Investment Property News - Bueno Investments Limited

A major UK buy-to-let lender has denied it is planning to issue new shares in a bid to raise capital.

Bradford & Bingley's board is rumoured to be deliberating on whether to launch a rights issue.

The reports claim that the bank is likely to try to raise hundreds of millions of pounds to bolster its balance sheet, though the exact amount has yet to be decided.

But Bradford & Bingley has insisted it has no such plans, adding that it has a strong capital base.

It issued a statement saying: "Contrary to press speculation, Bradford & Bingley is not intending to issue equity capital by way of a rights issue or otherwise. Bradford & Bingley has a strong capital base, above its regulatory requirements, and as a result of the board's conservative approach, has funded its business activities through 2008 and into 2009. In the current market environment, the board will naturally continue to monitor closely the balance sheet strength of the business and its funding plans."

Copyright © PA Business 2008

http://www.buenoinvestments.com/uk_property_investment.php (UK Property)

http://www.bradford-bingley.co.uk (Bradford & Bingley)