Rolls-Royce to raise billions to bolster balance sheet

The engine maker said the fundraising would help it weather wider economic risks from the pandemic, which has hammered the aerospace industry.

It comes on top of a major restructuring announced by Rolls-Royce in May that will see it axe 9,000 jobs globally in response to the crisis – 3,000 of which will be in the UK.

Warren East, chief executive of Rolls-Royce, said: “The sudden and material effect of the Covid-19 pandemic has had a significant impact on the commercial aviation industry, resulting in a sharp deterioration in the financial performance of our civil aerospace business and, to a lesser extent, our power systems business.

“We are undertaking decisive and transformative action to fundamentally restructure our operations, materially reduce our cost base and improve our financial position.

“The capital raise announced today improves our resilience to navigate the current uncertain operating environment.”