Print friendly version 14 May 2008

B&B to launch £300m rights issue

Bradford & Bingley has become the latest UK bank to announce plans for a rights issue to improve its capital position.

The bank hopes to raise £300m from the rights issue by offering 16 new ordinary shares at a price of 82p per share for every 25 ordinary shares held by existing investors.

Steve Cranshaw, group chief executive at B&B, said: “The rights issue we have announced today will strengthen our financial standing, reinforcing our position as one of the better capitalised banks in the UK. The improved financial strength will ensure we are even better placed to pursue our strategy of providing high quality savings and mortgage products in a competitive market.”

According to Richard Hunter, head of UK equities at stockbroker Hargreaves Lansdown, said: “The B&B capital ratio was in reasonable health even before this announcement, so the company is playing safe by shoring up the balance sheet further. It may also allow the company an opportunity to cherry pick lending in its biggest market, buy to let, on a selective basis given the currently difficult economic environment.”

STAY UP TO DATE: Subscribe to email alerts Subscribe to RSS