Credit Suisse : Asset Management update on Supply Chain Finance Funds; next distribution to investors of USD 1.7 billion

Credit Suisse Asset Management update on Supply Chain Finance Funds; next distribution to investors of USD 1.7 billion

Since the four Supply Chain Finance Funds (SCFFs) were suspended on March 1, 2021, we have made progress on the wind-down of the funds.

Zurich
13.04.2021

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As at April 9, 2021 we have collected USD 2.0 billion from receivables redeemed since March 1, 2021. This results in cash and cash equivalent levels currently in the SCFFs amounting to USD 2.3 billion. The total cash position, including the USD 3.1 billion that already has been distributed to investors, thus amounts to USD 5.4 billion, or more than half of the total Assets under Management of the four funds at the time of their suspension. We are therefore able to announce a second cash distribution to investors, amounting to USD 1.7 billion, commencing today. This takes the total distribution so far to USD 4.8 billion.

Credit Suisse Asset Management continues to work on identifying and progressing options to secure recovery. Liquidation proceeds will be paid out to investors as soon as feasible in one or more instalments until the investors receive the funds' total collected net liquidation proceeds. Investors will receive notification of such payments.

Credit Suisse Asset Management is in active dialogue with the Joint Administrators of Greensill Capital (UK) Ltd, Grant Thornton, and, where appropriate, is engaging directly with potentially delinquent obligors and other creditors. Claims will also be made under relevant insurance policies where there is evidence of non-payment or default. It is important to note that in many of these cases of non-payment or default, the obligors are firms with tangible assets. The current assessment is that there is potential for recovery in these cases although clearly there is a considerable degree of uncertainty as to the amounts that ultimately will be distributed to investors in respect of the funds. We will continue to report on the progress we are making with these situations as appropriate.

Furthermore, Credit Suisse Asset Management will consider appropriate legal actions to protect fund holders' interests.

Outlook

We remain acutely aware of the uncertainty that the wind-down process creates for those of our clients who are invested in the funds. We are doing everything that we can to provide them with clarity, to work through issues as they arise and, ultimately, to return cash to them. We intend to provide a further update on the progress made by the end of April 2021.

Credit Suisse

Credit Suisse is one of the world's leading financial services providers. Our strategy builds on Credit Suisse's core strengths: its position as a leading wealth manager, its specialist investment banking capabilities and its strong presence in our home market of Switzerland. We seek to follow a balanced approach to wealth management, aiming to capitalize on both the large pool of wealth within mature markets as well as the significant growth in wealth in Asia Pacific and other emerging markets, while also serving key developed markets with an emphasis on Switzerland. Credit Suisse employs approximately 48,770 people. The registered shares (CSGN) of Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.

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This document was produced by and the opinions expressed are those of Credit Suisse as of the date of writing and are subject to change. It has been prepared solely for information purposes and for the use of the recipient. It does not constitute an offer or an invitation by or on behalf of Credit Suisse to any person to buy or sell any security. Any reference to past performance is not necessarily a guide to the future. The information and analysis contained in this publication have been compiled or arrived at from sources believed to be reliable but Credit Suisse does not make any representation as to their accuracy or completeness and does not accept liability for any loss arising from the use hereof.

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