B&B denies rights issue

Bradford & Bingley has denied reports that it was planning to raise hundreds of millions of pounds in a rights issue this week.

Several newspapers reported during the weekend that the buy-to-let specialist would launch the rights issue before or on April 22, when it is due to publish a trading update, but the lender says it has no need to raise new equity.

A spokeswoman for the lender says: “Contrary to press speculation, B&B would like to announce that it is not intending to issue equity capital by way of a rights issue or otherwise.”

She adds: “B&B has a strong capital base, above its regulatory requirements, and as a result of the board’s conservative approach, has funded its business activities through 2008 and into 2009.

“In the current market environment, the board will naturally continue to monitor closely the balance sheet strength of the business and its funding plans.”