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Credit Suisse raises CHF4.1B in rights offering

Credit Suisse Group AG raised net proceeds of approximately CHF4.1 billion after 99.2% of shares on sale in a rights offering were subscribed.

At the June 7 end of the subscription period, 390,206,406 newly issued shares were subscribed. Credit Suisse, which offered 393,232,572 newly issued registered shares with a nominal value of 4 centimes apiece at a price of CHF10.80 per share in the offering, intends to sell the remaining 3,026,166 shares in the market.

Following the offering, Credit Suisse's issued registered shares will increase to 2,556,011,720, while its issued share capital will rise by roughly CHF15.8 million to approximately CHF 102.2 million from roughly CHF86.5 million.

The new shares are expected to list and begin trading on the SIX Swiss Exchange June 8, with delivery of the shares against payment of the offer price also expected the same day.

The Swiss lender added that if the rights issue occurred March 31, its look-through BIS consolidated common equity Tier 1 capital ratio would have been roughly 13.4%, while its look-through BIS consolidated Tier 1 leverage ratio would have been around 5.1%, based on the group's consolidated capital position at the end of the first quarter.

As part of an enlarged underwriting syndicate for the issuance, Credit Suisse AG acted as global coordinator in the rights offering, while Deutsche Bank and Morgan Stanley served as joint lead managers and joint book runners. Banca IMI, Banco Santander, BBVA, BNP PARIBAS, BofA Merrill Lynch, Citigroup, Goldman Sachs International, HSBC, ING, J.P. Morgan, Natixis, RBC Capital Markets, Société Générale Corporate & Investment Banking and UniCredit Bank AG acted as joint book runners, while ABN AMRO, Bank Vontobel, COMMERZBANK, Crédit Agricole CIB, KBC Securities, Mediobanca, Mizuho International plc, Rabobank, SMBC Nikko and Zürcher Kantonalbank served as co-lead managers.

Credit Suisse aims to eliminate concerns over its capital levels with the offering, following its decision to abandon plans to partially float domestic banking unit Credit Suisse (Schweiz) AG.