ANZ to raise A$1.1bln in new capital via div reinvestment plan

ANZ has announced that UBS AG (Australia Branch) will underwrite ANZ's dividend reinvestment plan in a deal that could raise around A$1.1 billion worth of capital for the bank. UBS agreed to underwrite 75 million ANZ shares. Shares were priced at A$14.46 at time of publishing. The price UBS will pay for each share will be equal to the average of the daily volume weighted average sale price of ANZ ordinary shares sold on the Australian Stock Exchange in the ordinary course of trading over the 20 trading days on and from 14 November 2008, until and including 11 December 2008. Banks are attempting to find ways to raise new capital as the global credit crunch has tightened capital raising options.