Swiss banking giant UBS Group AG (UBS) announced on Monday that the Credit Suisse Supply Chain Finance Funds have extended an offer to redeem fund units.
Investors who choose to accept this offer will be redeemed at 90% of the Net Asset Value as of February 25, 2021, minus any distributions made to investors since that date, through newly created feeder subfunds.
The offer commenced on June 17, 2024, and will remain open until July 31, 2024. Investors will receive detailed information about the redemption offer via their custodians and are encouraged to carefully review all terms and accompanying disclosures.
UBS stated that the purpose of the offer is to provide investors with certainty, facilitate an accelerated exit from their positions, and ensure a substantial level of financial recovery. This approach offers an earlier exit compared to the distributions expected under the ongoing recovery process.
The redemption offer will be funded by UBS through the acquisition of units in the feeder subfunds.
UBS further clarified that this offer is not anticipated to have a significant impact on its financial results or its Common Equity Tier 1 (CET1) capital.
For the second quarter, UBS AG expects to record a provision of approximately $0.9 billion on a consolidated basis, although there is no expected material impact on UBS AG on an individual basis.
The investments in the Supply Chain Finance Funds will be managed as part of UBS's Non-Core and Legacy portfolio.
