The Swiss bank's shareholders take up $584 million in convertibles backstopped by its largest investors.
Zurich-based Credit Suisse saw existing shareholders with preferential subscription rights take almost 60 percent of its second batch of mandatory convertible notes, it said in a statement.
As originally agreed, the remaining 40% balance was purchased by a select group of core shareholders, institutional investors and ultra-high-net-worth individuals.
The move is part of a $1.9 billion cash infusion to bolster its capital, after the Archegos and Greensill debacles in the first quarter.
The cap hike was open to Swiss shareholders, but not to ones in the U.S., U.K., and other major retail investor markets such as Japan or Hong Kong.
Hedge Fund Tears Hole
Archegos, a family office-hedge fund, tore a 4.4 billion franc hole in Credit Suisse's accounts in March. Credit Suisse's capital ratios have fallen as a result: its common equity tier 1, or CET1, fell to 12.2 percent, below its 13 percent target. The bank expects another 600 million francs in related losses in the current quarter.
The mandatory convertible notes – equivalent to 203 million shares – are expected to raise the CET1 ratio by 0.55 to 0.60 percent. The notes are due to be admitted for provisional trading on the Swiss exchange from Wednesday.
