Credit Suisse Investors Exercised 97% of Rights
Credit Suisse Group AG (CSGN), Switzerland’s second-biggest bank, said 97 percent of subscription rights for 1.9 billion francs ($1.94 billion) in mandatory convertible bonds were exercised by shareholders.
The remaining 64 million francs of notes were placed with strategic investors, the Zurich-based bank said in a statement today. The subscription period for the notes ended on July 27.
“The high take-up is a significant vote of confidence from both our new and existing investors,” Chief Executive Officer Brady Dougan said in the statement.
Credit Suisse said July 18 it plans to boost capital by 15.3 billion francs this year, including 3.8 billion francs through bonds that will convert into 234 million shares in March at the price of 16.29 francs a share.
Credit Suisse rose 28 centimes, or 1.7 percent, to 17.03 francs by 9:20 a.m. in Swiss trading. The shares are down 23 percent so far in 2012.
Half of the notes, carrying a 4 percent coupon, were purchased by strategic investors including Qatar Holding LLC, Olayan Group, BlackRock Investment Management, Norges Bank Investment Management, Capital Research Global Investors and Temasek Holdings Pte Ltd. The investors also agreed to buy any of the remaining bonds not taken up by other shareholders.
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