Business News

Published: Tuesday February 5, 2013 MYT 12:00:00 AM
Updated: Wednesday April 17, 2013 MYT 1:30:46 AM

UBS to buy back 5 billion Swiss francs in senior debt after revamp

ZURICH: UBS said it will buy back 5 billion Swiss francs (3.4 billion pounds) in senior debt in coming weeks, after a huge scale back at its investment bank dramatically reduced liquidity and funding needs.

"Our actions to prudently manage the composition of our liabilities will lower interest expense in the future," UBS said in a statement.

But UBS said the move to buy back the euro, Italian lira and U.S. dollar denominated debt could lead to a tightening of its credit spreads, and as a result could incur "significant" first-quarter own credit charges.

The buyback comes alongside a 1.89 billion franc fourth-quarter net loss due to a $1.5 billion fine for rigging benchmark interest rates and charges from a restructuring plan to shed 10,000 staff.

The loss compares with a 2.078 billion franc net loss forecasts by analysts in a Reuters poll. - Reuters

Tags / Keywords: News, Business, UBS, buy back 5 billion Swiss francs in senior debt, Business

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