Ann: Entitlement Offer Booklet, page-11

Yeah, loan funded plans are very common, though usually it is a loan for newly issued shares, so the immediate cash effect is $Nil (it's a book entry to issue both the shares and the loan against them).

Loan funded plans to acquire stock on market are less common but are out there. My firm had one a few years back during a period we were half owned by a public company. They provided funds to acquire shares on market and we allocated to staff with attached loans. The loans were repaid through the dividends on the shares but otherwise limited recourse.

I can't say I've ever seen loans to staff as a use of funds from a raising though.

But then, I saw a cap raising the other week where the use of funds was to pay for the costs of being taken over. That was certainly a new one!