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Credit Suisse to Commit $600 Million for Saudi Expansion

  • Bank to use some capital for loans backed by local stocks
  • Lender said to be in advanced talks to secure banking license

Credit Suisse Group AG, the Swiss lender seeking a banking license in Saudi Arabia, has allocated about $600 million of its own capital to expand its business in the kingdom, according to people familiar with the matter.

The Zurich-based bank, which has a securities and equities business in the country, plans to use the capital to, among other things, offer investors Lombard loans, which are backed by liquid assets such as stocks, said the people, who asked not to be identified because the information is private. Such loans could help facilitate trading in local equities, they said.