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Credit Suisse, Mozambique reach out-of-court ‘tuna bond’ settlement
The logo of Credit Suisse is seen outside its office building in Hong Kong August 8, 2023. — Reuters pic

ZURICH, Oct 1 — Credit Suisse has reached an 11th-hour out-of-court settlement with Mozambique over the US$1.5 billion-plus (RM7 billion-plus) "tuna bond” scandal, the Swiss bank’s new owner UBS said today, drawing a line under a damaging dispute it inherited.

"The parties have mutually released each other from any liabilities and claims relating to the transactions,” UBS said.

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"The parties are pleased to have resolved this long-running dispute stemming from events occurring a decade ago.”

The terms of the deal were not disclosed one day before a three-month London civil trial was due to start on Monday.

The tuna bond case dates back to three deals between state-owned Mozambican companies and shipbuilder Privinvest — funded in part by loans and bonds from Credit Suisse and backed by undisclosed Mozambican government guarantees.

Mozambique, one of the world’s poorest countries, wanted to revoke a sovereign guarantee on a loan it alleges was corruptly procured and secure compensation for other alleged wrongdoing.

UBS, which rescued scandal-scarred Credit Suisse amid turmoil in the global banking sector earlier this year, has a financial buffer of as much as US$10 billion for litigation, JPMorgan analysts estimated in a note to clients on Wednesday. — Reuters

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