Rolls Royce : Considers Raising Up to GBP2.5 Billion to Improve Balance Sheet

By Matteo Castia

Rolls-Royce Holdings PLC said Saturday that it was considering an equity raise of up to 2.5 billion pounds ($3.23 billion), one of several options being reviewed by the company to strengthen its balance sheet.

The U.K. engineering company said the fundraise would be done through a variety of structures, including a rights issue and potentially other forms of equity issuance.

"Our review also includes new debt issuance," it added.

The company specified that it continues to evaluate all funding options and that no final decision has been taken so far regarding as to whether or when to proceed.

Write to Matteo Castia at [e-mail]

Corrections & Amplifications

This article was corrected at 0743 GMT to reflect that Rolls-Royce Holdings PLC said Saturday that it was considering an equity raise of up to 2.5 billion pounds ($3.23 billion. The original version of this article incorrectly stated the company said it was considering an equity raise late Friday.