ZURICH: UBS AG said on Thursday it had successfully completed a previously announced cash tender offer to buy back senior, subordinated debt and covered bonds worth about 16 billion Swiss francs ($16.08 billion) as it seeks to benefit from lower interest rates.

UBS expects to record an expense in the fourth quarter of 2015 related to this transaction of about 272 million Swiss francs, Switzerland's biggest bank said in a statement.

It said it expected to recover the expense in just over 1-1/2 years primarily through reduction of future interest expenses from purchased bonds.

Copyright Reuters, 2015