Credit Suisse raises $2.4 billion for its reorganization

Swiss credit celebrated a “milestone” in its recovery plan on Thursday after raising 2.24 billion Swiss francs ($2.39 billion) as part of a 4 billion franc cash request from shareholders.

98.4% of the bank’s shareholders exercised their subscription rights, which was a boost for the managers in charge of turning the Swiss bank’s course around after the biggest crisis in its 166-year history.

The successful completion of the capital increase is a key milestone for the new Credit Suisse,” Chief Executive Ulrich Koerner said in a statement.

“It will allow us to continue supporting our strategic priorities from a position of capital strength and create a bank that is simpler, more stable and more focused on the needs of clients, generating value for shareholders,” he added.

Credit Suisse had already raised 1.8 billion francs by placing shares among a group of institutional investors led by Saudi National Bank.

The 4 billion franc package is intended to finance a turnaround and bolster Credit Suisse in its efforts to overcome scandals and heavy losses that sparked speculation about its future and large withdrawals of client funds.

Credit Suisse has been hit by setbacks, including a $5.5bn loss at US investment firm Archegos and had to freeze $10bn worth of funds linked to insolvent British financier Greensill.