UBS successfully issued new AT1 bonds, outperforming the market.
On Wednesday (11/8), UBS issued its first AT1 bonds since acquiring Credit Suisse under the mediation of the Swiss government in March this year. Since the issuance, the benchmark US Treasury yield has risen, but the prices of UBS’s new AT1 bonds have risen against the trend, and the credit spreads have narrowed significantly. Among them, the AT1 bond that can be redeemed in 2028 has narrowed by about 40bps since the issuance, and the AT1 bond that can be redeemed in 2033 has narrowed by about 51bps. The new bond performed better than the market. In addition, as UBS successfully sold the new AT1 bonds, which will strengthen the bank’s capital, the old AT1 bond that can be redeemed in 2027 by UBS also narrowed by about 54bps since the issuance of the new bonds.
Primary market new issues
UBS Group AG issued two US dollar-denominated junior subordinated AT1 bonds of $1.75 billion each, totaling $3.5 billion on Wednesday (11/8).
· Issuer Rating：Moody’s A3 / S&P A- / Fitch A
· Bond Rating：Moody’s Baa3 / S&P BB / Fitch BBB-
· Capital write-down：Full and permanent capital write-down if determined by the regulator or if the Tier 1 capital ratio falls below 7%
· Initial Price Guidance：PerpNC5 around 9.625%, PerpNC10 around 9.75%
· Issued Yield and Spread：PerpNC5 and PerpNC10 both priced at 9.25%, with issuance spread both around 475bps
Secondary market trading
· UBS 4.875% PerPNC4 bond is currently priced at around 85.24, yielding about 10.35%, and the spread has narrowed by about 54bps since the issuance of the new AT1 bonds.
· UBS 9.25% PerPNC5 bond is currently priced at around 100.95, yielding about 9%, and the spread has narrowed by about 40bps since the issuance.
· UBS 9.25% PerPNC10 bond is currently priced at around 102.14, yielding about 8.92%, and the spread has narrowed by about 51bps since the issuance.
瑞士銀行成功發行AT1新券，表現優於大盤
上週三（11/8）瑞士銀行發行了自今年3月在瑞士政府的斡旋下收購瑞士信貸至今的第一筆AT1債券；發行至今，基準美債利率走高，但瑞士銀行AT1新券價格逆勢上漲，且信用利差較發行時顯著收窄；其中，2028年可贖回的AT1債券較發行時收窄了約40bps，2033年可贖回的AT1債券較發行時收窄了約51bps。新券發行後，表現優於大盤。此外，由於瑞士銀行成功發售AT1新券將可強化銀行資本，帶動瑞士銀行2027年可贖回的AT1舊券較亦自新券發行後收窄了約54bps。
初級市場新券發行
瑞士銀行於上週三（11/8）發行兩筆美元計價AT1債券各17.5億美元，共35億美元
· 發行人信評：Moody’s A3 / S&P A- / Fitch A
· 債券信評：Moody’s Baa3 / S&P BB / Fitch BBB-
· 資本減記：經主管機關認定或一級資本比率低於7%，將全額永久性減記資本
· 初始定價指引：PerpNC5約9.625%，PerpNC10約9.75%
· 最終定價：PerpNC5、PerpNC10皆定價在9.25％，發行利差皆約475bps
次級市場交易
· 瑞士銀行（UBS）4.875% PerPNC4 AT1債券目前價格約85.24，收益率約10.35%，利差自新券發行後收窄約54bps
· 瑞士銀行（UBS）9.25% PerPNC5 AT1債券目前價格約100.95，收益率約9%，利差自發行後收窄約40bps
· 瑞士銀行（UBS）9.25% PerPNC10 AT1債券目前價格約102.14，收益率約8.92%，利差自發行後收窄約51bps