Singapore's GIC says converts UBS notes into shares

SINGAPORE, March 5 Thu Mar 4, 2010 7:30pm EST

Related Topics

SINGAPORE, March 5 (Reuters) - The Government of Singapore Investment Corp (GIC) said on Friday it has converted its UBS (UBSN.VX) notes into ordinary shares, chalking up a loss of about 70 percent in the value of the stake it has in the Swiss bank.

"GIC confirms the conversion," a spokeswoman for the Singapore sovereign wealth fund said in response to Reuters' queries.

GIC had invested 11 billion Swiss francs ($10.22 billion) in mandatory convertible notes in UBS to support the Swiss bank during the financial crisis. Its investment is now worth less than half its original value. [ID:nSGE61A0CJ]

The loss is likely to draw fire from Singaporeans, who have been highly critical of GIC's sister wealth fund Temasek [TEM.UL] after it lost heavily betting on Western banks such as Bank Of America-Merrill Lynch (BAC.N) and Barclays (BARC.L). (Reporting by Kevin Lim, writing by Harry Suhartono, Editing by Valerie Lee)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.