FILE PHOTO: The logo of Swiss bank Credit Suisse is seen at its headquarters in Zurich, Switzerland June 22, 2020. REUTERS/Arnd Wiegmann/File Photo
July 20, 2020
ZURICH (Reuters) – SoftBank has pulled a $500 million investment from Credit Suisse’s <CSGN.S> supply chain finance funds after the Swiss bank reviewed its relationship with SoftBank-backed lender Greensill Capital, according to a source with direct knowledge of the matter and supported by an investor letter sent by the bank.
In a letter to investors, the Swiss bank on Monday said it would change investment guidelines for its supply chain finance funds after questions were raised over ties with the Japanese conglomerate and with Greensill, which had invested in notes related to Softbank’s Vision Fund.
It had entered into an agreement in late April with an institutional investor, the bank said in the letter, which confirmed that three of the four funds would source their supply chain finance notes exclusively from Greensill.
“This separate agreement has recently been terminated and the investor has redeemed its investment in full,” the bank said in the letter.
A source confirmed that the investor which had terminated the agreement was SoftBank.
(Reporting by Brenna Hughes Neghaiwi; writing by Rachel Armstrong and Brenna Hughes Neghaiwi; editing by Michael Shields)
