Bradford & Bingley rights issue gets green light

17 July 2008

Bradford & Bingley shareholders have backed the bank’s £400 million cash call to help boost its balance sheet.

Despite poor attendance at the beleaguered buy-to-let lender’s AGM earlier today, 93% of shareholders voted for the rights issue to go ahead.

Rod Kent, executive chairman of Bradford & Bingley, told members: "We're pleased that our shareholders have voted in favour of the enlarged rights issue, the proceeds of which will strengthen our capital base, ensuring we remain one of the better capitalised banks in the UK."

The bank was forced to expand its rights issue early in July after the American investor it had lined up to take a stake in the business, got cold feet.

Originally, Bradford & Bingley planned to raise £258 million through a rights issue and £179 million from private equity firm Texas Pacific Group (TPG), which would then take a 23% stake.

However, after TPG backed out of the deal, Bradford & Bingley decided to raise the full £400 million through a rights issue.

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