Bank of America has raised roughly $13bn after it sold 1.25 billion new shares of common stock, a little over 60% of which (or 825 million were done on Tuesday) while the rest were sold previously. This puts the firm a step closer to completing its $33.9 billion capital requirement from the stress test by the Treasury. Shares were sold for $10, more than 10% below its price on Tuesday.
The move also helps the bank stay away from further capital infusion from the government or the conversion of its preferred that could make it the biggest shareholder of the firm. Other sources of capital are the sale of its stake in China Construction Bank, which provided additional $7.3bn and the conversion of privately held preferred shares.
CFO Joe Price said in a statement released: “We are pleased to have this portion of our capital plan completed. This strengthens and diversifies our capital structure.”