Credit Suisse to borrow up to $54 billion from the Swiss National Bank
People walk past the New York headquarters of Credit Suisse on March 15, 2023 in New York
Spencer Platt | Getty Images News | Getty Images
Swiss credit announced that it will borrow up to 50 billion Swiss francs ($53.68 billion) from the Swiss National Bank under a covered loan facility and a short-term liquidity facility.
The decision comes shortly after the lender’s shares fell sharply on Wednesday, hitting an all-time low for the second day in a row after its main investor, Saudi National Bank, said it would not be able to provide additional help.
The final steps “will support Credit Suisse’s core businesses and customers as Credit Suisse takes the necessary steps to create a simpler, more focused bank built around customer needs,” the company said in a statement.
In addition, the bank is launching a cash tender offer for ten US dollar-denominated senior debt securities for an aggregate amount of up to $2.5 billion – as well as a separate offer for four senior debt securities denominated in US dollars. in euros for a total amount of 500 million euros, the company said.
“These steps demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders,” said Credit Suisse CEO Ulrich Koerner.
“We thank the SNB and FINMA as we execute our strategic transformation. My team and I are committed to moving quickly to deliver a simpler, more focused bank built around customer needs,” he said.
US futures rose, with the Dow Jones Industrial Average futures gaining more than 100 points after the announcement. S&P 500 Futures Contracts also increased by 0.45% and Nasdaq 100 Futures Contracts climbed 0.54%.
Banks in the Asia-Pacific region also pared some of their earlier losses – Japan’s Topix plunged more than 2% earlier and last traded 1.4% lower.
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