Clifford Chance

Clifford Chance advises UBS on an innovative low-trigger CoCo bond

Clifford Chance has advised UBS on the issue of US$2 billion Tier 2 Subordinated notes due 2022, in what is the first low-trigger Contingent Capital issue from Switzerland.  The bonds are written down permanently if the bank's common equity Tier 1 ratio falls below five per cent. This innovative bond structure is a response to the increased Swiss capital requirements.

The Clifford Chance team on the transaction was led by Simon Sinclair and included senior associates Yara Fadayel and Yinan Zhu.

Simon Sinclair said:

"Our role in this first of a kind hybrid capital transaction demonstrates our position at the forefront of this market and our ability to help deliver innovative legal solutions to our clients.  There has been much focus around the viability and marketability of CoCo structures and this benchmark transaction should help to build momentum around the product."