Standard Chartered may need to raise as much as $10bn from investors to comply with stricter regulations, create a buffer for future losses on loans, and invest for growth, according to Mizuho Securities Asia.
Bloomberg News reports that CEO Bill Winters may opt to sell $5bn to $10bn of new shares to boost the bank’s common equity Tier 1 ratio, a measure of high-quality capital, to 11%, and to offset an estimated $824m of bad-loan charges next year, Mizuho said on Wednesday.
'We expect Standard Chartered to launch a rights issue later this year or early in 2016” to “regain investor confidence about the future direction of the bank', said analyst James Antos, who has a buy rating on the stock, in a note to investors. 'Capital raising is essential if the bank is to return to past levels'.
To access the complete Bloomberg News article hit the link below: