Credit Suisse tapping 20 banks for capital increase

New approach: People walking into a Credit Suisse branch in Zurich. The battling Swiss bank is inviting a number of financial institutions to join its rights issue as it seeks to implement another multi-year restructuring programme. — Reuters

LONDON: Credit Suisse Group AG, the struggling Swiss bank, is inviting at least 20 banks to join the syndicate for its US$4bil (RM18.9bil) rights issue that should help the lender finance another multi-year restructuring programme, according to people familiar with the plan.

The bank’s new chief financial officer Dixit Joshi held a due diligence call for the capital increase, dubbed as “Project Ghana”, with a financial institution group and equity capital markets bankers last Friday after Credit Suisse’s announcement of a new turnaround plan the day before, the people said.