Qatar Investment Authority plans to raise Credit Suisse stake
- Date: 02-Nov-2022
- Source: Financial Times
- Sector:Financial Markets
- Country:Qatar
Qatar Investment Authority plans to raise Credit Suisse stake
The Qatar Investment Authority plans to increase its stake in Credit Suisse by investing in a share sale alongside the Saudi National Bank, according to people with knowledge of the talks.
The deal will result in up to a quarter of Credit Suisse stock being owned by Middle Eastern investors, as the scandal-plagued lender seeks to raise SFr4bn ($4bn) to fund a radical restructure.
Last week, the Swiss bank announced it would strip back and spin off its investment bank, reduce its global workforce by 9,000 and cut SFr2.5bn of costs in a three-year strategic revamp aimed at moving on from a succession of crises and quarterly losses.
The SNB — whose own largest shareholder is the Public Investment Fund, the Saudi sovereign wealth fund — has agreed to invest SFr1.5bn in Credit Suisse for a 9.9 per cent stake.
While the majority of the investment will be made through a SFr1.76bn initial share placement, to be signed off at an extraordinary general meeting on November 23, the SNB will also take part in a SFr2.24bn rights issue later in the year.
The SNB will be joined by two other investors in the share placement, including QIA, which already owns 5 per cent of Credit