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Publishing its full year 2008/09 results, the group recorded a £1.9bn loss for the 12-month period ending 31 March 2009.

It also revealed that total loan impairments in the period were £848m, compared with £38m the year before. The impairment charged included a £47m write-down on Bestinvest.

At the same time, the group also revealed a £732m rights issue that has been approved by the board.

It is expected that the rights issue will enable 3i to strengthen its balance sheet and provide flexibility and further capacity for it to manage existing assets for value over time and invest in new opportunities as they arise.

3i chief executive Michael Queen said: "The rights issue will accelerate the reduction of net debt, strengthen the balance sheet against further falls in value, facilitate maintenance of an investment grade credit rating, enable the group to manage the existing portfolio over time to maximise returns and provide capital for new investment assets at a valuation low point.

"Immediate priority is to ensure 3i performs to its potential through the current downturn and is well placed to use its strong market position to take advantage of the opportunities that will be available as the global economy starts to recover.

"While the operating environment remains very challenging, I have great confidence in 3i's intrinsic strengths."

The board has also decided, in light of the group's financial results for the year and the proposed rights issue, not to recommend a final dividend for the year ended 31 March 2009.