Lloyds Banking Group shareholders have approved the rights issue unveiled earlier this week, Lloyds has confirmed, subject to a final count.

An unofficial tally of votes at today's Extraordinary General Meeting saw the rights issue passed with a huge majority.

More than 99% of shareholders approved the capital raising plans.

An official announcement has yet to be made by Lloyds but it was widely expected the rights issue would be approved.

Lloyds will offer new shares to existing investors at 37p per share in what is the country's biggest ever cash-call.

In total, the semi-state-owned institution will offer investors 36.5 billion new shares, on the basis of 1.34 new shares for every 1 existing ordinary share, in a deal which will raise £13.5 billion.

The rights issue – bigger than the £12.5 billion raising carried out by rival bank HSBC - forms part of an effort to raise £22.5 billion in new capital to shore up the bank's balance sheet and allow it to exit the government's Asset Protection Scheme (APS).

Lloyds shares are today trading sharply lower on fears about the bank's exposure to Dubai. Reuters reported that the bank's head of wholesale banking Truett Tate had said that its exposure to Dubai World was 'modest' and did not represent a material threat to the bank.