UBS appears to be optimizing its funding structure. The Swiss banking giant has opted for earlier optional redemption dates on both a bond and an AT1 instrument.

UBS is exercising its call option and plans to redeem Fixed Rate/Floating Rate Senior Callable Notes with a volume of USD 1,5 billion early on 15 July 2025, according to a statement issued Wednesday. The original maturity date was 15 July 2026. The notes carry a coupon of 6,373 percent.

The last trading day for the notes will be 11 July 2025. The bond (ISIN: US225401AY40 (144A) / USH3698DDR29 (Reg S)) was issued by the bank in 2022.

Half of Liabilities Maturing Within Three Years

In addition, UBS announced the early redemption of the Tier 1 Capital Notes issued in 2015, with a volume of USD 1.575 billion. These notes carry a coupon of 6,875 percent. The planned redemption date for the SIX-listed instrument is 7 August 2025, with the last trading day set for 5 August.

According to its first-quarter report, UBS had USD 162 billion in outstanding long-term capital market obligations as of the end of April. About 53 percent of that total is set to mature within the next three years.

(Graphics: UBS)