UBS Group AG raised A$1.25 billion ($824 million) by selling the riskiest type of bank bonds in Australia, tapping strong demand from cash-flush local investors.
The Swiss lender sold the Additional Tier 1 bond at a yield of 6.375%, according to a statement on Tuesday. That’s cheaper than the around 7% initial guidance it indicated Monday.
Issuing AT1s, which are also known as contingent convertibles or CoCos, may be appealing for the bank now amid strong demand for the higher yielding notes. UBS’s funding strategy is under stronger scrutiny as it faces the prospect of much higher capital requirements by ...
