HSBC plans to raise GBP12.5 billion to help bolster its capital cushion and fund acquisitions. This capital raising,
despite the negative news, is a positive one as it points to the bank’s significant strength and a new-found
confidence in the banking sector which has proven to be hugely significant. This capital raising will be a
rights issue to its already existing shareholders and will not entail significant injections or assistance
from banks as is the case with RBS and Llyods. This will be a plain old rights issue to its shareholders.

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Posted by Shue on April 28th, 2009 :: Filed under HSBC
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