"Binsalman, Potential 650 Billion KRW Investment in Credit Suisse IB Division"

Crown Prince Mohammed bin Salman of Saudi Arabia
[Photo by Reuters]

[Asia Economy Reporter Jeong Hyunjin] It has been suggested that Crown Prince Mohammed bin Salman, the de facto ruler of Saudi Arabia, may invest nearly 650 billion KRW in Credit Suisse (CS)'s corporate finance and mergers & acquisitions (M&A) divisions, which have recently undergone business restructuring due to concerns over financial stability.

The Wall Street Journal (WSJ) reported on the 4th (local time), citing multiple sources, that among the investors planning to invest $1 billion in Credit Suisse's new investment bank, 'CS First Boston,' are Crown Prince bin Salman and U.S. private equity firms.

Among them, the investment amount under consideration by Crown Prince bin Salman is $500 million (approximately 647.5 billion KRW). WSJ stated that it is unclear whether Crown Prince bin Salman's investment will be made through the Saudi National Bank, which currently holds a 9.9% stake in Credit Suisse and is the largest shareholder, or through other investment means.

Earlier, Axel Lehmann, Chairman of Credit Suisse, announced at a conference on the 1st that an anonymous investor had committed to a $500 million investment.

WSJ reported that Crown Prince bin Salman's investment consideration appears to be linked to the appointment of Michael Klein as CEO of CS First Boston. Klein had an advisory role during the 2019 IPO of Saudi state-owned Aramco.

In addition to bin Salman, U.S. investors such as Atlas Merchant Capital, led by former Barclays CEO Bob Diamond, are also expected to participate in the investment.