UBS AG announced the terms of its planned new issue to raise almost 16 billion Swiss francs ($15.3 billion) in fresh capital.

Shareholders will be allotted one subscription right for each existing share held. The exercise of 20 subscription rights will entitle the holder to subscribe for seven new shares at a price of CHF 21.00 per new share, a significant discount to its closing price yesterday of CHF 30.64. This is expected to translate into gross proceeds of approximately CHF 15.97 billion.

The public offering of 760,295,181 new shares was fully underwritten by a syndicate of banks (led by JPMorgan, Morgan Stanley, BNP Paribas and Goldman Sachs) on April 1 and the related capital increase was authorized by the shareholders of UBS.

Subscription rights will be traded from May 27 through June 9 on SWX Europe and the New York Stock Exchange. The new shares will be listed on the SWX Swiss Exchange, NYSE and the Tokyo Stock Exchange on June 13.