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HBOS confirms £4bn rights issue

HBOS has confirmed plans to launch a £4bn rights issue in an attempt to shore up its capital, it was revealed this morning.

The UK’s biggest mortgage lender says shareholders will be offered two new shares for every five existing shares priced at 275p.

The bank says it has taken a write-down of £970m against assets held in its trading book in the past year.

Andy Hornby, chief executive at HBOS, says: “We are planning for a more challenging environment ahead and the proceeds of the rights issue should ensure that we benefit from strong ratios even if the macro-economic environment deteriorates further.”

Despite these challenging conditions, the group reports what it calls a satisfactory trading performance.

The announcement from HBOS follows the move from Royal Bank of Scotland last week, which also sought to raise cash from its shareholders to the tune of £12bn.


Mortgages for Business reports best ever trading month

Mortgage packager Mortgages for Business has seen a 154% increase in sales since March 2007, this is also their busiest ever month since the packaging operation of Mortgages for Business was set up in late 2006. Nick Blunt, head of business partner development at Mortgages for Business, says: “Contrary to some opinions across the market, […]

In the Hot Seat

This month, Rachel Bancroft, managing director at KGB Packaging takes her place in’s hot seat and discusses why the packager sector is one the most resilient and entrepreneurial in the market.

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I’ve had a frustrating time with a deal collapsing at the last minute. This could become more commonplace so brokers may have to start charging customers upfront fees, says Sue Read

piggy, cash, money

Reassuringly focused on claims

By Ross Jackson, senior protection marketing manager We’re sure you’ll have heard your customers say ‘But insurance companies don’t pay claims’ when giving a reason for not wanting to take out protection. In fact, our State of the Protection Nation research showed that 27 per cent of consumers asked didn’t think protection providers paid out […]


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