UBS AG offered to repurchase some shares of its Puerto Rico bond funds after the commonwealth's debt has lost 16 percent this year.

The buyback program applies to funds solely managed by UBS, and offers would be at net-asset value or below, Karina Byrne, a spokeswoman for Switzerland's largest bank, said yesterday in an e-mailed statement. The Zurich-based firm has told advisers to contact clients who hold Puerto Rico closed-end funds and those with UBS Bank USA loans secured "in any part" by closed-end funds about the repurchase program, Byrne said.

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