Credit Suisse will buy back as much as 3 billion Swiss francs ($3 billion) in debt, the troubled Swiss bank said on Friday, to give investors a show of strength after a turbulent week.

The move eased the Swiss bank’s debt load and sought to boost confidence after its shares and bonds fell sharply.
Unsubstantiated rumours about its future being questioned have circulated on social media amid fears it may need to raise billions of francs in fresh capital.

Credit Suisse, one of Europe’s largest banks, had to raise capital, halt share buybacks, cut dividends and restructure management after losing more than $5 billion in March 2021 from the collapse of investment firm Archegos, when it also had to suspend business with clients Service funds linked to failed financier Greenhill.

The bank said the debt repurchase would “enable us to take advantage of market conditions to repurchase debt at attractive prices”. Its shares rose 1.5% in pre-market trading on six Swiss exchanges, signalling investor relief.

Over the weekend, bank executives assured large clients, counterparties and investors of their liquidity and capital. CEO Ulrich Koerner also told employees in a memo that it had sufficient capital and liquidity.

Earlier this week, the Swiss National Bank, which oversees the financial stability of banks vital to the Swiss system, took the unusual step of saying it was monitoring the situation at Credit Suisse.

The failure of banks and banking groups is considered systemically important if it causes significant damage to the Swiss economy and financial system.

Credit Suisse said it made a cash offer of €1 billion for €8 or pound-sterling-denominated senior debt securities and repurchased 12 dollar-denominated senior debt securities for up to $2 billion. The bank will unveil its new business strategy on October 27, when it will report third-quarter results.

Rating agency Moody’s Investors Service expects Credit Suisse’s losses to widen to $3 billion by the end of the year, possibly keeping its core capital below a key level of 13%, Moody’s chief analyst told Reuters on Thursday.

The bank has been trying to sell possible assets and operations to return to profitability. It also said it was looking to sell its famous Savoy hotel in the heart of Switzerland’s financial district, a deal that local media said could raise about 400 million francs.