Inside sources told the Financial Times that the move could be officially announced sometime this week, with Standard Chartered looking to bring in between Â£5 billion and Â£7 billion ($7.9 billion and $11 billion).
The intention of the issue is to protect the UK-based bank from new global capital rules requiring financial institutions to hold a minimum tier one capital ratio of seven per cent.
While the bank's ratio stood at nine per cent at the end of June, it wants to pre-empt the full impact of the rules, which are set to be introduced gradually between now and 2019.
Last month, Jean-Claude Trichet, president of the European Central Bank, said the new legislation will bring about long-term stability for the banking sector.
"The transition arrangements will enable banks to meet the new standards while supporting the economic recovery," he added.
By Claire Archer