For Gic Negative Adventure With Ubs Shares

By Author: Italo Zanotti
Total Articles: 62
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The Singapore sovereign fund GIC (Government of Singapore Investment Corporation), who had participated in the capital increase of UBS, has converted its bonds into shares and now holds more than 6% of Swiss banks. At present, indicate a loss of 5 billion francs. In December 2007, GIC had injected 11 billion Swiss francs nell'UBS, what then amounted to almost 9% of the Swiss capital of the institution. Another two billion had been insured by a Middle Eastern investor, whose identity was not revealed. The operation was a breath of fresh air for the bank, then taken to the United States with the crisis of "subprime" related to the housing market. According to a document submitted to the SEC in February, the American Stock Exchange Operations Commission, the participation of GIC at UBS would amount to 6.6% due to dilution of shares due to other capital increases carried out in Zurich at the Institute. UBS has announced that it delivered 273 million shares, of which 230.7 million to Singapore. For now, investors in the transaction closes loss. Calculating the titles during the current 16.12 francs, the fund package in Singapore ...
... is equivalent to 3.7 billion francs, then with a loss of 7.3 billion. However, as UBS has had to pay an annual interest rate of 9%, the GIC has received just under 2 billion of interest, thus reducing the loss to 5.3 billion francs. The coupon of 9% would also serve to indemnify the fund against any loss of value of the action, which at the time the loan was worth 55 francs. After this conversion, the fund of Singapore became one of the big Swiss bank shareholders, along with funds Chase Nominees Ltd, which owns 11% and 6 DTC (8.42%).
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