The ANZ is being tipped to announce a more than $A1 billion ($NZ1.3 billion) capital-raising issue shortly, the only major Australian bank not to have done so in the past 12 months.
Companies across the business sector are shoring up balance sheets with capital-raising issues from recent months, as declining share prices and devaluations edge them closer to breaking banking and financing covenants, and increasing percentages of debt appear on balance sheets.
Speculation in the market is that the ANZ could go to the market in the next few weeks, ABN broker Peter McIntyre said.
"We haven't seen the last of the capital raising by companies," Mr McIntyre said.
He said the ANZ would likely say the cash was for future acquisitions or simply to "strengthen its balance sheet".
However, the ANZ's tier one capital ratio (access to cash on hand for emergencies) was at the lower end of expectations at present, and could be bolstered by capital raising.
ABN research from early May had factored in capital raising by the ANZ of $A1.5 billion, which was "likely to be targeting" to maintain its tier one capital ratio above 8% for the full year 2009.
Numerous companies have gone to shareholders for cash, because commercial lending interest rates are too high with the credit crunch, but investors have to purchase the rights issue or potentially see a dilution of their percentage shareholding as more shares hit the market.
In Australian placements last November and December, the National Australia Bank raised $A3 billion, the Commonwealth Bank of Australia $A2 billion and Westpac $A2.5 billion.
"For investors, their cash [reserves] will be running out and they will be asking themselves if they can afford to participate in full, or not at all.
They will have to stump up to maintain their position," Mr McIntyre said.
However, to maintain investor confidence, each forthcoming individual capital raising should be announced with the backing of major institutional investors, he said.
In early May, the ANZ raised $A1 billion in three-year fixed and floating notes, which was taken up by institutional investors.
More than $3 billion has been raised in New Zealand in recent months in bonds and right issues, as a variety of companies look to underpin balance sheets.
Mr McIntyre said it appeared unlikely the ANZ was going to win through in a bid to buy the Royal Bank of Scotland's $A2.5 billion Asian portfolio.
Had that gone to plan, ANZ was likely to have announced capital raising, and a larger amount, he said.
