Credit Suisse shares soar over 20% on Swiss National Bank loan announcement
Credit Suisse shares soared over 30% at Thursday’s market open after the bank said it will borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank.
The stock’s rally cooled slightly in early trading, but shares were still up 21.8% at 10:02 a.m. London time.
The embattled lender announced late Wednesday that it would exercise its option to borrow from the Swiss central bank under a covered loan facility and a short-term liquidity facility.
The Swiss National Bank and the Swiss Financial Market Supervisory Authority said in a statement Wednesday that Credit Suisse “meets the capital and liquidity requirements imposed on systemically important banks.”
The bank also offered to buy back around 3 billion Swiss francs’ worth of debt, relating to 10 U.S. dollar-denominated senior debt securities and four euro-denominated senior debt securities.
“These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders,” Credit Suisse CEO Ulrich Koerner said in the release Wednesday.
“We thank the [Swiss National Bank] and FINMA as we execute our strategic transformation. My team and I are resolved to move forward rapidly to deliver a simpler and more focused bank built around client needs.”
Credit Suisse stock began to slide at the start of the week, along with many other European banks, on fears of contagion in light of the collapse of Silicon Valley Bank.
This report’s information was first seen on CNBC; to read more, click this link.