Credit Suisse Raises $1.3 Billion Before Rights OfferBy
Credit Suisse Group AG said a group of investors will buy 1.32 billion Swiss francs ($1.3 billion) of shares for 22.75 francs apiece as part of the bank’s plan to raise capital and comply with tougher regulatory standards.
The price is about 8.6 percent below the closing price before the share sale was announced last week. It compares with a bigger discount for existing investors who separately will be offered 4.7 billion francs of stock at 18 francs a share.
Chief Executive Officer Tidjane Thiam is reviewing the bank’s strategy by scaling back the investment bank to prioritize wealth management. He’s turning to new investors and shareholders to bolster capital buffers as Switzerland sets new targets for the so-called leverage ratio, a measure of financial strength that takes into account a bank’s total assets.
Credit Suisse, which didn’t identify which investors participated in the placing, on Monday said it also expanded the group of banks that are helping the Swiss company to manage the rights offering. Citigroup Inc., HSBC Holdings Plc and Societe Generale SA are leading the group of 25 firms, the lender said.
Credit Suisse shares rose as much as 0.9 percent and were 0.8 percent higher as of 1:21 p.m. in Zurich.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- Uber Victim Stepped Suddenly in Front of Self-Driving Car
- Facebook Sued by Investors Over Voter-Profile Harvesting
- Cambridge Analytica's Board Suspends CEO Nix Amid Inquiry
- The World's Happiest Place Wants to Hire the Best Finance Brains
- Facebook Just Lost More Than Tesla's Entire Market Cap in Two Days