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AMP, Mirvac plan to raise over A$1 bln, sucking up cash banks may need

AMP, Mirvac plan to raise over A$1 bln, sucking up cash banks may need
AMP raised A$450 million through a placement of shares to institutional investors at an 11% discount yesterday and plans to raise a further A$100 million through an issue to retail investors. Australian housing developer Mirvac also announced plans yesterday to raise A$500 million through a new share isse. The capital raisings increase the pressure on the big Australian banks as they prepare their own capital raising plans. Many expect the big four banks, CBA, ANZ, NAB and Westpac, will have to raise more than A$2 billion through share issues before Christmas to bolster their balance sheets, mostly through underwritten dividend reinvestment plans. A key question will be who jumps first to get at the head of the queue. * This article was first published yesterday in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.

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