UBS has offered to buy shares of Credit Suisse Supply Chain Finance funds, it announced on Monday. Accordingly, the provision is expected to be approximately $900 million (CHF 802.9 million).
Investors who agree will be redeemed at 90% of the net asset value determined on February 25, 2021, less any payments received since then.
Payments will be made through newly created feeder sub-funds. The offer began on Monday and will run until July 31, 2024.
Fund investors will receive details of their redemption offer through their custodian.
The funds were jointly managed with Greensill Capital and were wound up in March 2021, shortly before Greensill filed for insolvency.
The funds, which were described as low risk, had $10 billion in assets. The funds had $7.4 billion in cash as of February 2023, before Credit Suisse was acquired by UBS.
“The proposal is intended to provide fund investors with certainty, accelerated exit from their positions and a high level of financial recovery,” UBS said.
Investments in supply chain finance funds will be managed as part of UBS’s non-core and legacy portfolio.
“No material impact on UBS AG is expected individually.”
Credit Suisse announced the closure of these funds in March 2021, citing uncertainty in the valuation of some investments and limited availability of insurance coverage for new investments.
Last February, Finma found that Credit Suisse had seriously breached its supervisory obligations regarding the risk management of Greensill-affiliated companies.