Australia's CBA announces A$5b rights issue, record profit

Sydney

COMMONWEALTH Bank of Australia unveiled a A$5 billion (S$5.16 billion) rights issue and another record profit on Wednesday, completing a round of fundraising by Australia's "Big Four" lenders designed to strengthen their finances.

CBA, the country's No 2 lender by assets, announced a fully underwritten 1-for-23 rights issue at A$71.50 a share, a 12.9 per cent discount to Tuesday's close. This brings the total funds raised by Australia's major banks since May to A$17 billion.

Chief executive Ian Narev said tighter regulatory capital requirements would not affect the bank's dividend payments, which are among the highest in the Asia-Pacific region. He flagged there were no further fund raisings in store for now, responding to fears that the search for cash could eat into shar…