With the buyback that has now been announced, the bank is signaling that it has sufficient liquid funds.
(Photo: Reuters)
Zurich The crisis-plagued Credit Suisse wants to regain the initiative with a bond buyback. The major Swiss bank announced on Friday that it would buy back a total of 20 bonds with a total volume of up to three billion francs. “The transactions are consistent with our proactive approach to managing our total debt and optimizing interest expense, and allow us to take advantage of market conditions to repurchase debt at attractive prices,” it said.
Earlier in the week, vague speculation on social media about the financial health of the institution had sent shares to record lows and also depressed bond values. Experts feared that in response, customers could start withdrawing assets from Credit Suisse and doing business with other banks. With the buyback that has now been announced, the bank is signaling that it has sufficient liquid funds.
Credit Suisse is launching a cash offer for eight senior notes denominated in euros or pounds for a total value of up to one billion euros. At the same time, the institution announced a separate cash offering for 12 dollar-denominated senior notes totaling up to $2 billion. The offers are scheduled to expire on November 3rd and November 10th respectively.
More: The second largest bank in Switzerland needs billions and a new strategy – three options are obvious.
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