Bloomberg News

UBS Plans to Sell Contingent Capital in Near Future, CFO Says

February 07, 2012

Feb. 7 (Bloomberg) -- UBS AG, Switzerland’s biggest bank, plans to sell contingent capital “in the near future” to fulfill Swiss capital requirements, Chief Financial Officer Tom Naratil said.

The bank continues to prefer “non-dilutive” contingent capital, Naratil told reporters on a conference call from Zurich today, suggesting that UBS won’t issue contingent convertible bonds, which convert into shares when capital drops below a pre- defined level.

UBS said in November that by the end of 2012, it plans to have about 0.7 percent of risk-weighted assets, or about 2.4 billion Swiss francs ($2.6 billion) in contingent capital. This may increase to almost 5 billion francs by the end of 2013, according to slides presented at the bank’s investor day last November.

--Editors: Dylan Griffiths, Frank Connelly.

To contact the reporter responsible for this story: Elena Logutenkova at elogutenkova@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net


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