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. 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.
