Credit Suisse to borrow up to about $54 billion from Swiss National Bank

People walk past Credit Suisse New York headquarters on March 15, 2023 in New York City

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credit suisse Announced that it will borrow up to 50 billion Swiss francs ($53.68 billion) from the Swiss National Bank under guaranteed loan arrangements and short-term liquidity facilities.

The decision comes shortly after the lender shares sharp drop It hit a record low for a second day on Wednesday after its biggest investor, the National Bank of Saudi Arabia, said it would be unable to provide further aid.

The latest move will “support Credit Suisse’s core business and clients as it takes the necessary steps to create a simpler, more focused bank around client needs,” the company said in a statement. announcement.

In addition, the bank has made cash offers for 10 US dollar-denominated senior debt securities for an aggregate consideration of up to US$2.5 billion and separate offers for four euro-denominated senior debt securities for a total consideration of US$500. million euros, the company said.

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Credit Suisse CEO Ulrich Koerner said: “These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to create value for our clients and other stakeholders.”

“As we execute our strategic transformation, we thank the SNB and FINMA. My team and I are determined to move forward quickly to deliver a simpler bank that is more focused on our customers’ needs,” he said.

U.S. futures rose, as Dow Jones Industrial Average Futures rose more than 100 points following the news. S&P 500 Index Futures also rose 0.45% and Nasdaq 100 Futures Up 0.54%.

Banks in the Asia-Pacific region also pared some of their earlier losses – Japan’s Topix was last down 1.4 percent after plunging more than 2 percent earlier.

This is breaking news. Please check for updates.

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