(MENAFN- The Peninsula) Bloomberg
Doha: The Qatar Investment Authority boosted its stake in Credit Suisse Group AG to 6.87 percent, according to a filing from the sovereign wealth fund.
With the purchase, QIA becomes the Swiss bank's second largest shareholder - just behind the Saudi National Bank - after Credit Suisse issued new shares as part of a 4bn Swiss franc ($4.3bn) capital raise it completed in December.
Earlier this month, the Swiss lender's longtime largest shareholder Harris Associates, which once held a stake of about 10%, reported a holding of below 3%.
Credit Suisse's Shareholder Harris Associates Falls Below 3percent The Saudi National Bank, 37 percent owned by the nation's sovereign wealth fund, was an anchor investor in Credit Suisse's capital raise and now holds a near 10 percent stake in the firm, making it the top shareholder.
Credit Suisse has long counted on wealthy Middle Eastern investors as top shareholders and they've often invested in times of need. QIA participated in Credit Suisse's approximately $2bn convertible note issuance in April 2021. That helped shore up the balance sheet after the bank lost $5.5bn tied to the collapsed hedge fund Archegos Capital Management. A representative for Credit Suisse declined to comment. The Financial Times first reported the news.
Credit Suisse is undergoing a strategic revamp which includes plans to spin out its capital markets, advisory and leveraged finance businesses into a boutique unit under the Credit Suisse First Boston branding, while integrating its remaining trading businesses more closely with the wealth management business.
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