Credit Suisse Shares Jump 35% after Securing $54 Billion Loan from Swiss Central Bank

In premarket trading on Thursday, shares of Credit Suisse jumped by over 35% after the bank received a $54 billion loan from the Swiss National Bank to boost liquidity and investor confidence.

Credit Suisse shares were traded at $2.48 per share, a 35% increase from Wednesday’s closing price. Shares of Credit Suisse fell as much as 30% the day before after its largest investor, Saudi National Bank, said it would be unable to provide additional financial support to the embattled Swiss lender due to regulatory issues.

The Swiss bank’s move overnight managed to halt heavy selling in financial markets in Asian trade on Thursday, and European markets are expected to open higher.

Credit Suisse announced early Thursday that it will borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank.

The Swiss government had previously assured investors on Wednesday that Credit Suisse complied with “the capital and liquidity requirements imposed on systemically important banks” and it could access central bank liquidity if necessary.

Credit Suisse said that this step will “support Credit Suisse’s core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around client needs.” 

The bank has also announced that it will make a cash tender offer in connection with ten senior debt securities denominated in U.S. dollars for a maximum aggregate consideration of $2.5 billion, and a separate offer in connection with four senior debt securities denominated in Euros for a maximum aggregate consideration of 500 million Euros.