Once Credit Suisse's largest shareholder, the Qatar Investment Authority cut its stake in the bank last year. Now it wants back in.

Last year, the Qatar Investment Authority (QIA) cut its stake in Credit Suisse below 5 percent, thereby losing the crown as the bank's largest shareholder. Now, it plans to take part in the share sale that is part of Credit Suisse's plan to raise around 4 billion Swiss francs of capital, according to a report in the «Financial Times» (paywall) Wednesday. 

Close Relationship

In 2011 the Qataris helped Credit Suisse avoid a state bailout by buying convertible bonds worth 2.5 billion francs ($2.7 billion) and $1.72 billion earning over 380 million francs of interest up to 2018. In 2017, the QIA also reduced its holding of Credit Suisse shares, but held onto the convertible bonds. This is understandable given the bonds had coupons between 9 and 9.5 percent.

The Saudi National Bank will invest 1.5 billion francs, which will give it a stake of 9.9 percent in Credit Suisse. According to the report, two other investors will join the SNB investing in the placement of the shares, including QIA. The third investor is said to be a Swiss group, although not a rival bank.

The largest shareholder of Credit Suisse, Harris Associates, is not taking part in the placement, but is seen buying more shares as part of the rights issue, the «FT» said, citing people familiar with the matter. 

Saudi Investment

Another major investor, Saudi Arabia's Olayan Group will not take part in the share placement, but will participate in the rights issue in order to maintain an approximately 5 percent stake in Credit Suisse. 

Following the sale of the shares, which is to be approved at an extraordinary general meeting (EGM) on November 23, the SNB, QIA, and Olayan will hold from 20 to 25 percent of Credit Suisse shares. The SNBs share of 9.9 percent might seem like a rounding error from 10 percent, but it is doing so to keep it below 10 percent to avoid complications with Swiss regulatory authorities, the «FT» said, citing people with knowledge of the plans.

Credit Suisse and the QIA declined to comment to the «Financial Times.»