UBS makes redemption offer to Greensill fund investors
Published: Monday, Jun 17th 2024, 08:50
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UBS wants to clear the air in the Greensill case. The big bank is making a voluntary redemption offer to investors in the "supply chain financing funds" that are in liquidation.
The "Credit Suisse Supply Chain Finance Funds" will make an offer to its investors to redeem fund units, according to a statement from UBS on Monday. Investors could thus receive 90 percent per unit of the net asset value (NAV) last determined by the sub-fund on February 25, 2021, less all payments they have received since the cut-off date.
The offering will commence on Monday (today) and will run until July 31, 2024 and will be financed through the purchase of shares in the feeder sub-funds, UBS said.
For UBS Group, there would be no material impact on the financial result or the Common Equity Tier 1 (CET1) ratio. This is due to the provisions made when the acquisition of Credit Suisse was completed.
UBS AG expects to recognize a provision of approximately USD 0.9 billion on a consolidated basis in the second quarter of 2024 in connection with the offering. The investment in the Supply Chain Finance funds will be managed as part of the Non-Core and Legacy Portfolio (the run-off unit).
According to UBS, the offer is intended to give fund investors security. Investors could exit their positions more quickly and receive "a high level" of financial compensation.
It was one of the last major scandals at Credit Suisse. Risky transactions with supply chain financier Greensill Capital meant that CS had to suspend trading in the so-called Supply Chain Finance Funds in March 2021. To date, investors have been reimbursed 7.4 billion dollars of the original 10 billion fund assets in the course of winding up the funds.
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