Saudi National Bank (SNB), the Gulf state’s largest lender, said Thursday that it will increase its paid-up capital by $4.1 billion to strengthen the lender’s financial position “which contributes to achieving its strategic objectives.”
SNB, which owns a nearly 10% stake in Credit Suisse, said in a bourse filing that it will boost its capital by about a third to $16 billion (SAR 60 billion) through a bonus share offering from its retained earnings, it said in a statement on Thursday. The bank’s board of directors recommended one share for every three shares held.
Last September, SNB issued $880 million (SAR 3.30 billion) in a riyal-denominated Sukuk after the bank had raised $750 million in debut ‘sustainable’ Islamic bonds earlier in the year.
Founded from a merger in 2021, SNB was an anchor investor in Credit Suisse’s capital raise last October and currently holds a 9.9% stake in the bank—making it the top shareholder in the Swiss lender.
The state-owned bank is reportedly considering investing as much as $500 million into Credit Suisse’s planned investment bank spin-out.
