(Bloomberg) -- Credit Suisse Group AG agreed to sell distressed debt assets for $1.27 billion to an arm of private-equity firm TPG.

The portfolio being sold to TSSP, a credit and special situations business, includes 270 instruments related to about 170 companies globally, Credit Suisse and TSSP said in a statement on Tuesday.

The transaction results in an extra charge of about $100 million for Credit Suisse, to be reflected in first-quarter results due May 10, according to the statement. That’s in addition to $99 million of distressed credit writedowns already announced.

Chief Executive Officer Tidjane Thiam is seeking to restore investor confidence in the Zurich-based bank as he accelerates a restructuring and heads off confusion over losses on risky fixed-income trades. The firm lost almost $1 billion since October on soured credit positions and Thiam has responded by pulling the bank out of trading securitized products in Europe, distressed debt and “long-term illiquid financing,” according to a March presentation.

To contact the reporter on this story: Vinicy Chan in Hong Kong at To contact the editors responsible for this story: Marcus Wright at, Paul Panckhurst, Darren Boey

©2016 Bloomberg L.P.