March 16, 2023 (MLN): Credit Suisse will borrow up to 50 million francs ($53.7 billion) from the Swiss central bank to strengthen the group following a sharp drop in its share price.
The bank is also making buyback offers on around $3 billion worth of debt. These measures, according to Credit Suisse CEO Ulrich Koerner, demonstrate decisive action to reinforce the bank as it continues its strategic transformation to deliver value to its clients and stakeholders.
Credit Suisse, one of the largest banks in Switzerland, saw its shares plummet more than 30% on Wednesday due to a series of scandals and the Saudi National Bank's refusal to provide additional funding to the group.
The bank's shares ended the day's trading down 24.24% at 1.697 Swiss francs. This decline in share price followed a barrage of problems that have eroded Credit Suisse's market value since February 2021, when its shares were worth 12.78 Swiss francs.
Credit Suisse is one of 30 banks globally classified as too big to fail, which requires it to set aside more cash to withstand a crisis. The bank's decision to borrow from the Swiss central bank and make buyback offers is intended to reinforce its position and restore investor confidence.
Credit Suisse's success in addressing its issues and emerging stronger from the current crisis will be critical for the bank in the coming months.