Lloyds Banking Group has launched a record-breaking £13.5bn rights issue at a near-40% discount as part of a massive fund raising to strengthen its balance sheet, reports The Telegraph.
The bank has priced Britain's biggest ever cash call at 37p a share, a 38.7% discount to the theoretical ex-rights price based on last night's closing price of 91.47p. Lloyds is offering shareholders 1.34 new shares for each ordinary share held. The 36.5bn new shares being issued represent 57.3% of the enlarged share capital. The rights issue is part of a total £22.5bn capital raising undertaken by the bank that was brought to its knees by the acquisition of HBOS. Raising the fresh capital will enable Lloyds to escape the pricey government-backed insurance scheme for bad debts - kn...
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