UBS has offered to pay back 90 per cent of the losses experienced by Credit Suisse customers following the collapse of Greensill Capital in 2021.

Greensill was a UK FinTech that supplied capital to help global companies with supply chain finance. Before its collapse, it was one of the largest non-bank bond issuers in Europe.

UBS said that the voluntary repayment, which will see the bank set aside USD $900 million, aims to give fund investors certainty, an accelerate exit from their positions, and a "high level of financial recovery".

It went on to say that the move would allow an early exit from fund investments compared to distributions under the ongoing recovery process.

The offer will be funded by UBS through the purchase of units of the feeder subfunds.

UBS said that the offer is not expected to have a material effect on its financial results or CET1 capital, reflecting provisions recorded in connection with the acquisition of Credit Suisse Group.

"Fund investors who choose to accept the offer will be redeemed at 90 per cent of the Net Asset Value determined on 25 February 2021, net of any payments made to the fund investors since then, through newly established feeder subfunds," said the bank.

UBS completed its more than $3 billion takeover of Credit Suisse in June 2023 to create a finance giant with a balance sheet of $1.6 trillion in the biggest banking deal since the 2008 financial crisis.

Credit Suisse’s failure was propelled by the collapse of Silicon Valley Bank, which sent shockwaves through the global finance ecosystem and intensified a recent “crisis of confidence” at the bank.

At the time of its unwinding, Credit Suisse was being probed by the Securities and Exchange Commission after “material weaknesses” were found in its financial statements.

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