(Bloomberg) -- Credit Suisse Group AG’s Saudi backer is bullish on its investment in the struggling Swiss lender, in part because it’s snapping up an almost 10% stake at a lower price than the shares have ever closed.

Saudi National Bank “likes” Credit Suisse’s new leadership and their resolve to execute on its turnaround plan, though any additional equity for the moment is “out of the question,” Chairman Ammar Al Khudairy said in an interview with Bloomberg TV. 

“We’re optimistic that if they do deliver on the turnaround plan, this bank will yield some very interesting accretion on a standalone basis,” he said. “We like where we are at 9.9%. At this stage we’re not interested in moving from a tactical shareholder into a different category in terms of our relationship with Credit Suisse.”

Saudi National Bank, which is 37% owned by the kingdom’s sovereign wealth fund, is set to become one of Credit Suisse’s biggest shareholders in its first major international acquisition. 

The Saudi lender is set to own a stake of 9.9% if it participates in the rights offering, after agreeing to buy shares for about 1.17 billion Swiss francs ($1.17 billion) in the first step of Credit Suisse’s two-pronged capital raising, a placement to qualified investors. Saudi National Bank had committed to invest as much as 1.5 billion francs in total, though the terms disclosed now indicate it will only spend about 1.4 billion francs.

It will acquire the initial stake at a price of 3.82 francs per share and will have the option to acquire more shares at 2.52 francs, according to the terms Credit Suisse disclosed Monday. Credit Suisse rose 4.3% to 4.09 francs per share at 3:56 p.m. in Zurich, but is still trading near the record-low closing price of 3.83 francs it reached on Sept. 29.

Serious Investor 

Sauid National Bank’s investment also sets in motion Crown Prince Mohammed Bin Salman’s plan to encourage Saudi Arabia’s largest firms to expand globally, raise the kingdom’s profile as a serious investor and diversify its economy. 

The Saudi lender, created through a $15 billion merger less than a year ago, will use the investment to expand its wealth management and investment banking businesses inside the kingdom and globally, and will look at how the two firms can develop joint initiatives in the kingdom, Al Khudairy said. 

“If we look at it on a standalone basis and as an investment we sit on for 3 to 5 years, we believe there is excellent return potential from it,” he said. “Beyond that, if we are able to create some opportunities that are relevant to our market, that’s won the cake.” 

Read more about SNB’s investment in Credit Suisse

The bank last week indicated it may invest in any future capital raising by Credit Suisse. The lender will finance the acquisition from its own cash balance, Al Khudairy said, and may look at other overseas opportunities.

“We certainly are open to any deals if they’re opportunistic and if they make economic sense to us, but if you think we’re going to go out and buy a European bank or something like that, that’s not on the cards right now,” he said. 

(Updates with details on investment starting in first paragraph.)

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