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Credit Suisse to borrow $54 billion from Swiss National Bank as it looks to shore up liquidity amid the banking crisis<!-- wp:html --><p>Credit Suisse to borrow $54 billion from Swiss National Bank as it looks to shore up liquidity amid the banking crisis.</p> <p class="copyright">Spencer Platt/Getty Images</p> <p>Credit Suisse is set to borrow $54 billion from Swiss National Bank, it said Wednesday.<br /> It also announced cash offers for senior debt securities of up to $3 billion.<br /> The Swiss bank said it would use the cash to "create a simpler and more focused bank built around client needs."</p> <p>Credit Suisse said Wednesday it is borrowing up to 50 billion Swiss francs, or $53.68 billion, from the Swiss National Bank as its stock plunged this week amid fears it <a href="https://markets.businessinsider.com/news/stocks/credit-suisse-cds-spreads-bond-insurance-stock-price-banking-contagion-2023-3">will default on debt.</a></p> <p>"Credit Suisse is taking decisive action to pre-emptively strengthen its liquidity by intending to exercise its option to borrow from the Swiss National Bank," <a href="https://www.credit-suisse.com/about-us-news/en/articles/media-releases/csg-announcement-202303.html" target="_blank" rel="noopener">it said in a statement.</a></p> <p>The Swiss bank said the borrowing will be made under a covered loan facility and a short-term liquidity facility. They will be fully collateralized by "high quality assets," the bank said. </p> <p>It also said the cash injection would support its "core businesses and clients" as it "takes the necessary steps to create a simpler and more focused bank built around client needs."</p> <p>Credit Suisse also said it is creating a cash tender offer for 10 dollar-denominated senior debt securities for a total value of $2.5 billion, and four other Euro-denominated securities of up to 500 million euros.</p> <p>These offers will expire on March 22, the bank said.</p> <p>"These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders," Credit Suisse CEO Ulrich Koerner said in the statement.</p> <p><a href="https://markets.businessinsider.com/news/stocks/credit-suisse-shares-plungesaudi-backer-rules-out-more-investment-2023-3?utm_medium=ingest&utm_source=markets">Shares of Credit Suisse plunged as much as 30% on Wednesday</a> to record lows. They are down almost 42% year-to-date.</p> <div class="read-original">Read the original article on <a href="https://www.businessinsider.com/credit-suisse-billions-borrow-swiss-national-bank-2023-3">Business Insider</a></div><!-- /wp:html -->

Credit Suisse to borrow $54 billion from Swiss National Bank as it looks to shore up liquidity amid the banking crisis.

Credit Suisse is set to borrow $54 billion from Swiss National Bank, it said Wednesday.
It also announced cash offers for senior debt securities of up to $3 billion.
The Swiss bank said it would use the cash to “create a simpler and more focused bank built around client needs.”

Credit Suisse said Wednesday it is borrowing up to 50 billion Swiss francs, or $53.68 billion, from the Swiss National Bank as its stock plunged this week amid fears it will default on debt.

“Credit Suisse is taking decisive action to pre-emptively strengthen its liquidity by intending to exercise its option to borrow from the Swiss National Bank,” it said in a statement.

The Swiss bank said the borrowing will be made under a covered loan facility and a short-term liquidity facility. They will be fully collateralized by “high quality assets,” the bank said. 

It also said the cash injection would support its “core businesses and clients” as it “takes the necessary steps to create a simpler and more focused bank built around client needs.”

Credit Suisse also said it is creating a cash tender offer for 10 dollar-denominated senior debt securities for a total value of $2.5 billion, and four other Euro-denominated securities of up to 500 million euros.

These offers will expire on March 22, the bank said.

“These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders,” Credit Suisse CEO Ulrich Koerner said in the statement.

Shares of Credit Suisse plunged as much as 30% on Wednesday to record lows. They are down almost 42% year-to-date.

Read the original article on Business Insider

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