(30 November 2009 – UK) 99 percent of shareholders in state controlled Lloyds Banking Group (LBG) approved the bank’s plans to raise £13.5 billion (A$24 billion) from the sale of discounted shares.Shareholders were invited to vote last week to back the plan for the bank to raise the funds through the sale of new shares priced at only 37 pence each.
The bank also proposes to convert £9 billion of a debt into bonds to generate income.
The ambitious goal is to raise £22.5 billion (A$40.46 billion) in fresh capital; deriving £13.5 billion from the mammoth sale to the existing shareholders.
The vote held last week in Birmingham, will free Lloyds from having to take part in a costly government insurance scheme insuring ‘toxic debt’.