Signage hangs at the entrance to a branch of Credit Suisse Group AG in Zurich, Switzerland, Sunday, September 25, 2022. Inflation in Switzerland has more than doubled since the beginning of the year and the Secretariat of State of Economic Affairs expects it to arrive. to a three-decade high of 3% by 2022. Photographer: Pascal Mora/Bloomberg via Getty Images
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Troubled bank Credit Suisse offered to buy back up to 3 billion Swiss francs ($3.03 billion) of debt securities on Friday, as it navigates a falling share price and increasing bets against its debt
The Swiss lender is also looking to sell its famous Savoy Hotel in Zurich’s financial district, reports said on Thursday, prompting market speculation that it is running for liquidity.
In a statement on Friday about the debt repurchase offer, Credit Suisse said: “The transactions are consistent with our proactive approach to managing our overall liability mix and optimizing interest expense and allow us to take advantage of conditions of the market to buy back the debt at attractive prices.”
It comes after Credit Suisse shares briefly hit an all-time low earlier this week and credit default swaps hit an all-time high, amid market jitters about its future.
The embattled lender is embarking on a massive strategic review under a new chief executive after a series of scandals and risk management blunders, and will give an update on progress alongside its quarterly earnings on 27 October
The costliest of the scandals was the bank’s $5 billion exposure to hedge fund Archegos, which collapsed in March 2021. Credit Suisse has since overhauled its management team, suspended share buybacks and has cut its dividend as it seeks to shore up its future.
Shares closed Thursday at 4.22 Swiss francs. They are down more than 50% so far.
On Friday, the bank announced a cash tender offer relating to eight senior debt securities denominated in euros or sterling, worth up to 1 billion euros ($980 million), along with 12 securities denominated in US dollars worth up to $2 billion. The offers on the debt securities will expire on November 3 and November 10, respectively.
This is breaking news and will be updated shortly.