29 April 2008

HBOS in Rights Cash Call for £4 Billion

The Halifax Bank of Scotland is going to investors for £4 billion in new money. The bank has announced a two for five issue of new shares at a 45% discount to yesterday's (28th April) closing price. HBOS, through its Halifax subsidiary, is Britain's biggest mortgage lender. The rights issue follows last week's £12 billion issue from Royal Bank of Scotland.

Despite increased market liquidity provided by the Bank of England and recent reductions in base rates, mortgage rates continue to rise.

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