Troubled lender Credit Suisse has announced its intention to borrow from the Swiss National Bank to help strengthen liquidity amid continued loss of confidence.
Credit Suisse will be borrowing up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank (SNB) under a covered loan facility and short-term liquidity facility, according to a statement.
«This additional liquidity would support Credit Suisse’s core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around client needs,» the bank said.
Proactive Approach
In addition, Credit Suisse is making cash tender offers in relation to ten US dollar-denominated senior debt securities and four euro-denominated senior debt securities for an aggregate consideration of up to $2.5 billion and 500 million euros ($530 million), respectively. Subject to various conditions, both offers will expire on 22 March 2023.
«The transactions are consistent with our proactive approach to managing our overall liability composition and optimizing interest expense and allow us to take advantage of current trading levels to repurchase debt at attractive prices,» Credit Suisse added.
