Britain’s Rolls-Royce Holdings is reportedly in talks with sovereign wealth funds, including Singapore’s GIC, to raise £2.5 billion (S$4.4 billion) as it aims to strengthen its balance sheet.
Rolls-Royce had earlier on slashed 9,000 jobs in May as part of its major restructure.
The Financial Times reported on Saturday (19 Sept) that the aero-engine group is working with bankers at Goldman Sachs on the planned equity raise which would be launched in the first weeks of October.
“We continue to review all funding options to enhance balance sheet resilience and strength,” Rolls-Royce said in a statement.
“We are evaluating the merits of raising equity of up to £2.5bn, through a variety of structures including a rights issue and potentially other forms of equity issuance. Our review also includes new debt issuance.”
The firm noted that no final decisions have been taken as to whether or when to proceed with any of the funding options, nor the precise amount that may be raised.
GIC, on the other hand, declined to comment.
