SoftBank has pulled a more than US$500 million investment from Credit Suisse's supply chain finance funds after the Swiss bank reviewed the funds including the Japanese conglomerate's role, according to two sources.
The Swiss bank launched the review after the Financial Times reported last month that SoftBank had put US$500 million into some Credit Suisse funds, which in turn invested in assets selected by SoftBank-backed lender Greensill Capital.Some of the funds' investments were in notes backed by loans Greensill made to other companies backed by SoftBank's Vision Fund.
"This separate agreement has recently been terminated and the investor has redeemed its investment in full," the bank said in the letter. The funds invest in notes backed by trade receivables, or claims for payment from a business to its suppliers for goods or services that have been invoiced. As payment delays may cause cash-flow problems for their suppliers, supply chain finance such as that provided by Greensill allows suppliers to collect on invoices early in exchange for a fee. Greensill will then collect on the value of the invoice from the buyer.
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »