Credit Suisse’s Investment Bank Spinoff Attracts Saudi Crown Prince

Saudi Arabia’s Crown Prince Mohammed bin Salman is preparing to invest in Credit Suisse Group AG’s investment bank, the Wall Street Journal reported.

Prince Mohammed may invest around $500 million in the lender’s CS First Boston spinout, the newspaper said, citing people with knowledge of the matter. Other investors could include former Barclays Plc chief executive Bob Diamond’s Atlas Merchant Capital, according to the report.

Credit Suisse Chairman Axel Lehmann said last week that the bank has received several further commitments from investors for its planned First Boston investment bank spinout.

Prince Mohammed has been encouraging Saudi Arabia’s largest firms to expand globally, raise the country’s profile as a serious investor and diversify its economy. The kingdom is already backing Credit Suisse, with Saudi National Bank taking a 9.9% stake in the troubled Swiss lender.