Saudi National Bank set to acquire 9.9% stake in Credit Suisse for $1.5 billion

Saudi National Bank plans to invest $1.5 billion in Credit Suisse for 9.9% stake

Saudi National Bank (SNB), the Gulf state’s largest lender, said it is participating in Credit Suisse Group’s capital raising and committed to investing as much as $1.51 billion (CHF 1.5 billion) for a stake of up to 9.9%.

The Riyadh-based lender said that it intends to explore certain ‘strategic partnerships’ with Credit Suisse in complementary geographies and businesses following the capital raise.

“The purpose of this investment and strategic partnership for Saudi National Bank is to allow it to develop its businesses in Asset Management, Wealth Management and Investment Banking in Saudi Arabia and the region,” SNB said in a statement Thursday.

Last week, Credit Suisse unveiled plans to raise $4.01 billion (CHF 4 billion) from investors, cut thousands of jobs and shift its focus from investment banking more toward rich clients. With a market capitalization of $70.1 billion (SAR 263 billion) as of 30 October 2022, SNB’s potential investment is the bank’s first major international acquisition.

“This partnership will bring significant tangible benefits to our clients in key areas such as Asset Management, Wealth Management, and Investment Banking,” Ammar Alkhudairy, Chairman of Saudi National Bank, said in a statement. “I am confident that the initiatives announced today will enhance both companies’ global presence, enable us to better meet the needs of our respective clients and generate value for both sets of shareholders.”

The deal will make SNB one of Credit Suisse’s biggest shareholders alongside Harris Associates. The Swiss bank already counts Saudi Arabian conglomerate Olayan Group and Qatar Investment Authority among some of its top shareholders.

The Swiss National Bank, the central bank of Switzerland, endorsed the measures Credit Suisse has taken to transform the embattled lender and shore up its capital.

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