Credit Suisse offers 889 million shares to increase capital by $4 ‎billion

25 Nov 2022

Riyadh - Maaal

The Credit Suisse logo is seen at the headquarters in downtown Milan, Italy, March 9, 2016. Credit Suisse Group is under investigation in Italy in connection with a case looking into allegations that the bank helped wealthy clients transfer undeclared funds offshore, Italian judicial sources said on Wednesday. REUTERS/Stefano Rellandini TPX IMAGES OF THE DAY TPX IMAGES OF THE DAY - RTSA295

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Credit Suisse announced on Thursday that it has offered 889 million new shares to existing investors at a price of CHF 2.52 per share, confirming details of its four billion franc capital increase.

According to “Reuters”, the capital increase, which was approved by investors on Wednesday, aims to finance the transformation plan of the troubled bank to recover from a series of scandals and losses.

Credit Suisse said the share issue is expected to raise 2.24 billion Swiss francs.

One protective subscription right will be allocated for each share owned by shareholders today, Friday, November 25, 2022.

The bank also confirmed that it had issued 462 million new shares to qualified investors, including the Saudi National Bank, which bought 307 million new shares to obtain a 9.9 percent stake in Credit Suisse.

The bank expects to make four billion francs from the stock offering and rights issue to support restructuring and move away from investment banking services.

He added that the nominal capital of the Credit Suisse Group increased by 17 percent as a result of the capital increase.