UBS Retires Nearly $10 Billion of Credit Suisse Legacy Debt

UBS has completed a significant debt reduction operation, retiring nearly $10 billion of Credit Suisse legacy bonds in one of its largest single buybacks since absorbing its former rival.

The Zurich lender issued nine simultaneous cash tender offers from September 2 to 10, exceeding its original $4.0 billion cap by lifting it to $5.8 billion due to strong investor demand.

The repurchased debt spans dollar, euro, and pound sterling denominations with maturities stretching to 2033 and coupons as high as 9.016%.

This operation is part of UBS's efforts to tidy up its liabilities in line with TLAC requirements and reduce interest costs ahead of potential stricter Swiss equity rules that could tie up an additional $24 billion to $42 billion in capital.