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ZURICH (Reuters) – UBS said on Wednesday it had signed an agreement with Apollo Global Management for Credit Suisse’s securitized products business, as part of its efforts to reduce non-core assets following its takeover of the banking giant.
Apollo will purchase $8 billion (€7.38 billion) of “senior secured credit facilities,” UBS said in a statement.
UBS will thus record a net gain of around $300 million in the first quarter of 2024.
Credit Suisse, which will suffer a loss of $900 million following this operation, had already started this process in 2022.
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Under the terms of the deal, approximately $20 billion in remaining assets are expected to remain on Credit Suisse’s books but be managed by Apollo.
UBS will keep what is not transferred to Apollo, a bank spokesperson said. The value of the old assets retained by UBS was not immediately specified.
(Reporting Oliver Hirt, Gdansk Bureau, writing by Dave Graham; French version Kate Entringer, editing by Zhifan Liu)
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