PILU
STATE SERENI
Lloyds Banking Group plans to will announce within days a 23 billion pound ($38 billion) fundraising plan to shore up its balance sheet and avoid a U.K. government debt insurance program, The Times of London reported.
Under the plan, the British bank will ask shareholders to buy 12 billion pounds worth of stock in a rights issue, while the government, which owns 43 percent of Lloyds, would inject another 5 billion pounds in the share sale, the report said.
The remaining 11 billion pounds would be raised through the issue of new loans to replace existing borrowings, according to The Times.
The rights issue will be underwritten by UBS, Bank of America Merrill Lynch, Citigroup , Goldman Sachs, JPMorgan Cazenove and HSBC Holdings, the newspaper said.
The fundraising comes as Lloyds seeks to escape taking part a costly government insurance scheme, that would give the British government a controlling 60 percent stake in the bank, the newspaper said.
Under the plan, the British bank will ask shareholders to buy 12 billion pounds worth of stock in a rights issue, while the government, which owns 43 percent of Lloyds, would inject another 5 billion pounds in the share sale, the report said.
The remaining 11 billion pounds would be raised through the issue of new loans to replace existing borrowings, according to The Times.
The rights issue will be underwritten by UBS, Bank of America Merrill Lynch, Citigroup , Goldman Sachs, JPMorgan Cazenove and HSBC Holdings, the newspaper said.
The fundraising comes as Lloyds seeks to escape taking part a costly government insurance scheme, that would give the British government a controlling 60 percent stake in the bank, the newspaper said.
