Bradford & Bingley make €377m cash call

Mortgage bank Bradford & Bingley today asked shareholders for £300m (€377m) in a bid to bolster its balance sheet.

The rights issue, which will see shares offered at a 48% discount to the company’s share price last night, follows similar moves by larger banking groups Royal Bank of Scotland and Halifax Bank of Scotland.

Bradford & Bingley denied as recently as last month that it was planning to carry out a cash call.

However, it said today that the move would reinforce its position as one of the UK’s “better capitalised” banks.