Credit Suisse on Thursday headed into the final stage of a 4 billion Swiss francs ($4.25 billion) cash call that it hopes will allow an overhaul to draw a line under years of scandals.
Despite widespread market uncertainty, five bankers involved in Thursday’s 2.2 billion-franc rights issue said they were confident investors would take up more than 90% of the offer and leave them to mop up only a residual amount of shares.
Credit Suisse has already placed some 1.8 billion francs worth of shares with a group of institutional investors led by Saudi National Bank.
The five bankers, who asked not to be named, pointed to the stock’s improved performance over the last few days, as well as the volume of rights changing hands, as a sign that investors were buying into the capital increase.
The result is expected to be announced after market close on Thursday.
Credit Suisse declined to comment.
The combined 4 billion franc package is meant to fund a turnaround and strengthen the balance sheet as the Swiss lender strives to move on from scandals and heavy losses that prompted speculation about its future and led to large withdrawals of cash by its customers.
Shares in Credit Suisse bounced back from historic lows last week as its leadership sought to reassure markets.
This report’s information was first seen on REUTERS; to read more, click this link.
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