The Qatar Investment Authority (QIA) has increased its holding in Credit Suisse to 6%, signaling its long-term support to the troubled bank, according to Reuters.
According to a regulatory filing, QIA subscribed to two convertible notes, which will be converted into shares later this year, resulting in a larger shareholding than previously expected.
Qatar’s $300 billion sovereign wealth fund is Credit Suisse’s largest stakeholder, but disclosure in late June revealed that its holding had dropped below 5%, raising doubts about the fund’s commitment to the investment.
After losing more than $5 billion in the rush to unwind trades by family office Archegos and halt funds related to Greensill, Credit Suisse’s top management is under pressure to come up with an overhaul plan.
The Qatari fund was among the investors who subscribed to Credit Suisse’s capital raise in April, when the Swiss lender issued obligatory convertible notes, according to a new filing with the US Securities and Exchange Commission.
According to Stock exchange data, QIA’s ownership in the company still remains at 4.84%, but when the convertibles are included, the share jumps to 6.01%.
QIA made its first investment in Credit Suisse in 2008, at the height of the financial crisis, and has since increased its holding to over 5%.
Credit Suisse shares were down 0.9 percent in late morning trade, bringing the year-to-date loss to 15.5%.