Standard Chartered Bank To Raise £3.3bn
Standard Chartered bank has announced to raise £3.3bn by selling rights issue.This issue will be driven under rules(Basel III rule) being agreed last month on how much capital banks should hold in reserve.
Investors are being offered 1 new share at £12.80 for every 8 existing shares they hold. This is a 33pc discount to the closing price of the shares on Tuesday.
Bank is looking forward to its new developing markets in Asia, Africa and the Middle East for which it need more funds.
“The rights issue will enable Standard Chartered to continue… focusing on its organic growth strategy,” the bank said.
The board estimates that the impact of the rights issue will be to increase the forecast Core Tier 1 capital ratio by around 2 percentage points, adding to the bank’s $30bn of shareholder equity. The bank is worth £40bn.
basel iii
http://blogs.reuters.com/felix-salmon/2010/10/01/grading-basel-iii/