UBS is buying back shares of the Credit Suisse Supply Chain Funds, offering investors an early exit from the Greensill funds.
UBS continues to integrate Credit Suisse (CS) and is addressing its legacy issues. On Monday, the major bank announced that the CS Supply Chain Funds will present a buyback offer to fund investors.
The supply chain financing fund shares will be repurchased at 90 percent of the net asset value (NAV, minus all payments since 25 February 2021), with the offer valid until 31 July 2024. UBS aims to allow investors «an early exit from fund investments compared to distributions under the ongoing recovery process».
No Impact on UBS Earnings
UBS does not expect the buyback to impact its financial results or capital ratio, as it made provisions during the acquisition of Credit Suisse.
The Supply Chain Finance Funds are managed as part of the Non-Core and Legacy Portfolio. These legacy issues stem from CS’ investments in Greensill – the billion-dollar loss incurred by the major bank contributed to its downfall during the US regional banks crisis, leading to its collapse in March 2021.
Finma Reprimand Shortly Before CS Collapse
The financial market regulator Finma also dealt with the Greensill funds and, at the end of February 2023, shortly before CS’ collapse, noted a serious violation of supervisory law as part of an enforcement proceeding initiated in 2021.
