Westpac will raise $3.5 billion through a share entitlement offer and lift its home lending rates by 20 basis points to help boost its capital reserves.
As part of the raising the group also released unaudited full year results for 2015, showing cash profits had risen 3 per cent to $7.82 billion.
The capital raising will be in the form of a fully underwritten, pro rate accelerated renounceable entitlement offer, with a offer price of $25.50.
Westpac says this represents a 13.6 per to the company’s closing price on October 13 of $30.44, one the price id adjusted for dividends.
In a surprise move, the bank will also lift its mortgage rates on residential property by 20 basis points, for owner occupiers and property investors. The new rates will take effect from November 20.
Regulatory reform, macroprudential tightening, rising funding costs then bang!
