British manufacturer Rolls-Royce has said it is evaluating raising equity of up to £2.5bn amid the coronavirus (Covid-19) pandemic.

The company provided the update following speculations over potential fundraising.

Rolls-Royce said in a statement: “We continue to review all funding options to enhance balance sheet resilience and strength.

“Amongst other options, we are evaluating the merits of raising equity of up to £2.5bn, through a variety of structures including a rights issue and potentially other forms of equity issuance. Our review also includes new debt issuance.

“No final decisions have been taken as to whether or when to proceed with any of these options or as to the precise amount that may be raised.

“A further announcement will be made if and when appropriate.”

Last month, the company finalised a £2bn undrawn term loan, which is partially supported by the UK Export Finance.

The company also stated that it has commenced the second half of this year with £6.1bn liquidity consisting of £4.2bn cash at end June and a £1.9bn undrawn revolving credit facility.

Rolls-Royce added: “We have also launched a major restructuring of our group, in particular our Civil Aerospace business, with forecast annualised pre-tax savings of over £1.3bn by the end of 2022.”

Last month, Rolls-Royce revealed plans to divest ITP Aero and other assets to raise at least £2bn over the next 18 months.

In May, Rolls-Royce revealed plans to axe 9,000 jobs from its global workforce to deal with the reduction in engine and service demand due to the pandemic.