Credit Suisse to borrow up to $54 bln from Swiss National Bank

Embattled Swiss lender Credit Suisse Group AG said on early-Thursday that it will exercise an option to borrow up to 50 billion Swiss francs ($53.68 billion) from the Swiss National Bank under two loan facilities to shore up liquidity conditions.

The bank said the option will include a covered loan facility, as well as a short-term liquidity facility, as it moves to “preemptively strengthen liquidity.” 

The bank also said it will open a cash tender offer to repurchase ten dollar-denominated debt securities for up to $2.5 billion, and a separate tender offer for euro-denominated debt securities for up to €500 million. 

The move comes after the bank’s shares plummeted to a record low on Wednesday as its top investor, Saudi National Bank, said it was unable to provide more funding to the lender. 

“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 a statement.

The Swiss National Bank had also pledged support for the lender on Wednesday.