Bendigo and Adelaide Bank Ltd
(ASX:BEN) has announced a $300 million capital raising to help strengthen the bank’s capital base, after posting a big drop in full year earnings.
The bank says it plans to raise $173 million via an entitlement offer to retail shareholders and eligible institutional shareholders, and $127 million through a placement of shares to selected sophisticated and institutional investors.
The offer price is $6.75 a share, a 17 per cent discount to the banks last traded price.
The company also posted a 57.7 per cent fall in net profit for the full year to $83.8 million this morning, down from $189.1 million the year before.
Bendigo and Adelaide Bank says earnings were hurt by a slowing economy and global recession, an unprecedented drop in official cash rates and increased funding costs.
Bendigo and Adelaide Bank’s 2008 net profit was its best in five years.
