Wednesday, September 23, 2009
Make Hay While The Sun Shines (For The Clouds They Are Gathering)
Barratt Developments, Redrow and Liberty International all announced share issues today to bring down their debts and finance expansion in the second wave of fundraising to hit the sector. Barratt Developments will raise Â£720.5 million through a placing and rights issue as part of a deal with its banks to extend the due date on its debt. Today's rights issue is over Â£200 million more than the company was predicted to raise The company, which sells 1,000 houses a month and has Â£1.3 billion in debt, has said previously that it would not look to raise funds until markets had stabilised, but, with the housebuilding sector showing signs of improvement, it has decided to act.