May 27, 2009 - 8:46am
It was announced that Australia and New Zealand Banking Group was raising $2.5 billion ($1.95 billion) partially to fund a possible purchase of some of Royal Bank of Scotland's Asian assets.
ANZ stated it had made a non-binding bid for the assets. There were some other institutions such as HSBC Holdings and Standard Chartered who have also expressed interest in buying the assets put up for sale with the aim of retreating to home markets and exit or shrink in up to 36 of the countries where RBS operates.
Moreover, it was disclosed that ANZ was raising fresh equity through an institutional placement of shares at A$14.40 each, a discount of 7.5 percent comparing to stock's closing price of A$15.57 on Tuesday. The organization had already raised A$18 billion in term funding for 2008/2009 as of last month.
Part of the raised money will be directed at bolstering its balance sheet.
It should also be reminded that in accordance with the last month reports, ANZ has observed a 43 percent decrease in half-year cash profit, which is higher than it was forecasted. Mike Smith Chief Executive of ANZ said, the bank's full-year provisions were expected to exceed the A$2.5 billion forecast made earlier.
ANZ stated it had made a non-binding bid for the assets. There were some other institutions such as HSBC Holdings and Standard Chartered who have also expressed interest in buying the assets put up for sale with the aim of retreating to home markets and exit or shrink in up to 36 of the countries where RBS operates.
Moreover, it was disclosed that ANZ was raising fresh equity through an institutional placement of shares at A$14.40 each, a discount of 7.5 percent comparing to stock's closing price of A$15.57 on Tuesday. The organization had already raised A$18 billion in term funding for 2008/2009 as of last month.
Part of the raised money will be directed at bolstering its balance sheet.
It should also be reminded that in accordance with the last month reports, ANZ has observed a 43 percent decrease in half-year cash profit, which is higher than it was forecasted. Mike Smith Chief Executive of ANZ said, the bank's full-year provisions were expected to exceed the A$2.5 billion forecast made earlier.