Credit Suisse to buy back CHF3bn of its own debt

By Abigail Townsend

Credit Suisse Group has offered to buy back around CHF3bn (£2.7bn) of its own debt, the embattled lender confirmed on Friday.

The Swiss giant is making a cash tender offer in relation to eight euro or sterling dominated senior debt securities, for an aggregate consideration of up to €1bn. The offer will run alongside a separate offer for 12 US dollar dominated bonds, for an aggregate consideration to $2bn.

The bank said: “The transactions are consistent with our proactive approach to managing our overall liability composition and optimising interest expense, and allow us to take advantage of market conditions to repurchase debt at attractive purchases.”

Separately, it also confirmed it was selling the 184-year old five star Savoy Hotel in Zurich’s financial district, as part of a regular review of its global real estate assets.

Credit Suisse has endured a torrid two years. Hit by a number of corporate scandals, including the collapse of Greensill Capital and Archegos Capital, and mounting financial losses, in July it unexpected replaced chief executive Thomas Gottstein with Ulrich Korner, its head of asset management.

Second-quarter losses came in at CHF1.6bn, compared to profits of CHF253m a year previously.

Its shares have also come under severe pressure, and have lost 51% this year so far, although they were trading 5% higher on Friday as at 1030 BST.

The Zurich-based bank is expected to unveil a major strategy overhaul alongside its third-quarter results, due on 27 October.

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