People walk by Credit Suisse’s New York headquarters on March 15, 2023 in New York City
Spencer Platt | Getty Images News | Getty Images
credit Suisse announced that it would 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 came shortly after the lender’s shares fell sharply on Wednesday, hitting a second consecutive day low after its top investor Saudi National Bank said it would not be able to provide further aid.
“The latest moves will support Credit Suisse’s core businesses and customers as Credit Suisse takes the necessary steps to create a bank that is simpler and more focused on customer needs,” the company said in an announcement.
In addition, the Bank is making a cash tender offer in respect of ten US dollar denominated senior debt securities for a total consideration of up to $2.5 billion – as well as a separate offer for four euro denominated senior debt securities for a total consideration of up to $500 million. , the company said.
“These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our customers and other stakeholders,” said Ulrich Körner, CEO of Credit Suisse.
“We thank SNB and FINMA as we execute our strategic transformation. My team and I are determined to move quickly to deliver a simpler and more focused bank built around customer needs,” he added. “
US futures rose, with Dow Jones Industrial Average Futures climbed over 100 points after the announcement. s&p 500 futures also increased by 0.45% and nasdaq 100 futures climbed 0.54%.
Banks in Asia-Pacific also pared some of their earlier losses – Japan’s Topix first fell more than 2% and last ended lower by 1.4%.
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