Bank of Queensland sees opportunity for growth

SYDNEY - Bank of Queensland plans to raise A$340 million in new equity as it positions itself to take advantage of emerging growth opportunities.

The fully underwritten offer of new shares includes a A$143 million placement to institutions and its largest shareholder BRED Banque Populaire.

It also includes a A$197 million one-for-nine non-renounceable entitlement offer, with A$85 million set aside for institutions and A$112 million for retail investors.

The placement and entitlement offers will be conducted at the same price of A$10 per share.

After the raising, Banque Populaire will own about 12.5 per cent of the regional bank.

However, Linfox Share Investment will sell-down eight million shares in a fully underwritten secondary offering also at A$10 per share, to be run in parallel to the main offer.

Following the sell-down, Linfox will own approximately 1.8 million shares, representing about 0.8 per cent of the bank.

managing director and chief executive David Liddy said proceeds from the equity raising will be deployed to help the bank's owner-manager branch network to grow.

"We will target continued 'system outperformance', with a focus on lower risk prime residential property, well secured small-to-medium enterprise lending and equipment finance," he added.

After the offer, the bank will have a pro-forma Tier 1 capital ratio of 9.9 per cent, one of the strongest of Australia's banks.

- AAP