Spanish banking giant Santander, which weathered a deep economic crisis at home in recent years, has raised nearly EUR7.5bn ($8.88bn) by selling new shares to boost its balance sheet.
Santander sold 1.2 billion shares at EUR6.18 each to institutional investors overnight, The Wall Street Journal reported.
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The bank, which in the past resisted pressure from investors to raise fresh capital, intends to use the funds to finance organic growth plans.
The banks CFO José García Cantera said Santander plans to end 2015 with a capital ratio above 10% and maintain its cushion between that figure and 11% in the medium to long term.
Santander also decided to cut its annual dividend from 0.60 to 0.20, another move that will strengthen the balance sheet.
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By GlobalData
