Credit Suisse is offering a debt package worth $40.2bn to fund a competing offer for TXU, the Texas-based energy group which this week agreed to be bought by Kohlberg Kravis Roberts and Texas Pacific Group, two private equity groups, in the largest leveraged buy-out deal.

The Swiss bank’s willingness to arrange the massive financing will eliminate a key financial obstacle to several private equity groups, including Blackstone and Carlyle, that are considering a rival offer.