Standard Chartered completes 3.3 billion pound rights issue

Standard Chartered completes 3.3 billion pound rights issue

HONG KONG/LONDON (Reuters) – Standard Chartered has completed a share sale to raise 3.3 billion pounds, bolstering its balance sheet under a plan to restore profitability after three years of falling profits & strategic mistakes.

The Asia-focused lender launched the rights issue last month & the offer was supported by its biggest shareholders including Singapore state investor Temasek Holdings [TEM.UL].

Standard Chartered said it received acceptances for 96.8 percent of the new stock offered to investors & the remaining 23.4 million shares were sold in the market at 505 pence apiece by the banks who handled the deal.

Standard Chartered shares in London were down 1.8 percent at 500p by 1351 GMT.

"We will continue to focus on executing our strategy & restore our bank to sustainable, profitable growth, & deliver satisfactory returns for our shareholders," Group CEO Bill Winters said in a statement.

The rights issue was fully underwritten by banks. JPMorgan & Bank of America Merrill Lynch were joint global coordinators & joint bookrunners on the offer.

Under Winters, a former JPMorgan investment bank boss who took the helm in June, the bank last month announced the cash call as part of a plan moreover including a 17 percent cut in its global workforce & the sale or restructuring of $100 billion of loans.

(Reporting by Denny Thomas & Steve Slater; Editing by Kim Coghill & David Holmes)

Source: “Reuters”