The Swiss bank is offering investment notes tapping into demand for ESG-based projects.
UBS is offering investment notes that support sustainable development goals, linking to a new index that tracks standards set by the United Nations.
The Swiss bank is offering seven-year notes issued by the World Bank's International Bank for Reconstruction and Development. The notes will, for the first time, link to The Global Sustainability Signatories Index 7.5 per cent VC ER, which provides exposure to up to 100 UN Global Compact Signatories.
The notes will be available for UBS's investment banking clients globally and to its wealth management clients in the US and other select jurisdictions, the Zurich-listed bank said in a statement today. UBS is the exclusive underwriter of the note and exclusive provider of financial products referencing the Index, which was created by Sustainalytics and is administered by index provider Solactive.
Such a move is part of a trend of wealth management firms tapping into increased investor demand and interest in projects that fit environmental, social and governance standards, such as avoiding use of fossil fuels and child labour.
Upon maturity, IBRD will pay investors their principal plus any positive return of the Index. The notes have been rated AAA/Aaa by Moody's and S&P.
The bank said it will donate a percentage of its revenues from the notes to the UBS Optimus Foundation for projects linked to the UN Sustainable Development Goals.