Two of the UK’s largest house builders will unveil plans to raise £850m in fresh equity today as pressure on the sector continues to force companies to shore up their balance sheets.
Barratt Developments is set to raise an expected £700m through a placing and open offer, while smaller rival Redrow will ask for £150m.
Senior bankers are expecting another raft of cash calls as UK companies look to take advantage of the recent rally in the global stock markets.
Barratt believes the fund raising would give it flexibility on whether to build up its land bank or pay down some of its debt, which was estimated at £1.28bn at the end of June.
Financial Times, The Times, Daily Telegraph