Open

Coming up

Don't miss

Replay


LATEST SHOWS

THE INTERVIEW

Gilles Kepel, Islamic and Arab world specialist

Read more

BUSINESS DAILY

Argentina braced for another debt default

Read more

DEBATE

Too Late for Sanctions? Pressure Mounts on Russia over Ukraine (part 2)

Read more

DEBATE

Too Late for Sanctions? Pressure Mounts on Russia over Ukraine

Read more

MEDIAWATCH

'What would you do?'

Read more

AFRICA NEWS

Ebola virus: Liberia shuts most border points

Read more

IN THE PAPERS

Netanyahu says Gaza operation will not end quickly

Read more

FOCUS

As France’s Carrefour pulls out, what next for India’s retail market?

Read more

#TECH 24

Internet of Things

Read more

  • Video: How tourism is helping Rwanda’s gorillas, ex-poachers

    Read more

  • Calls mount to ban France’s ‘violent’ Jewish Defence League

    Read more

  • Israeli strikes target symbols of Hamas power

    Read more

  • US says Russia violated arms treaty by testing cruise missile

    Read more

  • Argentina in last-ditch effort to avert default

    Read more

  • Karzai’s cousin killed in Afghan suicide attack

    Read more

  • Libya oil tanker fire blazes out of control

    Read more

  • In pictures: From Gaza to Mosul, bittersweet end of Ramadan for Muslims

    Read more

  • France offers asylum to Iraqi Christians

    Read more

  • Moroccan police arrest French al-Qaeda recruiter

    Read more

  • Israel warns of ‘prolonged’ campaign in Gaza

    Read more

  • French mayor files complaint against US father who risked kids’ lives on Mont Blanc

    Read more

  • French footballer Griezmann headed to Atletico Madrid

    Read more

  • Luc Besson’s sci-fi thriller ‘Lucy’ tops US box office

    Read more

  • Video: Slaviansk mourns mass grave victims

    Read more

Business

UBS to raise capital base by 2.5 billion euros

Text by NEWS WIRES

Latest update : 2009-06-26

Swiss bank UBS it will try to reinforce its capital base by 2.51 billion Euros by placing 293 million shares. Switzerland last year injected 3.9 billion Euros into UBS as part of a massive state aid package to stabilise the bank.

AFP - Swiss bank UBS said Friday it would try to reinforce its capital base by 2.51 billion euros (3.51 billion dollars) by placing over 293 million shares.

The shares will be placed with institutional investors at a price of 13 Swiss francs (8.59 euros, 11.89 dollars), raising 3.8 billion Swiss francs if fully subscribed.

The share issue will "help reinforce confidence in UBS and the place of Swiss finance," the bank said in a statement.

UBS said it was making the placement now in order to take advantage of market opportunities.

The share placement should allow the bank to raise its ratio of tier 1 core capital to nearly 11.9 percent on a pro forma basis from 10.5 percent as of March 31.

The bank said tier 1 core capital should in any case rise above 11.9 percent due to efforts to reduce risk-weighted assets.

The Swiss government welcomed the UBS share placement and pledged not to sell any shares it is entitled to obtain in UBS before August 4.

Switzerland last year injected six billion francs, then equivalent to 3.9 billion euros or 5.2 billion dollars, in UBS as part of a massive state aid package to stabilise the bank.

Since June 9, the Swiss government has been able to convert its mandatory convertible notes in UBS into shares.

Despite the pledge not to sell any shares until August 4, the Swiss government said in a statement it could exercise its right to convert the notes into shares at any time and it would make a decision "at the time it wants".

The bank said it expects to make a loss in the second quarter, the results of which are to be released on August 4, mostly due to loan writedowns and restructuring costs already announced.

Operating results should improve from the first quarter, mostly due to improved market conditions for the investment bank and reduced losses and depreciation high risk positions taken previously.

The leading Swiss bank said there continued to be a net outflow of funds from its wealth- and asset-management divisions.
 

Date created : 2009-06-26

COMMENT(S)