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Bendigo opens second phase of $250m capital raise

The non-major has invited eligible shareholders to invest in new ordinary share issued to the market as part of a capital raise aimed at funding its home-lending strategy.

Earlier this months, Bendigo and Adelaide Bank halted trading on the ASX following the release of its results for the first half of the 2020 financial year (HY20).

The bank halted trading to launch a $300-million capital raising, which comprises of:

  • a fully underwritten $250-million institutional share placement; and
  • a non-underwritten share purchase plan targeting approximately $50 million.

Bendigo has since successfully completed the share placement at a price of $9.34 per share, hitting its $250 million target. The non-major has resumed regular trading on the ASX.

The bank has now officially launched the second phase of its capital raise, inviting eligible shareholders to apply for up to $15,000 of new fully paid ordinary shares.

The offer to participate in the SPP will remain open until 5.00pm on 13 March 2020.

The issue price for each share under the SPP will be equal to the lesser of:

  • $9.34 – the price paid by institutional investors under the share placement; or
  • the price that is a 2 per cent discount to the volume weighted average price of the share traded on the ASX for the five trading days ending on the closing date of the SPP offer.

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Bendigo has said that the funds raised from both the share placement and the SPP would be used to sustain growth in its residential mortgage business, strengthening its balance sheet and providing an increased buffer above the Australian Prudential Regulation Authority’s “unquestionably strong” capital requirements.

The non-major added that the capital raised would also provide “flexibility” for Bendigo to invest in technology and regulatory reform initiatives.

[Related: Bendigo completes $250m raising]

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