He Credit Suisse asked for a loan 50 billion Swiss francs (about 54,000 million dollars) to the swiss central bank to “proactively strengthen its liquidity”.
The bank lived this Wednesday its blackest trading day by losing a quarter of its value on the stock market and dropping its shares to a historically low level, below 2 Swiss francs, something never seen in its 167-year history, a collapse that dragged down other European bank values.
“Credit Suisse is taking decisive steps to preemptively strengthen its liquidity with the intention of exercising its option to borrow from the Swiss National Bank (SNB) up to 50 billion Swiss francs ($54 billion) under a Covered Loan Serviceas well as a short-term liquidity service, which are fully guaranteed by high-quality assets,” the entity explained in a statement released early Thursday morning.
Furthermore, he announcedOffers from Credit Suisse International to repurchase certain OpCo senior debt securities for cash up to approx. 3 billion Swiss francs (3.200 million dollars)”.
He Swiss National Bank (BNS) had informed this Wednesday that if necessary it would provide liquidity to Credit Suisse, but assured that this bank meets strict liquidity and capital requirements which is required of all Swiss financial institutions to guarantee their stability.
Credit Suisse also announced that it has made a cash tender offer in connection with ten US dollar-denominated senior debt securities for total consideration of up to $2.5 billion.
At the same time, Credit Suisse reported a cash takeover bid separately in connection with four euro-denominated senior debt securities for total consideration of up to €500 million.
Both offerings are subject to various conditions set forth in the respective public offering memorandums. Offers will expire on March 22, 2023.
“The transactions are consistent with our proactive approach to managing our overall liability composition and optimizing interest expense, and allow us to take advantage of current trading levels to repurchase debt at attractive prices,” the Swiss entity added.
Credit Suisse – hit hard by the mistrust in its management and in the banking system in general after the bankruptcy of three banks in the United States in one week – asked the BNS and the Swiss Financial Market Supervisory Authority (FINMA) to make a strong statement of support to calm the markets.
Both institutions issued a joint statement stating that despite the problems in the financial sector in the United States “there are no indications that point to a risk of contagion for Swiss entities”.
The big ones european bags They experienced another episode of panic this Wednesday with the financial sector as the protagonist, the second this week, this time due to the refusal of the main shareholder of Credit Suisse to contribute more capital.
Milan fell 4.61%, Madrid, 4.37%; London, 3.83%; Paris, 3.58%; Frankfurt, 3.27%; and the Euro Stoxx 50 index, which groups the largest listed companies, 3.46%. Are the biggest declines so far this year in all cases.
Wall Streetfor its part, closed in mixed territory and the Dow Jones de Industriales, its main indicator, lost 0.87% in a new volatile day in which the New York parquet was affected by the fall in prices credit suisse shares.
The main index of the Tokyo Stock Exchange, the nikkeifell 2% at the opening of the session this Thursday, also infected by the fall in european markets fearing a financial crisis after the collapse of two US banks.
(With information from EFE)
The Swiss National Bank assured that Credit Suisse has guaranteed its stability
The scandals in which the Credit Suisse bank was involved in recent years
Credit Suisse, Silicon Valley Bank and investor fear: 5 keys to understanding the banking problems that are shaking the markets