Saudi National Bank, which holds about a 10% stake in Credit Suisse AG, plans to raise its capital by $4.1 billion to strengthen its financial position.
(Bloomberg) —
Saudi National Bank, which holds about a 10% stake in Credit Suisse AG, plans to raise its capital by $4.1 billion to strengthen its financial position.
The lender, which is 37% owned by the kingdom’s sovereign wealth fund, will boost its capital by about a third to 60 billion Saudi riyals ($16 billion) through a bonus share offering, it said in a statement on Thursday. The board recommended one share for every three shares held.
“The recommendation is aimed to strengthen the bank’s financial position which contributes to achieving its strategic objectives,” the bank said, without giving further details.
Saudi National Bank was an anchor investor in Credit Suisse’s capital raise and now holds 9.9% in the firm, making it the Swiss lender’s top shareholder. In an interview in October, the bank’s Chairman Ammar Al Khudairy said he liked Credit Suisse’s new leadership and their resolve to execute on its turnaround plan, though any additional equity was “out of the question.”
Saudi Crown Prince Mohammed bin Salman is now weighing whether to put about $500 million into Credit Suisse’s planned investment bank spin out, people with knowledge of the matter have said.
Saudi National Bank shares gained as much as 2.9%, the most in more than three weeks. The bank also said it will pay 0.60 riyal per share dividend for second-half of last year.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.