UBS Sets Aside $900M for Greensill Fund Redemptions, Offers 90% Reimbursement to Clients

UBS Sets Aside $900M for Greensill Fund Redemptions, Offers 90% Reimbursement to Clients

Swiss banking giant UBS is set to record a provision of approximately $900 million linked to Credit Suisse's funds associated with the collapsed supply chain financing firm Greensill Capital. This follows UBS's acquisition of Credit Suisse last year, after the latter experienced significant financial difficulties due to the Greensill collapse. UBS has offered to redeem fund units at 90% of the Net Asset Value determined on February 25, 2021, minus any payments already made to fund investors.

Despite the substantial provision, UBS has stated that this financial adjustment will not significantly impact its financial results or its Common Equity Tier 1 (CET1) capital ratio. The reimbursement offer is part of UBS's broader efforts to provide certainty and financial recovery to investors, as well as to close a challenging chapter following its acquisition of Credit Suisse. This move aims to offer an accelerated exit for investors and resolve lingering issues related to the Greensill debacle.

Summary

Other news in finance