Homburger advises UBS on CHF 820m Covered Bond issue

In early October UBS has published the Base Prospectus for the establishment of its CHF 20 bn program for the issuance of Covered Bonds issued by UBS Switzerland and guaranteed by UBS Hypotheken Schweiz. The Covered Bonds issued under the program will be indirectly backed by a portfolio of mortgages from UBS Switzerland’s domestic mortgage pool.

Two days ago, UBS Switzerland has successfully completed its inaugural issuance of Covered Bonds under the program in an aggregate principal amount of CHF 820 m, consisting of CHF 350 m 1.820% Covered Bonds due October 2026 and CHF 470 m 2.035% Covered Bonds due October 2033. The Covered Bonds are governed by Swiss law and have been provisionally admitted to trading on SIX Swiss Exchange, and application will be made for definitive admission to trading and listing.

Homburger advised UBS Switzerland as issuer and UBS Hypotheken Schweiz as guarantor in respect of all transactional, regulatory and tax aspects of Swiss law. The team was jointly led by partners Benedikt Maurenbrecher (pictured right) and Stefan Kramer (pictured left) and included Daniel Hulmann, Daniel Junginger, Sofiya Shavlak and Mike Lerchmüller (all capital markets) as well as Stefan Oesterhelt and Philippe Gobet (both tax).

Also the firm Walder Wyss advised UBS as Sole Arranger and Initial Dealer in respect of all transactional, regulatory and tax aspects of Swiss law in relation to the Covered Bond Program and the inaugural issuance. The team was jointly led by partner Johannes Bürgi and managing associate Roger Ammann (both finance/capital markets) and included Thomas Meister (partner, tax) and Mathis Meier (trainee Lalwyer, finance/capital markets).