Credit Suisse AT1 Bond Crisis: Withers Forms Global Team To Support Affected Indonesian Investors – Financial Services – Worldwide
Credit Suisse AT1 Bond Crisis: Withers Forms Global Team To ... Mondaq News Alerts
sdgtalks
A Global Crisis with Substantial Impact in Asia
31 July 2023
Withers LLP
Over USD 17 billion worth of AT1 bonds were wiped out from the Credit Suisse crisis and investors from Asia reportedly form a substantial part of the exposure. Indonesia is South East Asia’s largest economy and as we are receiving many approaches, Withers has formed an international team to provide support to our clients.
With several important issues still to be resolved, and as our article here does not contain legal advice under any laws and should not be relied on as legal advice, we recommend contacting your Withers partner or any member of our dedicated team for specific advice on your situation and we will get back in touch.
A Global Crisis with Substantial Impact in Asia
Since the Swiss authorities made the unprecedented move to write down Credit Suisse AT1 bonds, several regulators from key financial hubs including the Bank of England and European Central Banking Authority have issued statements to publicly affirm investors’ legitimate expectations that equity instruments would be the first to absorb losses before any AT1 bonds would be written down. The Credit Suisse AT1 bond write down has far-reaching impacts across the world including in Asia.
Increasingly, questions are being asked around the extent to which a ‘viability event’ required to justify any write down could be said to have indeed occurred, and whether Credit Suisse had indeed reached any internal liquidity limits and fallen short of capital adequacy requirements earlier than what was publicly represented by the Swiss authorities.
These questions and developments surrounding them could impact the options available to investors from all over the world, including those from Indonesia.
Options for Indonesian Investors
Many Credit Suisse AT1 bondholders are exploring potential claims against the Swiss government under investment treaties that Switzerland has with other countries. While Indonesia does not have in force a bilateral investment treaty, economic partnership agreement or free trade agreement with Switzerland that could form the basis of an investment treaty claim for Indonesian investors, Indonesian bondholders could have access to investment treaties of other countries in certain circumstances such as where bondholders can be characterised as having the right of permanent residence of a different country or where bonds are held through offshore entities. We have a team who can assess your qualifying investor status.
Cross Border Solutions
We have a specialist team with substantial public international law and investor state arbitration experience working with clients to assist them in charting a course through the difficulties and confusion arising from this black swan event at the epicentre of the global banking crisis. It is important that you have the opportunity to develop a cross border strategy tailored to your individual circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
POPULAR ARTICLES ON: Finance and Banking from Worldwide
- New Overseas Investment Regulations And Rules – ALMT Legal
- An Overview Of LRS – Metalegal Advocates
SDGs, Targets, and Indicators Analysis
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 8: Decent Work and Economic Growth
- SDG 10: Reduced Inequalities
- SDG 16: Peace, Justice, and Strong Institutions
The article discusses the impact of the Credit Suisse crisis on investors, particularly those from Asia, including Indonesia. This connects to SDG 8, which focuses on promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all. It also relates to SDG 10, which aims to reduce inequalities within and among countries. Additionally, the article mentions the involvement of regulators and the potential for legal claims, which aligns with SDG 16’s goal of promoting peaceful and inclusive societies for sustainable development.
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities.
- SDG 10.3: Ensure equal opportunity and reduce inequalities of outcome, including through eliminating discriminatory laws, policies, and practices and promoting appropriate legislation, policies, and action in this regard.
- SDG 16.3: Promote the rule of law at the national and international levels and ensure equal access to justice for all.
The article highlights the potential impact on investors from Asia, including Indonesia. Target 8.5 focuses on achieving full and productive employment and decent work for all, including investors. Target 10.3 aims to reduce inequalities of outcome, which includes addressing any discriminatory practices or policies that may affect investors. Target 16.3 emphasizes promoting the rule of law and ensuring equal access to justice, which is relevant to the potential legal claims mentioned in the article.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- Indicator for SDG 8.5: Proportion of employed people living below the poverty line.
- Indicator for SDG 10.3: Proportion of population reporting having personally felt discriminated against or harassed in the previous 12 months on the basis of a ground of discrimination prohibited under international human rights law.
- Indicator for SDG 16.3: Proportion of victims of violence in the previous 12 months who reported their victimization to competent authorities or other officially recognized mechanisms.
The article does not explicitly mention specific indicators. However, to measure progress towards SDG 8.5, the proportion of employed people living below the poverty line can be used as an indicator. For SDG 10.3, the proportion of population reporting discrimination or harassment based on prohibited grounds can be measured. Lastly, for SDG 16.3, the proportion of victims of violence who report their victimization to competent authorities can serve as an indicator.
SDGs, Targets, and Indicators Table
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities. | Proportion of employed people living below the poverty line. |
| SDG 10: Reduced Inequalities | Target 10.3: Ensure equal opportunity and reduce inequalities of outcome, including through eliminating discriminatory laws, policies, and practices and promoting appropriate legislation, policies, and action in this regard. | Proportion of population reporting having personally felt discriminated against or harassed in the previous 12 months on the basis of a ground of discrimination prohibited under international human rights law. |
| SDG 16: Peace, Justice, and Strong Institutions | Target 16.3: Promote the rule of law at the national and international levels and ensure equal access to justice for all. | Proportion of victims of violence in the previous 12 months who reported their victimization to competent authorities or other officially recognized mechanisms. |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: mondaq.com
Join us, as fellow seekers of change, on a transformative journey at https://sdgtalks.ai/welcome, where you can become a member and actively contribute to shaping a brighter future.
