Qatar's sovereign wealth fund is no longer Credit Suisse's largest shareholder after cutting its stake.
Qatar has cut its stake in Credit Suisse to below the 5 percent threshold, a filing from Wednesday with U.S. regulator, the Securities and Exchange Commission shows.
This takes the stake, which the emirate holds through sovereign wealth fund Qatar Investment Authority to 4.85 percent. The result is that U.S.-based fund manager Blackrock moves up into the top position with a 5.4-percent share.
The Swiss bank and Qatar have historically enjoyed a close relationship. In 2011 the Qataris helped Credit Suisse avoid a state bailout by buying convertible bonds to the tune of 2.5 billion francs ($2.7 billion) and $1.72 billion earning over 380 million francs in interest up until 2018.
Stake Cut in 2017
In 2017 QIA’s representative, Jassim Bin Hamad J.J. Al Thani, left the board and the fund reduced its holding. The investment has cost the Qataris dear, with Credit Suisse’s share price falling by two thirds over the last 10 years to half of their book value.
Recently another member of the ruling family and a former Qatar prime minister, Sheikh Hamad bin Jassim Al Thani, publicly called for mergers in the European banking sector. The emirate is also a major shareholder in Deutsche Bank.
Millions Tied up in Greensill Funds
The prominent al Thani also invested around $200 million of his own money in Credit Suisse’s Greensill funds which were frozen in March when Greensill collapsed.
Credit Suisse Chairman António Horta-Osório recently said of the bank’s major shareholders in an interview with the «Neue Zuercher Zeitung» (in German, behind paywall) that he was sure they were interested in the future of the bank.
«At the end of the day they expect Credit Suisse, just like any other company, to generate value and increase the share price,» he added.
