As one of its largest shareholders, Saudi National Bank supports the reorganization of Credit Suisse, yet for the time being it has no plans to pump more money into the bank.
With nearly 10 percent of Credit Suisse's share capital, Saudi National Bank (SNB) is now one of the largest owners of the Swiss bank. But for SNB, that should be enough for now, Chairman Ammar Al Khudairy said in an interview with «Bloomberg TV», ruling out additional equity capital for the time being.
Tactical Shareholder
«We like where we are at 9.9 percent. At this stage, we’re not interested in moving from a tactical shareholder into a different category in terms of our relationship with Credit Suisse,» he told the media outlet.
For Saudi National Bank, which is 37 percent owned by the kingdom's sovereign wealth fund, the deal worth around $1.5 billion in its first major international acquisition. The investment will be funded from its cash resources and may seek other opportunities abroad.
The Right Opportunity
«We certainly are open to any deals if they’re opportunistic and if they make economic sense to us, but if you think we’re going to go out and buy a European bank or something like that, that’s not on the cards right now,» he said.
The investment also sets in motion Crown Prince Mohammed Bin Salman's plan to encourage Saudi Arabia's largest companies to expand globally, raise the kingdom's profile as a serious investor, and diversify its economy.
Excellent Return Potential
SNB was created less than a year ago through a $15 billion merger. It will use the investment to expand its wealth management and investment banking business within the Kingdom and globally, and explore how the two companies can develop joint initiatives in the Kingdom, Al Khudairy said.
He said that as a stand-alone investment, joining Credit Suisse has «excellent return potential» in the next three to five years. Beyond that, he said, there could be some opportunities relevant to the home market.
