ZURICH, Oct 31 (Reuters) – Credit Suisse on Monday unveiled details of a plan it announced on Thursday to raise 4 billion Swiss francs (4.04 billion euros) to finance the group’s third attempt to turn around the crisis. worst crisis in its history.
The second largest Swiss bank is raising funds to finance a restructuring that will see it cut thousands of jobs and refocus on wealth management rather than investment banking.
His reputation has been marred by a series of scandals and heavy losses, including a $5.5 billion loss following the collapse of US investment fund Archegos, and the freezing of $10 billion in funds supply chain finance linked to insolvent UK financier Greensill.
The bank now offers new and existing shareholders the opportunity to purchase new securities.
The bank said the new investors have pledged to buy 462 million new shares at a price of 3.82 Swiss francs ($3.83), or 94% of the benchmark price, raising 1.76 billion Swiss francs.
Some 307.6 million of these new shares are expected to be purchased by Saudi National Bank, giving it a 9.9% stake in the group.
Existing investors will have the opportunity to buy 889 million shares at 2.52 francs each, with subscription rights corresponding to the size of their current stake.
Seven preferential subscription rights are expected to entitle the holder to buy two new shares at a 32% discount to the reference price, Credit Suisse said.
Both issues must be approved at an extraordinary general meeting scheduled for November 23.
If shareholders reject the plan, Credit Suisse will issue 1.8 billion new shares at an offer price of 2.27 francs per share, which would still allow it to raise 4 billion francs.
Credit Suisse has been rushing to sell assets to limit the amount of fresh capital it might have to raise from investors, manage the costs of its past litigation and maintain a cushion for future difficulties.
The bank will act as global coordinator for the capital raise, while Deutsche Bank, Morgan Stanley, RBC Capital Markets and Société Générale will act as joint lead managers and joint bookrunners, Credit Suisse said. . (Report John Revill, French version Diana Mandiá, edited by Kate Entringer)