Credit Suisse shareholders overwhelmingly approved a plan to raise 4 billion francs ($4.2 billion) on Wednesday. The capital raising plans are split into two parts. The first, which was backed by 92% of shareholders, grants shares to new investors including the Saudi National Bank via a private placement. The new share offering will see the SNB take a 9.9% stake in Credit Suisse, making it the bank’s largest shareholder.
The approval came after Credit Suisse on Wednesday announced it expects a pre-tax loss of up to 1.5 billion Swiss francs ($1.58 billion) in its fourth quarter, saying the "challenging" economic and market environment had an adverse effect on client activity across its business. The warning sent Credit Suisse's shares reeling, with the stock down 4.8% in morning trading, while the cost of insuring the bank's debt against default also rose.