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Credit Suisse plans to borrow up to SFr50bn ($54bn) from the Swiss central bank and buy back about SFr3bn of its debt, in an attempt to boost its liquidity and calm investors a day after the bank’s share price plummeted.
The Swiss National Bank had said on Wednesday it was willing to provide a liquidity backstop to Credit Suisse after the troubled lender’s shares fell as much as 30 per cent. The sell-off came after the chair of Saudi National Bank, a major Credit Suisse shareholder, ruled out any further investment. It also followed turbulent trade in global banking stocks in the wake of Silicon Valley Bank’s collapse.
In a statement on Thursday, Credit Suisse said it had taken the decision “to pre-emptively strengthen its liquidity” by borrowing the funds from the Swiss central bank under a loan facility and short-term liquidity facility....
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