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Saudi National Bank (SNB) will invest SAR 5.7 billion ($1.52 billion) in Credit Suisse to achieve a shareholding of 9.9%, which is part of a longer-term strategy that could see the establishment of an independent investment bank.
The investment is part of SNB’s participation in Credit Suisse’s capital raise to assist with its growth and transformation, after which SNB will explore strategic partnerships with the Credit Suisse, the bank said in a statement to Saudi Stock Exchange (Tadawul) today.
The Saudi bank, which was formed after a merger between National Commercial Bank and Samba Financial Group last year, has committed to participate in the private placement of non-pre-emptive shares by Credit Suisse and to participate in subsequent rights offerings by Credit Suisse.
SNB may also participate in future capital raising exercises by Credit Suisse, which aims to support the establishment of an independent investment bank and to develop SNB’s asset management, wealth management and investment banking in the kingdom, the statement noted.
(Writing by Imogen Lillywhite; editing by Seban Scaria)
