On September 24, 2015, UBS launched its inaugural issuance of "Bail-inable Bonds", a class of newly designed senior debt instruments. The USD 1.5 bn 2.95% Senior Notes due 2020, the USD 2.5 bn 4.125% Senior Notes due 2025 and the USD 300 mio Floating Rate Senior Notes (together, the "Notes") have been issued by UBS Group Funding (Jersey) Limited on September 24, 2015 on a Rule 144A/RegS basis and are guaranteed by UBS Group AG ("UBSG"). The Notes will be listed on the SIX Swiss Exchange Ltd.

The Notes are designed to meet the criteria for so-called Total Loss Absorbency Capacity (TLAC) instruments proposed by the Financial Stability Board (FSB) and, through structural subordination, to allow the absorption of losses by the noteholders through a statutory full or partial conversion and|or write-down ordered by the Swiss Financial Market Supervisory Authority FINMA ("FINMA") in the course of restructuring proceedings with respect to UBSG. As senior unsecured instruments, the Notes could only be fully or partially converted into equity of UBSG or written-down under Swiss law after shareholders of UBSG and holders of subordinated debt of UBSG. The structure and mechanics of the Notes permit that the instruments be fully or partially converted or written-down by FINMA prior to creditors of operating liabilities of the bank UBS AG. Inter alia, the Notes contain contractual mechanics to (1) bring the Notes into the jurisdiction of the resolution powers of FINMA to – based on the Swiss banking act – write-down the Notes or convert the Notes into equity of UBSG in whole or in part in the course of restructuring proceedings with respect to UBSG (automatic issuer substitution), (2) safeguard the recognition of the exercise of such a resolution power by FINMA (built into the Terms and Conditions of the Notes), and (3) provide for the possibility of the exchange of the Notes for newly issued notes if, after the completion of the Swiss restructuring proceedings with respect to UBSG, the Notes have not been fully written-down and|or converted into equity of UBSG and certain additional conditions are fulfilled.

Homburger advised UBS in the structuring of the transaction and on all regulatory and transactional aspects as to Swiss law of the offer, the issuance and listing of the Notes.

The Homburger team included the partners Benedikt Maurenbrecher (Financial Services) and Stefan Oesterhelt (Tax) as well as the counsel Lee Saladino (Financial Services) and associates Stefan Kramer and Daniel Hulmann (both Financial Services).