Von Pietro Lombardi
ZURICH (Dow Jones) – Overburdened by the collapse of US hedge fund Archegos Capital, Swiss bank Credit Suisse raised capital by offering convertible bonds. The bonds, which can be converted into a total of 203 million shares, have been placed with a host of primary shareholders, institutional investors and ultra-high net worth individuals, Credit Suisse Group AG announced.
The bank announced: “With this release, we expect further strengthening of our capital position in line with our target of achieving a CET1 ratio of around 13 percent.” The CET1 core capital ratio, an important indicator of the bank’s capital strength, was 12.2 percent at the end of March.
The bank expects additional charges of around 600 million Swiss francs in connection with the collapse of Archegos in the second quarter, after imposing fees of 4.4 billion Swiss francs in the first quarter.
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(End) Dow Jones Newswires
April 22, 2021 02:07 ET (06:07 GMT)
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