Macquarie Group shares lost 7.25 %, or $1.23, to $$15.75 yesterday, the 10th day in a row that they have fallen.
The tumble forced the bank to issue a statement saying it has no outstanding capital commitments to its listed funds (such as Macquarie Airports and Macquarie Infrastructure).
Last week, the bank said it had no plans to raise capital after a 45% drop in its shares this year.
In yesterday’s statement, the company said it has no capital commitments to its listed funds and has no plans to increase its investment in them.
The funds are likely to contribute less than 5% of the company’s operating income before impairments this fiscal year, Macquarie said.
"In terms of debt funding arrangements, none of the businesses within the Macquarie ASX listed specialist infrastructure funds have any uncovered refinancing requirements for 2009.
"For the major listed real estate funds (Macquarie Office Trust and Macquarie CountryWide Trust), the 2009 refinancing requirements are currently anticipated to be covered by initiatives already completed or announced," Macquarie Group said in the statement.
The report detailed a long list of fund raising and refinancing decisions by the various funds within the Macquarie family.
"Macquarie notes that a number of its major specialist listed funds have stated they are reviewing a range of further initiatives focused on closing the gap between valuation and security market price and ensuring an appropriate capital structure for the overall fund and its underlying assets.
"These initiatives, while incomplete and confidential at this stage, may include major asset sales, further debt refinancing, fund privatisation, security buybacks and capital returns.
"In accordance with the funds’ corporate governance policies and procedures, which ensure that each fund is managed on a standalone basis in the best interests of its security holders, all of these initiatives will require the approval of the fund’s Independent Directors and, in most cases, will also require approval by fund security holders prior to completion.
"Macquarie’s listed specialist funds represent only a small part of the overall Group’s operations and earnings. Included within the outlook guidance provided at the Macquarie Operational Briefing on 5 February 2009, it is estimated that the listed funds will provide less than 5% of operating income before impairments for the Group for the year to 31 March 2009.
"Macquarie has no outstanding capital commitments to its listed specialist funds. It has no plans to increase its investment in the listed funds. The successful conclusion of the initiatives noted above is likely to result in a return of capital from the listed funds over the next 6 months."
Will the market listen? And will the shorting ban on financial stocks end this week..
ASIC will discuss the future of the bank later today.
The question is whether we want more instability among our banks on top of what we have already witnessed here, and in the US.
Macquarie’s fall has happened without the shorts active.
