UBS opens books for first low-trigger CoCo issue

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Helene Durand,

UBS has opened an order book for the first low-trigger contingent capital issue from Switzerland on Tuesday.

The bank’s CFO indicated last week that UBS wanted to raise US$1bn from investors. Coupon guidance has been set at the 7.5% area for the 10 non-call five-year Tier 2 capital security which will be a test of investors’ appetite for contingent capital instruments that can be written down permanently

UBS/Reuters