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Investors back stock offer by Standard
18 Dec 2008Asia-focused banking group Standard Chartered says it has 97% acceptance by shareholders for a £1.8 billion stock offer to shore up its balance sheet.
Investors will buy 455.7 million shares in the rights offer at 390p each, 49% lower than yesterday's closing price.
Chief executive Peter Sands said the capital raised will provide a buffer against the financial crisis, which has forced Royal Bank of Scotland, HBOS and Lloyds TSB to take Government bailout funds.
The sale will lift the bank's capital ratio to 7.4% from 6.1%.
Standard Chartered avoided exposure to the subprime mortgage meltdown but has been caught by worsening conditions in emerging markets.
The dual-listed bank's Hong Kong-traded shares declined 2.1% to HK$92 (£7.67) by lunchtime.
Last month Standard Chartered slashed its growth forecast by more than half in some of its biggest markets.
