The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Bank Rights issues: Bradford & Bingley makes three

Third rights issue in a row for UK bank is shunned.

The poor response of investors to Bradford & Bingley’s rights issue completes an ignominious hat trick of dismal capital-raisings from UK banks.

Investors took up just 28% of the £400 million-worth of new shares on offer, leaving the deal’s underwriters led by Citi and UBS and including a syndicate of the UK’s biggest banks stuck with the rest.

Although the take-ups for the recent rights issues of HBOS and Barclays were worse, at 8.3% and 19% respectively, underwriters were able to escape footing the bill thanks to a bounce in the share price of the former and the clever structure of the latter. B&B’s syndicate, however, has had to pledge to hold the stock, worth about £320 million, for almost three weeks before trying to offload it.

Lloyds TSB, HBOS, HSBC, Royal Bank of Scotland and Barclays have sub-underwritten about £120 million-worth of stock and four large UK fund managers – Standard Life, Legal & General, M&G and Insight – underwrote about £145 million of the issue. The deal’s managers, Citi and UBS, are accountable for the rest.

The four fund managers had previously backed a rival to TPG’s investment and were encouraged by UK regulator the Financial Services Authority to take its place.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree