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Saudi National Bank announces its participation in the capital raising exercise by, and its intention to explore strategic partnerships with, Credit Suisse Group AG

Thursday, 27 October, 2022

​Riyadh, October [27], 2022 – 

Saudi National Bank (SNB) (1180.SR) announces that it has committed to participate in the capital raising exercise (the Capital Raise) announced by Credit Suisse Group AG (CSGN.SW) (“Credit Suisse”) today to assist with the future growth and transformation of their business. Following the Capital Raise, Saudi National Bank also intends to explore certain strategic partnerships with Credit Suisse in complementary geographies and businesses. ​

Pursuant to the Capital Raise, Saudi National Bank has committed to invest up to CHF1.5 billion (equivalent to SAR 5.7 billion) in Credit Suisse to achieve a shareholding of up to 9.9% by:

  • participating in the private placement of non-pre-emptive shares by Credit Suisse (the “Private Placement”); and

  • following completion of the Private Placement and in its capacity as shareholder of Credit Suisse, participating in the subsequent rights offering by Credit Suisse (the “Rights Offering”) by taking up all of its statutory preferential subscription rights in the Rights Offering. ​

The Capital Raise is subject to customary terms and conditions, including the approval of the Capital Raise by shareholders of Credit Suisse at its extraordinary general meeting. 

Saudi National Bank may also participate in a future capital raising exercise by Credit Suisse to help support the establishment of an independent investment bank focused on advisory and capital markets activities. In addition, Saudi National Bank and Credit Suisse intend to, following the Capital Raise, cooperate and develop strategic partnerships in selected business areas. Such cooperation and partnerships will be subject to applicable regulatory and internal approvals and clearances as well as binding agreements being entered into. 

The purpose of this investment and strategic partnership for Saudi National Bank is to allow it to develop its businesses in Asset Management, Wealth Management and Investment Banking in Saudi Arabia and the region and to provide its customers with best in class services, products and capabilities to meet their financial needs. 

Ammar Alkhudairy, Chairman of Saudi National Bank, said, “Today’s announcement demonstrates that our ambitions, as the leading bank in Saudi Arabia, are to take our capabilities to a global standard and reach, with the partnership with Credit Suisse. The Kingdom of Saudi Arabia is one of the fastest growing G20 countries and this partnership will bring significant tangible benefits to our clients in key areas such as Asset Management, Wealth Management, and Investment Banking. I am confident that the initiatives we have announced today will enhance both companies’ global presence, enable us to better meet the needs of our respective clients and generate value to both sets of shareholders.”

“We welcome the support of the Saudi National Bank as a vote of confidence in our franchise and a commitment to the new Credit Suisse,” said Axel P. Lehmann, Chairman of Credit Suisse Group. “This investment establishes a new partnership that will enable our strategic transformation to become a stronger and more efficient bank, catalyze the SNB’s ambition to diversify and globalize, and provides for future collaboration between our institutions to the benefit of clients and stakeholders in key markets.” 

Ulrich Körner, Chief Executive Officer of Credit Suisse Group, added, “Credit Suisse's commitment to the Middle East is longstanding. The region is core to our franchise and builds on our presence, first established in 1967. Through this partnership, we further expand our ability to serve clients in the region and across the globe.” 

About The Saudi National Bank (SNB): SNB is the largest bank in the Kingdom of Saudi Arabia and one of the largest banks in the Middle East with total assets of c. SAR 964 Bn (US$ 257 Bn) and a market capitalization of c. SAR 283Bn (US$ 75 Bn) (3Q 2022). SNB has a well-diversified business model with scale and market leading operations in Retail, Wholesale, and Capital Markets. SNB has c.11 million customers and over 16,000 employees across 8 countries. SNB’s balance sheet strength is underpinned by its solid capital position with CAR (Pillar 1) ratio of 18.4% (2Q 2022) with robust credit ratings (S&P: A- // Fitch: A- // Moody’s: A1 // Capital Intelligence: A+). 

SNB plays a vital role in supporting the economic transformation plan in Saudi Arabia by transforming the local banking sector and catalyzing the delivery of Saudi Arabia’s Vision 2030. Its strategy is closely aligned with the Vision’s programs. SNB also leverages its position as the largest institutional and specialized financier in the Kingdom to support the Kingdom’s landmark deals and mega projects. SNB’s vision is to be a premier financial and banking service provider locally and regionally. For more information, please visit: