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Macquarie raises capital for investment

29 August 2019 4:02PM
Macquarie Group is looking for A$1 billion of new equity for investment. It has launched a non-underwritten institutional placement, in addition to an associated share purchase plan.The offer follows recent investments by the group, with more in the pipeline. It expects to make investments of approximately $1 billion in the September quarter.This includes Macquarie Capital investments in the renewables, technology and infrastructure sectors in a number of regions. Macquarie Asset Management expects to increase its capital deployment.In addition, Macquarie's capital requirement will increase by an estimated $600 million following APRA's implementation of the standardised approach for measuring counterparty credit risk (SA-CCR).Macquarie Group chief executive Shemara Wikramanayake said in a statement: "Raising new capital at this point allows us to maintain strategic flexibility in light of these opportunities."The placement represents around 2.5 per cent of existing Macquarie shares on issue.Macquarie also provided a trading update, saying the September half result would be about 10 per cent higher than the previous corresponding period but down in the previous half.In the banking and financial services margins are under pressure, while in the corporate and asset finance division loan volumes have fallen.Moody's said the capital raising was credit positive.

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