ZURICH, June 17 (Reuters) – UBS will record a provision of around $900 million (840.15 million euros) to reimburse investors in Credit Suisse funds linked to British company Greensill Capital, which should allow them to recover 90% of what they are owed, the Swiss bank said on Monday.
The group is thus trying to resolve the problems it inherited when it bought its struggling competitor Credit Suisse in 2023.
These include a loss of 1.6 billion Swiss francs ($1.8 billion) due to the bankruptcy of 10 billion financing funds linked to Greensill, a group specializing in chain financing. supply, which filed for bankruptcy in 2021.
Also known as reverse factoring, these operations, presented as low risk, allowed companies to obtain liquidity from banks and funds such as Greensill Capital to pay their suppliers.
UBS said the Credit Suisse Supply Chain Finance Funds had made an offer to repurchase units or shares in the fund from its investors.
“Investors in the fund who choose to accept the offer will be redeemed at 90% of the net asset value determined on February 25, 2021, net of all payments made to investors in the fund since then, through sub-funds newly established feeders,” the group specifies in a press release.
“UBS AG expects to record a provision of approximately $0.9 billion on a consolidated basis in connection with the offering in the second quarter of 2024,” it said in a statement.
This amount will be taken from the $4 billion that the bank set aside to face possible litigation and regulatory costs when it bought Credit Suisse.
The bank said the offer is not expected to have a material effect on its financial results or its CET1 capital ratio, a measure of financial strength.
(Report by Noele Illien, French version by Diana Mandiá, edited by Blandine Hénault)
