UBS issues dollar AT1 bonds following Swiss regulatory pause

UBS is issuing dollar-denominated Additional Tier 1 bonds, seeking at least $500 million. This marks their first such sale since Switzerland paused rule changes for risky bank debt. The perpetual bonds, callable in late 2032, are seeing strong demand, with pricing potentially tightening to a 7.25%-7.375% coupon. This follows Switzerland's decision to halt proposed AT1 rule modifications. The issuance is notable as UBS had previously indicated its AT1 funding needs for the year were met. AT1 bond spreads are currently near record lows, supporting the deal.