SINGAPORE, Nov 24 (Reuters) - Standard Chartered is likely to announce later on Monday it plans to raise about
$3 billion through a rights issue, a source told Reuters, as it faces a slowdown in its key emerging markets.
The move by the Asia-focused bank, which has dodged massive losses from the credit crisis suffered by some of its competitors, came as analysts called for a capital cushion to withstand potential losses in Asia and the Middle East.
Singapore state investor Temasek Holdings, which owns a 19 percent stake in the UK-based lender, is considering
"The announcement will be likely made later today about the rights issue," said the source, who asked not to be identified because the deal is not public.
whether it should take part in the rights issue, said the source familiar with the plan.
Standard Chartered in Hong Kong and Temasek both declined to comment.
By 0445 GMT, Standard Chartered's shares had lost 5.3 percent in a Hong Kong market down 1.2 percent.
Standard Chartered said on Nov 17 it was comfortable with its capital position after the Sunday Telegraph newspaper said it was considering raising billion of pounds to boost its balance sheet.
Nomura Research said in a report last week it was negative towards Standard Chartered because of fears it may suffer losses from emerging markets.
"We see scope for significant credit impairments in markets such as Korea, Dubai and Pakistan," Nomura analysts said in a report on UK-listed banks.
"Capital ratios now also appear relatively stretched, given the capital exercises undertaken by many other European banks."
Temasek, which also owns stakes in Barclays and Merrill Lynch has been hurt by a sharp fall in the value its investments as stocks declined amid the credit crisis.
It was unclear if Temasek will raise its stake or buy shares in order to avoid a dilution.
A Financial Times report on Monday said Standard Chartered was on Sunday night finalising details of the issue, which is expected to be priced at about 400 pence per share - a large discount to Friday's closing price of 759.5 pence.