The embattled Swiss bank said on Thursday it planned to raise 4 billion Swiss francs of fresh capital by selling stock to new and existing investors, as it outlined an overhaul that will cut thousands of jobs as it exits some activities.
SNB will take the up to 9.9% stake by taking part in a private placement of Credit Suisse's shares and, following that, taking part in a rights offering, "by taking up all of its statutory preferential subscription rights" as a shareholder.
Credit Suisse aims to separate its investment bank to create CS First Boston, focused on advisory and capital markets, and hopes to attract third-party capital and a set up a partnership with the new Credit Suisse.
Credit Suisse's overhaul, aiming to put behind it the worst crisis in its history, is the third attempt in recent years by successive chief executives to turn around the embattled group, which on Thursday also reported a third-quarter loss of more than 4 billion francs.
SNB said it may also take part in a future capital raise by Credit Suisse for the investment bank, the Saudi lender said in a bourse filing.
"The purpose of this investment and strategic partnership for Saudi National Bank is to allow it to develop its businesses in Asset Management, Wealth Management and Investment Banking in Saudi Arabia and the region," SNB said.
($1 = 0.9858 Swiss francs)
(Reporting by Yousef Saba; Editing by Edmund Klamann and Tomasz Janowski)
By Yousef Saba
