Announcing A Loan From The Swiss National Bank Sends Credit Suisse Shares Up Over 18%

There was a 30 percent surge in Credit Suisse shares on Thursday's market opening after the bank announced that it would borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank as part of its repayment program.

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Despite a slight cooling in the rally during the day's trading, the Swiss-listed stock was still up 18.8% by the time markets closed in the afternoon, despite a slight slowdown in the rally earlier in the day.

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A short-term liquidity facility and a covered loan facility have been announced by the bank's embattled lender.

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Credit Suisse "meets the capital and liquidity requirements imposed on systemically important banks," according to the Swiss National Bank and Swiss Financial Market Supervisory Authority.

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The Swiss bank also offered to buy back debt worth approximately 3 billion francs relating to 10 senior secured debt obligations denominated in U.S. dollars and four senior secured debt obligations denominated in euros.

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According to a news release issued Wednesday, Credit Suisse CEO Ulrich Koerner said the measures reflect Credit Suisse's commitment to strengthening itself as it works to drive value to clients and other stakeholders through its strategic transformation.

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“In pursuing our strategic transformation, the [Swiss National Bank] and FINMA are to be commended. I, myself, and my team are committed to moving forward rapidly to create a simpler and more focused bank built around the needs of our clients."

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Several European banks' stocks dropped this week on fears of contagion following Silicon Valley Bank's failure, including Credit Suisse, Switzerland's second-largest bank.

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On Tuesday, the Swiss bank announced "material weaknesses" in its 2021 and 2022 financial reports, although its financial statements remained accurate. This news deepened its losses, however.

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A top investor, the Saudi National Bank, made a decision not to pump in any more cash on Wednesday, plunging Credit Suisse's shares to a fresh all-time low for the second day in a row.

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A significant component of Credit Suisse's $4.2 billion capital raise, Saudi National Bank purchased a 9.9% stake as part of a sweeping risk management and performance improvement reform.