can be used to finance capital spending (not working capital) over the medium to long term. The principal, any repayments and the term are fixed contractually in advance for the entire duration of the facility. However, during its term the UBS rollover credit is used in the form of a series of short-term fixed advances. It is also possible to hedge against interest risk.

The key advantages:

  • Medium to long-term credit facility but with a short interest-rate commitment - advantageous if interest rates are falling.

  • The option to hedge against rising interest rates.

  • Interest is charged net, i.e. without credit commission.

Terms & conditions at a glance:

  • The rate of interest is based on money market rates in London (LIBOR) plus a margin.

  • The margin is set individually and depends on the client's creditworthiness.

  • Reduced interest is charged if the client provides readily realizable collateral, for example in the form of securities.

The risk of rising interest rates can be hedged using various hedging products (derivatives), which can be tailored to the client's risk tolerance. The hedging costs are either paid in advance as a one-off premium or paid off in the form of an additional margin supplement over the term of the UBS rollover credit.

Detailed information:

  • Usable currencies: Swiss francs and all common foreign currencies.

  • Minimum amount: CHF 1,000,000 or equivalent in foreign currency.

  • Maturity: 1 to at most 10 years.

  • Utilization: fixed advances with terms of 1-12 months (6 months is most common).

  • Termination: partial or full repayments, early terminations, etc. are possible at any time against payment of the contractually agreed early repayment indemnity plus processing costs. Ordinary, contractually fixed repayments are processed free of charge.

  • Statements of account: on maturity for fixed advances with terms of up to and including 6 months, quarterly at the end of each quarter (March, June, September and December) for fixed advances with terms of more than 6 months.

  • Interest accrual: charged directly to the account.

  • Disbursement: after all loan files have been put together as per the contractual agreement. N.B.: The rate of interest is fixed two value days before disbursement/renewal.

  • Repayment: as per the contractual repayment agreement.

  • Limitations: additional costs for hedging interest rate risk.