Dow Jones Newswires: Credit Suisse strikes deal to sell securitized-products group to Apollo

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Credit Suisse Group AG has entered into definitive transaction agreements to sell a large part of its securitized-products group and other financing businesses to Apollo Global Management Inc. as it seeks to derisk its investment bank and divert capital to its core businesses.

The Swiss lender CSGN, +0.49% CS, -2.81% said Tuesday that the deal with Apollo and the sale of other assets to third-party investors would slash the value of assets under its securitized-products group to roughly $20 billion from $75 billion through several transactions that Credit Suisse expects to be close by mid-2023.

Apollo will manage those remaining assets under an investment relationship with an expected term of five years to be agreed upon at the first closing.

The transactions should hand Credit Suisse a release of risk weighted assets of up to $10 billion, strengthening its capital ratio.

The Wall Street Journal reported last month that the bank was nearing a deal to sell its securitized-products group, citing people familiar with the matter.

Credit Suisse plans to cut thousands of jobs and raise around $4 billion in fresh capital in a move to turn a page on a chapter of scandals, hefty losses, executive turnover and waning market confidence.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

This article was originally published by Marketwatch.com. Read the original article here.

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