Credit Suisse to raise $5 billion with two new debt issues

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LONDON, Nov 9 (Reuters) – Credit Suisse (CSGN.S) was set to raise a total of $5 billion through two debt sales on Wednesday, but was forced to pay to attract investors after a series of scandals and a broader rise in market borrowing costs.

The debt sales included a three billion euro bond and a two billion US dollar bond, a source familiar with the matter told Reuters.

The bank raised three billion euros ($3.01 billion) through the sale by its holding company of a bond maturing in March 2029, the source said. Investor orders for the bond, redeemable in March 2028, exceeded 7.5 billion euros and its price was set at a spread of 495 basis points from the mid-swap level, they added.

But reflecting generally higher borrowing costs and the bank’s recent woes, the coupon was the highest on any debt issue from the bank.

The Swiss bank said last month it planned to raise 4 billion Swiss francs ($4 billion) in new equity from investors, cut thousands of jobs and focus even more on banking investment to wealthy clients in a bid to put years of scandals behind. this.

Separately, the source added that Credit Suisse had also launched a $2 billion 11-year bond issue, which was to be priced at a 485 basis point spread to US Treasuries and finalized further. late in the day.

Credit Suisse was the sole bookrunner for both issues. The euro-denominated issue was to be rated Baa2/BBB-/BBB by Moody’s, S&P and Fitch.

S&P Global Ratings last week downgraded Credit Suisse Group’s long-term credit rating to one notch above junk bond status, citing “significant execution risks” in the bank’s efforts to get back on solid footing after a series of scandals and losses.

($1 = 0.9961 euros)

Reporting by Chiara Elisei and Yoruk Bahceli; edited by Dhara Ranasinghe, Kirsten Donovan

Our standards: The Thomson Reuters Trust Principles.

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