Rolls-Royce ‘considering’ £1.5bn rights issue
Engine orders have suffered from a sharp downturn in the aviation sector
Rolls-Royce is said to be planning a £1.5 billion fundraising exercise to provide some shelter for its balance sheet during the severe downturn in the aviation sector.
The aero engine builder is looking at options that may include tapping shareholders via a rights issue.
The company is in discussions with BNP Paribas, Morgan Stanley and Jefferies with a view to launch the shares plan in September, according to the Reuters news agency.
Rolls-Royce has been hit hard by the pandemic and has announced that 9,000 jobs will be lost worldwide, of which 700 are expected to be lost at the Inchinnan plant near Glasgow Airport.
It’s not thought that raising any extra capital would reverse any of the planned cutbacks.