UBS to raise funds via share offering

UBS AG announced today that it will raise more than $15.5 billion of capital by issuing sharply discounted shares in an attempt to recover from mortgage-related losses suffered in the last year. The capital campaign will be the second time that UBS has sought money from investors since the global mortgage crisis began last year. In December, the Zurich, Switzerland-based bank received commitments for $11.5 billion from investors in the Middle East and Singapore in response to $10 billion in write-downs (InvestmentNews, Dec. 10). The bank has incurred more than $37 billion in write-downs in the last year, including $19 billion for the first quarter of this year. The completion of the new shares is expected to take place by June 17, UBS officials said in a statement.