Qatar becomes Credit Suisse's second-largest shareholder after pumping up stakes: reports

The Qatari sovereign wealth fund began investing in Credit Suisse during the 2007-2008 global financial crisis.

Qatar Investment Authority (QIA) became Credit Suisse’s second-largest shareholder after doubling its stakes, reaching just below 7% as the Swiss entity seeks to garner more investors, The Financial Times (FT) reported on Monday.

Citing filings with the Securities and Exchange Commission, the report stated that the Qatari sovereign wealth fund jumped up its rank of investors.

The Saudi National Bank (SNB) is currently Credit Suisse’s largest stakeholder with a 10% stake.

The $450 billion Qatari wealth fund’s doubling of shares came as US shareholders sold down their stakes, including Harris Associates, which went from having 10% to less than 5%.

According to the FT, the Chicago-based entity was Credit Suisse’s largest shareholder “months ago” before dropping the number of its shares.

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Middle Eastern investors now dominate more than a fifth of the investment banking company’s stock. The regional entities include the QIA, SNB and Saudi’s Olayan, which owns 3%.

QIA began investing in Credit Suisse during the 2007-2008 global financial crisis.

The latest development in the Qatari wealth fund’s investment in Credit Suisse came as reports last year portrayed a rather negative market outlook for the Swiss company.

According to Forbes, Credit Suisse’s shares hit a record low last year, when its stock fell by 5% on the New York Stock Exchange, reaching $3.41. Its Dow Jones US Banks Index also witnessed a 14% fall.

Credit Suisse’s market value exceeded $78 billion in 2009 and became worth less than $9 billion, Forbes noted.

A previous FT report, Credit Suisse sought $4.04 billion from investors under its restructuring programme. The Swiss entity named 20 banks at the time, including QIA, to complete its funding.

Separately, Bloomberg reported last year that Credit Suisse planned on issuing 1.35 billion new shares, representing a more-than-half increase in comparison to outstanding ones it had of 2.65 billion by the end of September.