ZURICH, June 17 (Reuters) - UBS expects to

record a provision of roughly $900 million on Credit Suisse's

funds linked to collapsed supply chain financing firm Greensill

Capital, the Swiss bank said on Monday.

UBS acquired Credit Suisse last year after its longtime

rival imploded following a string of financial problems.

Among them, Credit Suisse racked up a 1.6 billion Swiss

franc ($1.80 billion) loss due to the collapse of $10 billion in

supply chain finance funds linked to Greensill in 2021.

At the centre of the ill-fated scheme were supply chain

finance deals, also known as reverse factoring, where companies

can get cash from banks and funds such as Greensill Capital to

pay suppliers.

"The Credit Suisse Supply Chain Finance Funds have made an

offer to redeem fund units," UBS said in a statement.

"Fund investors who choose to accept the offer will be

redeemed at 90% of the Net Asset Value determined on 25 February

2021, net of any payments made to the fund investors since then,

through newly established feeder subfunds."

"UBS AG expects to record a provision of around $0.9 bln on

a consolidated basis in connection with the offer in 2Q24."

The offer is not expected to have a material effect on the

financial results or CET1 capital of UBS, the bank said.

"The offer aims to give fund investors certainty, an

accelerated exit from their positions and a high level of

financial recovery," UBS said.

($1 = 0.8905 Swiss francs)