UBS Group AG has decided not to participate in a significant debt swap transaction involving Barbados, which aimed to refinance $300 million of the Caribbean nation's debt.

The Swiss bank was initially part of a consortium for the deal but ultimately withdrew after a senior banker, who specialized in such financial arrangements, left the bank.

Sources familiar with the situation indicated that UBS's absence in the final transaction was directly linked to the departure of the key manager, which had an impact on the bank's role in the innovative debt restructuring process.

This situation highlights the potential vulnerabilities in financial partnerships when key personnel leave, especially in complex negotiations like sovereign debt swaps.