Barclays, the UK’s third-largest bank by assets, has
confirmed it is to raise up to £7.3 billion ($11.8 billion) of
additional capital from existing and new strategic and
institutional investors.
In the process, the bank has avoided tapping the UK government
for funds to shore up its business unlike rivals Royal Bank of
Scotland, HBOS and Lloyds TSB (see RBI
600).
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But Barclays’ latest cash injection – it raised £4.5 billion as
recently as June – comes at a cost: it will have to pay annual
interest of 14 percent on some of the capital instruments and pay
£300 million in fees.
Once the capital raising deal is concluded, Sheikh Mansour Bin
Zayed Al Nahyan, a member of Abu Dhabi’s royal family, will own
16.3 percent of the bank while investors from Qatar will hold 15.5
percent.
With significant international shareholders, including China
Development Bank and Singapore’s Temasek, the bank will be more
than 35 percent foreign-owned.
Barclays also issued a trading update and said that group profit
in the first nine months of this year was “slightly ahead” of the
same level a year earlier.
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By GlobalDataAccording to the bank, its UK retail arm had enjoyed solid
income growth, reflecting good performances in current accounts and
savings, while its share of net new mortgages in the quarter was 32
percent, up from 26 percent in the first half of the
year.
