Credit Suisse in Innovative $4 Billion “Bail In” Debt Offering

March 26, 2015

Cleary Gottlieb represented Credit Suisse Group in an innovative $4 billion “bail in” debt offering by Credit Suisse Group Funding (Guernsey) Limited. The securities are expected to qualify as “Total Loss Absorbing Capital” under the rules being developed by the Financial Stability Board in consultation with the Basel Committee on Banking Supervision for application to global systemically important banks such as Credit Suisse. The securities, which include an acknowledgement and consent by the holders to the Swiss regulator’s ability to exercise its resolution powers (including a potential write-down of principal and interest), have been issued by a finance subsidiary and are guaranteed by CSG, the group holding company. This is the first issuance of “bail in” securities by any Swiss bank.

The notes were sold in a Rule 144A / Regulation S offering with registration rights. The offering launched and priced on March 23 and closed on March 26.