Credit Suisse to raise 4 billion Swiss francs in rights offering

Credit Suisse has just reported first quarter earnings which show Switzerland’s second-largest bank beating expectations helped by a strong performance for its wealth management unit.

Investors have been awaiting further news on Credit Suisse’s funding plans with concerns in the wake of Deutsche Bank’s 8 billion euro capital raise that the bank would announce a similar large-scale raise weighing on its share price in recent weeks.

On Wednesday the bank announced it would seek to pursue a fully underwritten rights offering with anticipated net proceeds of around CHF 4 billion and would not seek to divest any of its divisions. The Swiss financier said it expects such a capital increase to lead to a pro forma look-through CET1 ratio of around 13.4 percent.

Credit Suisse also unveiled a proposal to switch to an all-cash dividend in the future.

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