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Emerging markets lender Standard Chartered plans to raise £1.78 billion through a rights issue.

The UK bank, which makes over 90 per cent of its profits from Asia, Africa and the Middle East, said the rights issue will be priced at 390p per share, a 48.7 per cent discount from the closing price on Friday.

Subscribers will be able to buy 30 new shares for every 91 shares they already own.

The move will strengthen Standard Chartered's balance sheet and give it the opportunity to take advantage of opportunities from the current market, the bank said.

Singaporean sovereign wealth fund Temasek, the bank's largest shareholder, will partially underwrite the rights issue and will also take up shares.

Other underwriters include JP Morgan Securities, UBS and Goldman Sachs International.

Peter Sands, Standard Chartered chief executive, said: "Standard Chartered continues to deliver, despite the challenges arising from the global financial crisis.

"Our balance sheet remains a source of strength for the group and the proceeds from the rights issue announced today will further strengthen our competitive position as significant opportunities emerge in our markets."

In a trading update, the company said it continued to perform strongly in the second half.

Standard Chartered said the global financial crisis is having an increasing impact on its markets but GDP growth in most of the regions the bank operates in remain much higher than in the West.