ANZ Bank raises $2.2 billion through share purchase to support growth

ANZ Banking Group on Thursday said it will issue $2.2 billion of ordinary equity at $14.40 per share after accepting all applications for its share purchase plan (SPP) which closed on 2 July.

Chief executive Mike Smith said the SPP received interest from over 40 per cent of ANZ's retail shareholders and the bank decided to accept all applications that complied with the SPP terms and conditions.

The bank said in a statement that it would utilise the funds for pursuing organic growth opportunities and additions. The shares would be allotted on 13 July and trading would commence on 14 July.

The bank is also in negotiations with Royal Bank of Scotland (RBS) for acquisition of its Asia-based assets. The negotiations are progressing but not complete the bank said.

RBS is divesting retail and commercial operations in Hong Kong, Singapore, China, India, Malaysia, Indonesia, Taiwan, the United Arab Emirates, Kazakhstan and Pakistan. Also on sale are RBS' wholesale operations in a number of countries including Taiwan, Kzakhastan and Pakistan.

Analysts say that the expansion move in Asia has been undertaken as swelling bad loans at home shrink profits even as the bank cut its dividend for the first time after the 1991 recession. They say that Smith who was earlier with HSBC Holdings Plc's Asian division is aiming to ramp up the proportion of income from the continent to 20 per cent.