- Credit Suisse announced Wednesday that it will borrow $54 billion from the Swiss National Bank.
- It also announced a cash offer of up to $3 billion in senior debt securities.
- The Swiss bank said it would use cash to “create a simpler, more focused bank built around the needs of its customers”.
Credit Suisse announced Wednesday that it has borrowed up to 50 billion Swiss francs, or $53.68 billion, from the Swiss National Bank. will default on its obligations.
“Credit Suisse intends to exercise its option to borrow from the Swiss National Bank and is taking decisive action to preemptively strengthen its liquidity.” said in a statement.
The Swiss bank said borrowing would be under the Covered Loan Facility and the Short-Term Liquidity Facility. The bank said it would be fully collateralized by “high-quality assets.”
It also said the cash injection would support its “core business and customers” as it “takes the necessary steps to create a simpler, more focused bank built around the needs of our customers.” rice field.
Credit Suisse also said it is preparing a cash tender offer for ten dollar-denominated senior debt securities totaling $2.5 billion and four other euro-denominated securities of up to €500 million.
The offers expire on March 22, the bank said.
“These measures represent a decisive move to strengthen Credit Suisse and provide value to our customers and other stakeholders,” said Ulrich Körner, CEO of Credit Suisse, in a statement. We continue to make strategic changes to provide
Credit Suisse shares plunged 30% on Wednesday record the lowest price. They’re down almost 42% year-to-date.