Saudis Double-Down On Credit Suisse Bailout
Credit Suisse's share extended Friday's gains this morning (after the record losing streak took the shares to new record lows), on reports that Saudi Arabian Crown Prince Mohammed bin Salman (MbS) will take a stake in the Swiss firm’s planned investment bank spin out.
Bloomberg reports that, according to people with knowledge of the matter, MbS may put about $500 million into the vehicle. Notably, The Saudi National Bank is already an anchor investor in Credit Suisse’s $4 billion ongoing capital raise.
It’s unclear whether the Crown Prince’s interest would come in a personal capacity or through other investment vehicles in the Kingdom.
Other investors may reportedly include former Barclays Plc chief executive Bob Diamond’s Atlas Merchant Capital.
Credit Suisse announced on Monday that it had also completed the $5 billion in new debt issuance, part of plans to shore up its balance sheet, and would provide an updated funding plan for 2023 when it releases fourth quarter earnings on Feb. 9.