Bendigo Bank completes $250m raising

Earlier this week, 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 now 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.

According to Bendigo, the placement received “strong support” from both domestic and international investors.

The bank has said that the funds 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 (APRA) “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.

Following the announcement, Bendigo’s managing director, Marnie Baker, said: “We are pleased by the high level of interest and demand from both our existing shareholders and new investors wishing to participate in the placement.

“The successful placement demonstrates strong investor support in our business and our strategy as we continue to evolve our business for the future.”

The new securities are expected to settle on 20 February 2020 and commence trading on the ASX on the following business day.

Bendigo’s new shares will trade under a separate ASX code, BENN, up to and including 5 March 2020, one day ahead of the ex-dividend date for the interim dividend, before commencing regular trading on 6 March.

[Related: Bendigo launches capital raising to fund mortgage push]