UBS merges Asia-Pac equity, debt capital market divisions

HONG KONG: UBS Group is merging its equity and debt capital markets businesses in Asia Pacific in a move that comes as its powerhouse equities franchise faces a suspension in Hong Kong from leading initial public offerings (IPOs).

According to an internal memo seen by Reuters yesterday Gaetano Bassolino, head of the debt capital markets (DCM) business in the region, will become head of Asia Pacific capital markets.

“It is clear there are synergies that exist across ECM and DCM, such as overlapping investors and product crossover,” David Chin, UBS head of Asia Pacific corporate client solutions business, which covers investment banking, told staff.

A UBS spokesman confirmed the contents of the memo. ources within the bank told Reuters discussions about the change in structure had been under way for a while.

Several other banks operate a similar system in the region and globally in an effort to better coordinate the services they offer clients.

UBS’s internal reorganisation comes just days after the bank disclosed the Hong Kong securities regulator had blocked it from sponsoring IPOs for 18 months.

The suspension, which the Swiss bank is appealing, is not effective until its appeal has been ruled upon.

Sponsors in Hong Kong carry liability for misinformation contained in prospectuses but can expect the biggest share of the deal’s fee pool for their role of driving the transaction.