UBS' municipal-underwriting subsidiary has lost out on a Texas bond deal after the state comptroller included UBS Financial Services on a list of firms that boycott the fossil fuels industry.
According to AdvisorHub, Normangee Independent School District accepted a bid by UBS Financial Service to underwrite a bond deal sold via auction on August 8th. Because UBS was included on a list of companies that the comptroller considers boycotting the energy business, the bonds were resold. The school district returned to the auction on Sept 15th, selling $18.4 million of bonds won by RBC Capital Markets.
The state comptroller's list was triggered by a law that limits Texas governments from entering into contracts with firms that have curbed ties with carbon-emitting energy companies. As a result, UBS may face further difficulty working in the Texas municipal-bond market. A UBS spokesperson said that the bank has asked the comptroller to remove the company from the list.
Additionally, UBS is not the only bank facing such issues. Citigroup similarly lost a deal after being found to have discriminated against gun entities in violation of Texas law.
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