Credit Suisse says to raise capital through new placement

FILE PHOTO: The logo of Swiss bank Credit Suisse is seen at its headquarters in Zurich, Switzerland March 24, 2021. REUTERS/Arnd Wiegmann

ZURICH (Reuters) - Credit Suisse said it was raising capital on Thursday by issuing notes convertible into 203 million shares.

"Our capital position remained solid with a CET1 ratio of 12.2% and a CET1 leverage ratio of 3.8% as per the end of 1Q21," the bank said in a statement. "However, with the Offering, we expect to further strengthen our capital position in line with our intention to achieve a CET1 ratio of approximately 13% and a minimum CET1 leverage ratio of 4%."

Credit Suisse has emerged as the bank hardest-hit from exposure to U.S. investment firm Archegos, which collapsed when it could not meet margin calls. Analysts at JPMorgan said Credit Suisse may face another loss of around $400 million this quarter from unwinding Archegos-linked stocks - an estimate which Credit Suisse has declined to comment on.

That, plus the demise of another client, Greensill Capital, has triggered internal and external probes and the ousting of a swathe of executives.

(Reporting by Brenna Hughes Neghaiwi; Editing by Michael Shields)

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