Two UK-listed companies have launched heavily-discounted rights issues in a bid to strengthen their balance sheets, demonstrating the need for reductions on equity offerings in order to stimulate investor demand. It comes after Italian bank Unicredit attracted negligible interest on its own €3bn ($3.9bn) issue after failing to offer shareholders a markdown.

Mining company Xstrata today announced plans to raise £4.1bn (€4.5bn) from a rights issue to pay off debt, offering existing shareholders two new shares for every one held at a price of £2.10.