Capital Raising

SINGAPORE, November 24, 2008 (AFP) – British-based Standard Chartered bank said Monday it plans to raise 1.78 billion pounds (2.66 billion US dollars) in a rights issue to better position itself during the global financial turmoil.

Standard Chartered, which is listed in Hong Kong and London, says more than 90 percent of its operating income and profits come from Asia, Africa and the Middle East. The bank said its largest shareholder, Singapore sovereign wealth fund Temasek Holdings, intends to take up the offer and is also participating in underwriting the issue.

“The rights issue addresses the shift in investor expectations toward higher capital levels, reinforces the strength of the balance sheet during this turbulent period and will give Standard Chartered the flexibility to take advantage of the opportunities emerging from the current environment,” said the bank.