Finance fishing boats

Credit Suisse drops Tuna Bonds deal

Credit Suisse will pay compensation to investors in the bond scandal used to finance the purchase of tuna fishing boats in Mozambique.

At least one lawsuit is on the table for Credit Suisse (CS), the “FinancialTimes» (behind a paywall) reported Monday, with the bank agreeing to pay $22.6 million in compensation to investors. The agreement was signed by a New York court on Friday.

tuna bonds

The case dates back to 2013, when Credit Suisse and Russian investment bank VTB provided $2 billion in loans to Mozambique to establish a tuna fishing industry and develop recently discovered offshore natural gas fields. The companies took out loans to buy equipment using state guarantees that were issued without the approval of the country’s parliament, according to the Financial Times.

The extent of the debt was discovered in 2016. Businesses collapsed and subsequent defaults led to years of financial upheaval in Mozambique as aid was cut off by donors, the report said.

Further progress

In October last year, Credit Suisse agreed to pay $475 million in fines to US, UK and Swiss authorities while canceling $200 million in debt to Mozambique. The bank reached a deferred prosecution agreement with the United States, while the European subsidiary pleaded guilty to committing wire fraud, according to the report.

On Friday, Credit Suisse said the completion of this restitution under this settlement “marks further progress in our efforts to address legacy issues and to focus on executing our strategic plan for clients. , colleagues and investors,” according to the FT report. .