Rolls-Royce shares tumbled to 17-year lows after the company unveiled a £2 billion (€2.19 billion) investor cash call as part of a mammoth package to bolster its balance sheet in the face of the coronavirus crisis. The engine maker announced the 10-for three rights issue alongside a bond sale to raise at least a further £1 billion, as well as another £2 billion in loan support. Rolls-Royce said the fundraising would help it weather wider economic risks from the pandemic, which has hammered the aerospace industry. Shares dropped 9 per cent, taking the under-pressure stock down to its lowest level since 2003 following recent heavy falls. Rolls said the rights issue was fully underwritten.– PA

Source: The Irish Times October 01, 2020 09:56 UTC