StanChart rights issue to raise $2.7b

Emerging markets bank Standard Chartered plans to raise 1.8 billion pounds ($2.7 billion) from a rights issue to boost its capital base and give it flexibility to pursue acquisitions, it said yesterday.

The London-based lender said the economic picture had deteriorated this month and, although the bank was performing well, the outlook was unclear.

The bank's chief executive, Peter Sands, said investors were keen for banks to hold more capital during turbulent market conditions and there was merit in retaining an excess of cash.