Posted on June 03, 2017
Qatar Investment Authority (QIA) has increased its stake in Credit Suisse to 5.01 percent of shares, Credit Suisse said on Thursday.
"In a disclosure report dated May 30, 2017, Credit Suisse Group was notified that as of May 24, 2017 the Qatar Holding held 17.98 percent of the voting rights entered in the Commercial Register (5.01 percent shares; 12.96 percent purchase rights)," Zurich-based Credit Suisse said in a statement. Qatar Holding is controlled by Qatar Investment Authority, Qatar's acquisitive sovereign wealth fund. In a November 2016 disclosure on the Swiss stock exchange, Qatar Holding's share stake was given atn 4.93 percent.
Qatar Investment Authority is the fourth-largest holder of Credit Suisse shares, according to disclosures by the bank. The increased stake size follows a roughly 4 billion Swiss franc ($4.1 billion) rights issue by Credit Suisse last month. In a notice on the Swiss stock exchange announcing the stake increase, 'acquisition' is given as the facts and circumstances triggering the obligation to notify. The bulk of QIA's overall 17.98 percent Credit Suisse holding is made up by contingent convertible bonds, often referred to as CoCos, which convert into equity if the bank's core capital ratio dips below a certain level.
Qatar Holding became one of Credit Suisse's biggest shareholders in 2008, according to Credit Suisse data. Qatar was one of several sovereign-wealth funds that bought Credit Suisse bonds that automatically convert to shares when it bolstered its capital base earlier this year. Switzerland's second-largest lender has also formed a joint venture Aventicum with QIA to expand their investments in developing economies. The firm invests in emerging and frontier markets in the Middle East, North Africa and Turkey.
Credit Suisse has advised QIA on several deals including the purchase of the luxury department store Harrods. Credit Suisse's asset-management unit manages about $391 billion in assets and offers mutual funds, alternative investments and other products to institutional clients and private investors.
source: Reuters