UBS announces potential market stabilization for new 5yr bond

Published 12/05/2025, 08:10
UBS announces potential market stabilization for new 5yr bond

LONDON - UBS Investment Bank has notified the market of a potential stabilization action connected to UBS Switzerland AG’s issuance of a new 5-year covered bond. The stabilization period, managed by UBS AG London Branch, is set to commence today and may continue until June 17, 2025.

The bond, guaranteed by UBS Hypotheken Schweiz AG, has been announced as an EUR benchmark offering, though specific details regarding the offer price and other terms are yet to be confirmed. The stabilization measure, in accordance with EC Regulation No. 2273/2003, aims to support the market price post-issuance, potentially leading to transactions that maintain pricing above natural market levels.

The stabilization manager may over-allot securities up to 5% of the aggregate nominal amount, with the intention of counteracting price volatility. However, UBS has indicated that there is no guarantee that stabilization activities will occur and, if initiated, they may be discontinued at any time.

This pre-stabilization notice is primarily directed at professional investors and high-net-worth individuals in the United Kingdom (TADAWUL:4280), with certain restrictions applying to other jurisdictions, including the United States. The securities in question have not been registered under the United States Securities Act of 1933 and, as such, cannot be offered or sold within the United States absent registration or an exemption from registration requirements. Consequently, no public offering will be made in the U.S.

The announcement serves as a precursor to potential market operations and is not an invitation or offer to underwrite, subscribe, acquire, or dispose of any securities. The information, based on a press release statement, is disseminated by RNS, the news service of the London Stock Exchange (LON:LSEG), and is authorized by the Financial Conduct Authority in the UK.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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