HBOS Plans Rights Issue
April 29th, 2008 by 
Guy
The HBOS group has confirmed plans to launch a £4bn rights issue in an attempt to free up its capital.
The UK’s largest mortgage lender says shareholders will have the chance of purchasing two new shares for every five existing shares priced at 275p.The bank says it has taken a write-down of £970m against assets held in its trading book in the past year.
The chief executive at HBOS, says: “We are planning for a more challenging environment ahead and the proceeds of the rights issue should ensure that we benefit from strong ratios even if the macro-economic environment deteriorates further.”
Despite the present market, HBOS reports “what it calls a satisfactory trading performance. ”
The statement from HBOS follows the move from RBS last week, which also sought to raise cash from its shareholders to the tune of £12bn
Posted in Mortgage news | 