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UPDATE 1-Credit Suisse offers juicy premium on new bond

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds comparable bond pricing in paragraph 4, details on investor demand in paragraph 5) LONDON, Feb 15 (Reuters) - Credit Suisse will pay a hefty interest on a new bond it sold on Wednesday, in the Swiss bank's first market test since its results almost a week ago warned of more losses.


The bank raised 500 million euros ($533.60 million) from the sale of a new senior unsecured bond, a memo seen by Reuters showed. The bond, which pays a coupon of 5.5%, priced for a yield of 5.606%, the memo said. The coupon on the new bond is more than double the coupon Credit Suisse paid on comparable bonds it sold previously. In May, the bank sold a 1 billion euro bond at a coupon of 2.125%, a separate memo seen by Reuters showed. Final investor demand for the new bond was at around 600 million euros, the first memo said, down from more than 1 billion euros earlier on Wednesday.


The new bond, which was sold by the operating company, will mature in August 2026 and is part of the bank's euro medium term note (EMTN) programme launched in May 2022. The Swiss lender last week reported its worst annual loss since the 2008 global financial crisis.
($1 = 0.9370 euros) (Reporting by Chiara Elisei; editing by Dhara Ranasinghe and Jane Merriman)

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