Credit Suisse has ditched its plans for a partial sale of its Swiss business, instead announcing a SFr4bn (£3.1bn) capital raise.
This morning, during its results announcement, Credit Suisse said it will hold an extraordinary general meeting on 18 May for shareholders to vote to approve "a share capital increase through a rights offering (issuing of new shares to existing shareholders of Credit Suisse Group, if permitted under applicable local laws)".
Current shareholders will be offered the new stock at a discount and if they don't take it up, Deutsche Bank and Morgan Stanley are on board as underwriters.
Details on the bank's highly anticipated capital plans had not been expected as they weren't on the agenda for Credit Suisse's shareholder meeting on Friday.
But today, the bank said:
Under the terms of this rights offering, Credit Suisse Group AG intends to issue 379,981,340 new registered shares with a par value of CHF 0.04 each, which are firmly underwritten by a banking syndicate.
The pre-emptive subscription rights are expected to be traded from 23 May until 2 June.
It has also unveiled a proposal to swap to an all-cash dividend in the future. This will mean that dividends paid in new shares won't dilute investors.
Switzerland's second largest bank beat expectations in its first quarter earnings, bolstered by a solid showing from its wealth management unit.
It said the first quarter had provided "further confirmation" that it was delivering "profitable and complaint growth" and had "generated positive momentum across our businesses".
The capital increase, will, Credit Suisse hopes, enable the bank to continue to invest in profitable growth opportunities "where we generate attractive returns", as well as strengthen balance sheet resilience for its clients and other stakeholders. It will also help with the costs for its ongoing restructuring plans.