Credit Suisse aims to secure CHF1.76bn from new share placement scheme. Credit: stevepb from Pixabay.

Credit Suisse Group has expanded the banking syndicate to include around 20 banks for a CHF4bn ($4bn) rights issue to back its newly unveiled overhauling plan.

The beleaguered Swiss bank has revealed that new investors have made a commitment to buy approximately 462 million new shares at a purchase price of CHF3.82 ($3.83), which is equal to 94% of the reference price.

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It aims to secure a total of CHF1.76bn of proceeds from the share placement scheme.

Saudi National Bank (SNB) plans to buy around 307 million of the new shares to own a 9.9% stake in Credit Suisse.

In addition, the bank plans to issue around 889 million shares at a price of CHF0.04 each to its existing investors.

Credit Suisse also noted that seven pre-emptive subscription rights will entitle their holder to buy two new shares at a previously announced discount of around 32% on the reference price.

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In a statement, Credit Suisse said: “The issuance of the new shares is conditional upon approval by the Extraordinary General Meeting of the capital increases to create the shares which is expected to be held on 23 November 2022.

“The final terms of the rights issue are expected to be communicated on 24 November 2022.”

In case the shareholders of the bank discard the plan, Credit Suisse plans to issue 1.8 billion new shares at a price of CHF2.27 each. This offer will help the bank to raise CHF4bn, noted the bank.

Credit Suisse further stated that it would act as global coordinator for the planned rights.

Deutsche Bank, Morgan Stanley, RBC Capital Markets and Société Générale are engaged as joint lead managers and joint bookrunners.

ABN AMRO, along with ODDO BHF SCA, Banco Santander, Bank of America, Barclays, BNP Paribas, Citi and others are involved as joint bookrunners.