The Swiss government will sell its entire 6 billion Swiss franc ($6.4 billion) stake in UBS AG, according to a regulatory filing.
In December, the Swiss government took a stake in UBS to boost the bank's capital; the stake was in the form of mandatory convertible bonds with a 12.5% coupon. As part of the government's sale, UBS will pay the government about 1.8 billion francs, the present value of remaining coupon payments, according to the filing.
Commenting on the sale in a statement, the Swiss National Bank said: “The placement of the shares resulting from the conversion of the (government)'s mandatory convertible notes is an indication of the market's confidence that (UBS)'s resilience has improved further.”
The sale of the government's stake does not affect the national bank's SNB Stabfund, which has purchased illiquid assets from UBS.