Daily Banking Industry News
Thursday 09th of April 2009

Banking Sectors:

By company:

By organisation:

Also see:

April 6, 2009

HSBC rights issue a success

by Gill Montia

Story link: HSBC rights issue a success

HSBC has reported that its £12.5 billion rights issue has been a success.

The take-up from investors stands at 96.6%, or 4.89 billion shares.

The new stock was priced at 254p a share and therefore heavily discounted on Friday’s closing price of 434p.

The bank, which is Europe’s biggest by market value, announced the fundraising in March when it reported a 62% fall in profit for 2008, to £6.5 billion.

Chairman Stephen Green said the additional capital would enable the group to deal with the impact of an uncertain economic climate although HSBC may, in addition, seek out some of the assets that are being shed by failing financial institutions worldwide.

According to a report in The Times, the bank intends to elevate its Middle East operations from 10% of its global business to 15% this year.

The fundraising, which has brought in £12 billion so far, holds the record for the largest rights issue in UK corporate history and will leave the bank with a Tier one capital ratio of 8.5%.

 

Add to Bookmarks:

ADD TO NETSCAPE     ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL


Related stories to: HSBC rights issue a success

Major shareholders line up behind B&B rights issue  ...

High Street five support B&B fundraising  ...

Barclays refuse to rule out rights issue  ...

HSBC profit down 62%; £12.5bn rights issue announced  ...

HBOS share price continues to endanger rights issue  ...

No Comments »

No comments yet.

Leave a comment


Previous: « Debt Relief Orders have arrived
Next: Guaranty Trust Bank enjoys awards success »

Visited 159 times, 7 so far today


Savings & Investment News


Borrowing & Lending News



Financial Reports News