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| UBS warns of Q2 loss; plans to raise $3.5 bn |
| Press Trust of India / London Jun 26, 2009, 21:14 IST |
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Swiss banking major UBS is looking to raise 3.8 billion Swiss francs (about $3.5 billion) through issue of fresh shares and has warned of second quarter losses.
UBS would be offering 293,258,050 newly issued shares to a small number of institutional investors at a price of 13 Swiss francs per share.
"After deducting costs associated with the placement, the amount of new equity capital expected to be raised is approximately 3.8 billion Swiss francs," the bank said in a statement on Thursday.
In a separate statement, UBS has said it expects to incur a loss for the second quarter ending June 2009 mainly on account of credit and restructuring charges.
"Based upon preliminary results for April and May and estimated results for June, UBS expects to incur a net loss for its second quarter 2009. The majority of the expected loss is attributable to own credit and the restructuring charges that have already been announced," the statement noted.
The entity has been severely hit by the global financial turmoil and has posted significant losses in recent quarters. Last year, the Swiss government gave a lifeline of more than $5 billion to the bank.
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