Credit Suisse Group (NYSE: CS) announced that it has raised $6.2 billion by issuing contingent convertible bonds. These bonds are also known as coco-bonds. The company said that it was under obligation to do so under the new Swiss capital rules.
* The bonds will meet about 50 percent of the contingent capital requirement.
* The bonds will be issued with The Olayan Group and Qatar Holding LLC.
The notes will not be paid up earlier than October 2013. After this period, it will be paid for either in cash or in exchange for Tier 1 capital notes issued in 2008. The bank was advised by the Swiss bank regulator Finma to issue coco bonds. Apart from Finma, Swiss National Bank is also urging the banks to issue such bonds in order to secure the Swiss economy from the dangers of collapse of major banks and financial institutes. Credit Suisse’s rival UBS AG has also been advised to issue such bonds.
Brady Dougan, chief executive officer of Credit Suisse, said, “We have worked in close cooperation with Finma, to ensure the buffer capital notes will qualify under the future Swiss capital rules as contingent capital.”
Credit Suisse is a financial services company. The finance company deals in various segments such as private banking, asset management and investment banking. Credit Suisse provides its services to a wide variety of clients ranging from individuals to corporations. It also serves government and endowments. It is operational in various countries worldwide. The company was formed in 1856. Credit Suisse is based out of Switzerland.
Credit Suisse stock is currently trading at $44.08. The stock is up 2.49 percent from its previous close. Credit Suisse stock opened at $44.12 and touched the high of $44.24. The stock’s lowest price in today’s session is $44.02. The company stock’s beta is 1.36.
The company stock has traded in the range of $36.36 and $54.24 during the past 52 weeks. The company’s market cap is $51.76 billion and its P/E ratio is 10.42.
Credit Suisse reported its total cash reserves at $586.218 billion for the year ending Dec 31, 2009. Its total assets were worth $997.753 billion for the same time period. Credit Suisse had valued its total liabilities at $961.461 billion. The company had reported its revenue at $50.003 billion. Credit Suisse’s net income for the year 2009 stood at $6.504 million.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.