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ANZ 'doubles the size of fund raising'

ANZ 'doubles the size of fund raising'

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Date Published : Thursday, September 04, 2008

Australia and New Zealand Bank (ANZ) is to double the size of its planned capital increase, it has been reported.

The bank's decision to augment its balance sheet by a further $1 billion comes as a result of it looking to increase its capital reserves in the current precipitous climate, according to the Age.

ANZ's decision follows similar moves by Macquarie and Westpac in recent months but the capital raisings are far less than the billions of dollars that the US and UK banks have sought to shore up their balance sheets, the newspaper suggested.

The bank will offer convertible preference shares at $1 apiece to raise $1 billion.

Reluctant to place more pressure on its share price, the bank has elected to offer a hybrid of debt and equity, the Age claimed.

ANZ had previously been looking for $500 million but saw its profit for the half year ended March 31st fall seven per cent from $2.1 billion to $1.96 billion.

Hemscott reported that ANZ is the fourth Australian bank to make a similar move this year and may not be the last.

ANZ provides a range of general banking services as well as mortgage and instalment lending and numerous other financial services across Australia.

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