Saudi National Bank to raise capital in Credit Suisse by $4.1bn Saudi National Bank to raise capital in Credit Suisse by $4.1bn
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Saudi National Bank to raise capital in Credit Suisse by $4.1bn

Saudi National Bank to raise capital in Credit Suisse by $4.1bn

Saudi National Bank was an anchor investor in Credit Suisse’s capital raise and now holds 9.9 per cent in the firm

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Saudi National Bank to raise capital in Credit Suisse by $4.1bn

Saudi National Bank, which holds about a 10 per cent stake in Credit Suisse AG, plans to raise its capital by $4.1bn to strengthen its financial position.

The lender, which is 37 per cent owned by the kingdom’s sovereign wealth fund, will boost its capital by about a third to SAR60bn ($16bn) 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 per cent 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 $500m 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 per cent, the most in more than three weeks. The bank also said it will pay SAR0.60 per share dividend for second-half of last year.

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