Credit Suisse announced late Wednesday it will borrow up to $54 billion from the Swiss National Bank. People walk at the Credit Suisse headquarters in New York on March 15, 2023 in New York City.
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Credit Switzerland announced it will borrow up to 50 billion Swiss francs ($53.68 billion) from the Swiss National Bank under a secured loan facility and a short-term liquidity facility.
The decision came shortly after the lender’s shares fell sharply on Wednesday, hitting their lowest level for a second day in a row after Saudi National Bank’s top investor said it would not be able to provide further assistance.
The latest move will “support Credit Suisse’s core business and clients as Credit Suisse takes the necessary steps to create a simpler, more focused bank built around the needs of its clients,” the company said in an announcement.
In addition, the bank made a cash tender offer on ten US dollar-denominated senior debt securities with an aggregate consideration of up to $2.5 billion – as well as a separate offer for four Euro-denominated senior debt securities up to an aggregate of 500. million euros, the company said.
“These steps represent important actions 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 for carrying out a strategic transformation. My team and I decided to move forward quickly to deliver a simpler and more focused bank built around the needs of our clients,” he said.
US futures climb, with Dow Jones Industrial Average futures gained more than 100 points after the announcement. S&P 500 futures also rose 0.45% and Nasdaq 100 futures increased by 0.54%.
Banks in the Asia-Pacific also pared some of their earlier losses – Japan’s Topix earlier fell more than 2% and ended up trading 1.4% lower.
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