The company, whose main business interests are in Asia, said the money raised would help it take advantage of opportunities in the emerging markets sector, including making acquisitions in this area.

Standard Chartered said it would launch two corporate bonds to raise the requisite capital. The bank said it would issue 500 million euros worth of subordinated guaranteed convertible bonds which will count as Tier II capital prior to conversion.

It will also issue 500 million euros worth of non-cumulative perpetual preferred securities which will count as Tier 1 capital.

"We are excited by the opportunities for investment to develop our unique franchise. Our capital strength has allowed us to emerge stronger from the turmoil in Asia. We intend to maintain this strength as the economies in the region rebound and we pursue our growth strategy," Standard Chartered group chief executive officer (CEO) Rana Talwar said in a statement.

The group forecast a return to profit growth for the forthcoming financial year on February 22, when it announced a 28 percent fall in full year pre-tax profits for 1999 to 507 million pounds, in line with market expectations for 504 million pounds.

Standard Chartered shares have outperformed the FTSE All Share Banks Index by 8.9 percent so far this year, according to Reuters Securities 3000 data. Shares of the company closed at 848-1/2P On March 3.