UBS Sets Aside $900 Million for Credit Suisse Funds Linked to Greensill — Update

By Adria Calatayud

UBS Group said it expects to book a provision of around $900 million on a buyout offer to investors in former Credit Suisse funds linked to now-defunct specialist lender Greensill Capital.

This marks the latest step by the Swiss financial group to move on from issues that hindered its once rival and led to its takeover in a deal engineered by Swiss authorities and completed a year ago.

UBS said Monday that the provision stems from a voluntary offer to Credit Suisse Supply Chain Funds investors. The assets held by the funds--for which Credit Suisse suspended redemptions and subscriptions in March 2021--were linked to Greensill, Credit Suisse said in its 2023 annual report.

UBS said the offer seeks to give fund investors certainty as well as an accelerated exit from their investments.

The provision will be booked by the group's key UBS AG unit in the second quarter, but isn't expected to have a material impact on the unit on a standalone basis or the results or the capital position of the group as a whole, it said. This reflects provisions UBS booked at the time of the acquisition of Credit Suisse, it added.

The bank said fund investors who accept the offer will get 90% of the net asset value of the fund as of February 2021. The investment will be managed as part of UBS's noncore and legacy portfolio, it said.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

June 17, 2024 03:49 ET (07:49 GMT)

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