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Credit Suisse's Thiam asks investors to support capital increase

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Credit Suisse group chief executive officer Tidjane Thiam asked investors for permission to tap them for about US$6 billion in equity.

[ZURICH] Credit Suisse group chief executive officer Tidjane Thiam asked investors for permission to tap them for about US$6 billion in equity.

The bank plans to use the money to help meet tougher capital requirements. Switzerland is introducing new rules that will force Credit Suisse and UBS Group AG to hold bigger buffers against potential losses.

"We are confident that with the proposed capital increases, Credit Suisse will be in a position not just to implement its strategic plans but also to meet the known future regulatory capital adequacy requirements," Chairman Urs Rohner said in prepared remarks to shareholders gathered in Bern.

Investors are voting on the bank's first share sale since 2012, part of an overhaul of operations announced last month.

The bank is seeking to raise 1.32 billion Swiss francs (S$1.83 billion) through a direct placement with some qualified investors and also wants to sell shares for as much as 4.7 billion francs to all shareholders.

BLOOMBERG