British banking major Lloyds is planning to raise 23 billion pound by way of debt and equity to bolster its balance sheet which is under pressure following acquisition of troubled mortgage lender HBOS,a media report says. The controversial 23 billion pound "fund raising,being finalised this weekend,will be one of the biggest seen in London," a newspaper said said. According to the report,the bank would raise 12 billion pound by way of offering shares via rights offering to its existing shareholders and a further 11 billion pound through issue of new loans. "The bank will ask shareholders to inject about 12 billion pound through a rights issue. Taxpayers,who own 43 per cent of Lloyds,will have to cough up about 5 billion pound,the report said. Lloyds would raise a further 11 billion pound through issue of new loans to replace existing borrowings,it said. The UK daily noted that the cash would free Lloyds from having to take part in the government insurance scheme. Last year Lloyds acquired troubled mortgage lender HBOS which put its balance sheet under pressure. The said fund raising would "bolster its balance sheet and finally repair the damage caused by its disastrous takeover of rival HBOS," Sunday Times said.
