Bendigo completes second phase of capital raise

Bendigo and Adelaide Bank has announced that it has completed its share purchase plan (SPP), which forms a part of its $300-million capital raising announced in February.

In an announcement to the ASX, the non-major bank said it had completed the SPP at a price of $6.72 per share, adding the price represents a 2 per cent discount to the volume weighted average price of the bank’s shares traded on the ASX between 9 March and 13 March inclusive.

Applications under the SPP closed on 13 March, with Bendigo and Adelaide Bank receiving $44.8 million in valid applications, bringing the total amount of capital raised to $294.8 million.

Around 89,000 eligible shareholders had the opportunity to participate in the SPP, with around 6 per cent submitting valid applications. Eligible shareholders could apply for up to $15,000 of new fully paid ordinary shares in the bank under the SPP.

The bank confirmed it would not be scaling back valid applications.

Shares are expected to be allotted under the SPP on Monday (23 March) and begin trading on the ASX on 24 March.

The bank reiterated that shares issued under the SPP would rank equally with existing shares from their date of issue, but would not be entitled to receive the interim dividend payable on 31 March, as the record date for the interim dividend has already passed.

In its interim results for the half-year ending 31 December 2019, which were released in February, Bendigo and Adelaide Bank had said the proceeds of the capital raising would be used to support the growth the bank was seeing in its residential mortgage lending, as well as strengthen their balance sheet and provide an increased buffer above the Australian Prudential Regulation Authority’s capital requirements.

The bank had also said the capital raised would provide “flexibility” to invest in technology and regulatory reform initiatives.

In February, the bank halted trading on the ASX after releasing its interim results, in order to launch its $300-million capital raising.

This comprised of:

• a fully underwritten $240-million institutional share placement; and
• a non-underwritten share purchase plan targeting around $50 million.

The bank completed the first round of its capital raising, which was partly aimed at funding its home-lending strategy, in February.

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