ZURICH: UBS has sealed the sale of the securitised products business of Credit Suisse to Apollo Global Management, as part of efforts to wind down non-core assets after its takeover of the collapsed banking giant.
Apollo will purchase $8 billion of “senior secured financing facilities”, UBS said on Wednesday, adding that it expects to make a net gain of about $300 million from the deal in the first quarter of 2024.
“This mutually beneficial agreement aligns with UBS’s strategy of winding down and simplifying its non-core and legacy portfolio,” UBS said in a statement.
Credit Suisse had begun the process in 2022, saying it would wind down its business of securitising products such as mortgages.
Under that plan, about $20 billion of remaining assets were to stay on the books of Credit Suisse but be managed by Apollo. UBS will retain what is not being transferred to Apollo, a spokesperson for the bank said.
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The value of the former assets remaining with UBS was not immediately clear. UBS Chief Executive Sergio Ermotti said the deal will free up capital from non-core activities and reduce costs and complexity in its business.
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