Credit Suisse becomes an Arab bank

Qatar’s wealth fund, the Qatar Investment Authority (QIA), increased its stake in Swiss Bank Credit Suisse from 5.6 percent to 6.87 percent. Thus, QIA Credit Suisse became the second largest shareholder of the Group.

Credit Suisse representatives declined to comment on the news first reported by the Financial Times.

FIRST SAUDI, SECOND QATAR

With the acquisition, QIA received new shares as part of Credit Suisse’s 4 billion Swiss francs ($4.3-80.8 billion) capital increase completed in December.

Thus, QIA became the second largest shareholder of the Swiss bank, just after the Saudi National Bank. The Saudi National Bank also owns 37 percent of the Saudi Wealth Fund. The Saudis also own about 10 percent of the Swiss Bank.

Harris Associates, which once owned about 10 percent of the shares and was long the largest shareholder in the Swiss bank, reported that its stake fell below 3 percent with the capital increases.

LARGEST SHAREHOLDERS IN THE GULF

Investors from the Middle East, who are the main shareholders of the Swiss Bank, often raise capital during the bank’s critical periods.

QIA was previously involved in Credit Suisse’s issuance of approximately $2 billion in convertible bonds in April 2021. During this period, the bank lost $5.5 billion due to the investment fund.