ANZ raising $3.2bn to fund Asian purchase

ANZ bank has announced details of a $A2.5 billion ($3.2bn) capital raising, with the money partly used to fund a possible purchase of some of the Asian assets of the Royal Bank of Scotland.

Its fully underwritten institutional share placement will "create greater financial flexibility to pursue strategic and organic growth opportunities and to further strengthen the Group's capital position," said the bank in an announcement made this morning.

The institutional share placement will be made at an offer price of $A14.40 per ordinary share.

ANZ will also offer retail shareholders the opportunity to participate in a Share Purchase Plan, which will provide eligible holders of ANZ ordinary shares with the opportunity to subscribe for up to $A15,000 worth of ANZ ordinary shares.

Market conditions in New Zealand remain challenging and the Group anticipates some further margin decline in the second half.

"ANZ's long term aspiration is to become a super regional bank focused on Australia, New Zealand and Asia Pacific. This involves pursuing growth opportunities in Asia Pacific, growing its presence
in Australia and maintaining its leading position in New Zealand," it said.

The bank said it is one of a number of parties participating in a competitive sale process being conducted by Royal Bank of Scotland in relation to "certain businesses in Asia."

As part of this process, it had recently submitted a non-binding proposal to RBS "for selected businesses. "


- NZ HERALD STAFF