Bloomberg

(Bloomberg) -- Credit Suisse Group AG investors agreed to buy 99.2 percent of the shares on sale in a rights offering, providing 4.1 billion Swiss francs ($4.3 billion) for Chief Executive Officer Tidjane Thiam’s turnaround plan.

Credit Suisse plans to sell the unsubscribed shares in the market, the Zurich-based bank said in a statement on Wednesday after markets closed. The shares, offered at 10.80 francs, are expected to begin trading on Thursday.

Funds raised in the second rights issue since Thiam took over in mid-2015 will be used to complete his overhaul and expand in wealth management, he told shareholders last month. Credit Suisse in April ditched plans to list part of its lucrative Swiss bank under pressure from investors who preferred a straight capital increase.

The bank is in the second year of reshaping its business model to expand in wealth management, which has steadier revenues and requires less capital than volatile trading operations. Thiam has scaled back its global markets unit, the business that made Credit Suisse one of the biggest names on Wall Street but which has become a drain for capital since the 2008 financial crisis due to tougher regulations.

The fresh funding will increase Credit Suisse’s common equity Tier 1 capital to 13.4 percent of risk-weighted assets. The measure of financial strength was 11.7 percent at the end of the first quarter.

(Corrects timing of share trading in second paragraph.)

To contact the reporter on this story: Jan-Henrik Förster in Zurich at jforster20@bloomberg.net.

To contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net, Cindy Roberts, Keith Campbell

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