Bendigo and Adelaide Bank strengthens its capital position

Bendigo and Adelaide Bank Limited (BEN) has announced its intention to enhance its Tier 1 and total capital position through a Share Purchase Plan (SPP).

The Chairman of Bendigo and Adelaide Bank, Robert Johanson, said the SPP would allow ordinary shareholders the opportunity to acquire additional shares to the value of $7000.

“Our large and loyal shareholder base has always been a great strength of this company and we look forward to building on that,” Mr Johanson said.

“The proceeds of the Plan will strengthen the Bank’s capital base and allow us to continue to grow and expand,” he said.

Under the SPP, eligible ordinary shareholders (being those persons registered as ordinary shareholders as at 7pm (EDST) on 20 November 2008 with a registered address in Australia or New Zealand) will have the opportunity to subscribe for up to $7000 worth of BEN ordinary shares at the lower of $10.00 per share or a five per cent discount to the volume weighted average share price over the five days ending on (and including) the closing date of the offer on 19 December 2008.

Shares issued under the SPP will not be subject to brokerage or other transaction costs and will be entitled to receive any dividends declared for the first half of the 2009 financial year.

Further details of the SPP will be mailed to eligible shareholders later today.