ZURICH (Reuters) – Swiss bank Credit Suisse, whose liquidity situation is worrying investors, is considering a capital raise of around 2 billion Swiss francs and the issuance of convertible bonds to finance its reorganization plans, reports the Swiss newspaper SonntagsZeitung.
The number two in the Swiss banking sector is seeking to draw a line under a whole series of scandals and losses. The bank is due to present the details of its reorganization on Thursday, as well as its quarterly results.
Credit Suisse has been rushing to sell assets to limit the amount of fresh capital it might have to raise from investors. But the money received during these asset sales would not be enough to cover the restructuring bill, the newspaper points out.
Management also plans to issue convertible bonds which would be used to cover losses if required by the Swiss Financial Markets Authority or if its Tier 1 capital is deemed insufficient.
Credit Suisse declined to comment on this information.
(Report Michael Shields, French version Matthieu Protard)
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