French bank Crédit Agricole has announced it is to embark upon a right’s issue to raise €5.9bn.
The firm has reasoned that the move is necessary to bolster its capital ratios, and to allow its business to continue to grow organically.
The decision was made yesterday when the board of directors, chaired by René Carron, met and reviewed the last three months ending on 31 March 2008.
In light of the ongoing worldwide financial crisis and changing regulations a vote was cast the decision to go ahead with a rights issue was made.
The bank is aiming to achieve a Tier 1 ratio of between 8% and 8.5%, and to maintain it throughout the duration of the financial crisis.
Assuming market conditions are acceptable, the rights issue will be made before summer.