Credit Suisse raised $5 billion on the bond market through a HoldCo issue as it seeks to reduce its need for debt capital over the medium term.
Credit Suisse has raised billions in fresh debt capital in recent weeks. HoldCo issues equivalent to $5 billion have been completed since the October 27 strategy update, according to a statement from the bank Monday.
It raised the funds through various securities issued by the holding company and through AT1 bonds, it said.
Interest Payments Can be Suspended
AT1 bonds are included in the bank's core capital, meaning creditors are jointly liable for a bank's losses. According to an investor presentation, Credit Suisse is prohibited from making AT1 interest payments under certain conditions, such as if regulatory capital requirements are not met or the financial market regulator prohibits such interest payments.
The presentation goes on to say Credit Suisse plans to raise a total of approximately 26 billion Swiss francs ($27.7 billion) in long-term debt by the end of 2022. Of which around 16 billion francs are attributable to HoldCo and around 7 billion francs to OpCo.
Details With Annual Results
Over the next two years, total redemptions of 22 billion Swiss francs are planned for next year with a further 17 billion francs in 2024 to strengthen liquidity ratios and reduce the group's funding requirements.
Credit Suisse plans to publish the financing plan for 2023 on February 9, 2023, along with annual results.
UBS Calls Teir 1 Bond
Earlier on Monday, UBS announced its intention to redeem an additional Tier 1 bond (ISIN CH0400441280) with a total outstanding amount of $2.0 billion, on January 31, of next year, which is the first callable date, as finews.com reported.
