Zurich, 9 November 2023 – UBS Group AG priced an offering of an aggregate of USD 3.5bn of Additional Tier 1 capital notes on 8 November 2023. The offering comprised two tranches: USD 1.75bn of 9.25% perpetual notes redeemable at the option of UBS after five years and USD 1.75bn of 9.25% perpetual notes redeemable at the option of UBS after 10 years. Each issue is a direct, unsecured, and subordinated obligation of UBS Group AG.
The notes will qualify as Additional Tier 1 capital under Swiss law and, accordingly, are subject to write-down upon occurrence of a Trigger Event or a Viability Event. The notes provide that, following approval of a minimum amount of conversion capital by UBS Group AG's shareholders, upon occurrence of a Trigger Event or a Viability Event, the notes will be converted into UBS Group AG ordinary shares rather than be subject to write-down. UBS Group AG believes that the conversion feature more closely aligns the terms of its Additional Tier 1 capital instruments with current market practice.
UBS Group AG
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