Singapore News

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Singapore to invest 10 billion into UBS

Posted by jtsmyth8 on December 10, 2007

Singapore government’s investment arm announced on Monday that it will inject almost US$10 billion (S$14.4 billion) into Swiss bank UBS, making it the firm’s single largest shareholder.

The Government of Singapore Investment Corp (GIC) said it would inject 11 billion Swiss francs (US$9.74 billion) into UBS, which on Monday announced further writedowns of around US$10 billion (6.8 billion euros) due to the US subprime mortgage crisis.

GIC said an undisclosed strategic investor in the Middle East is injecting an additional two billion francs into the bank.

‘We made this significant investment in UBS because we have confidence in the long-term growth potential of the bank’s businesses, particularly its global wealth management business,’ its deputy chairman and executive director, Tony Tan Keng Yam, told a news conference.

GIC has committed to subscribe to 11 billion Swiss francs worth of mandatory convertible notes that will pay a coupon of nine percent until conversion into ordinary shares about two years after issuance, UBS said. (story)

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