HSBC shareholders approve plan to raise $18.06 billion

Shareholders in Europes biggest bank HSBC on Thursday approved a plan to boost its capital by 12.5 billion pounds (13.3 billion euros, 18.06 billion dollars) to withstand the financial crisis. The proposal was backed by a 99.1-percent majority. HSBC outlined its plan for a record British rights issue earlier this month when it reported a 70-percent plunge in annual net profits.
London-based HSBC had been regarded as one of the more robust global banks as the crisis devastated many top lenders around the world and has refused British government financial assistance in contrast to some of its rivals. HSBC is to offer investors five new shares at a heavily-discounted 254 pence each for every 12 they already own. In midday London trade on Thursday, HSBCs share price was up a huge 9.27 percent at 477.25 pence.