Standard Chartered capital raising (and more) crossing the wires

via Reuters

  • Says to raise about $5.1 billion in new capital
  • To restructure some businesses that collectively use more than $100bln of risk weighted assets
  • To take $3 billion in restructuring charges by the end of 2016
  • Increases gross cost reduction target to $2.9 billion in 2015-2018
  • Says to invest more than $1 bln into retail client systems, private banking, upgrading africa franchise and renminbi services
  • Targeting increased cet1 capital ratio of 12-13 pct and medium term roe of 10 pct
  • To issue shares for 465 pence per share in rights issue
  • No final dividend to be paid for current financial year ending December 2015
  • Says British regulator PRA is aware of capital raising plans and has raised no objections
  • Says rights issue ratio of 2 new ordinary shares for every 7 existing shares

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Stan Chart HK shares down after the announcments