Barclays pays dearly for independence

Middle East investors provide the UK bank with more cash, but the high cost of the $11.4 billion capital injection raises questions about whether government funding would have been preferable.

On Friday, Barclays raised ú7.05 billion $11.4 billion of new capital from existing and new Middle East investors and others. The funding is split into ú3 billion worth of reserve capital instruments RCIs with warrants paying a coupon of 14%, and ú4.05 billion worth of mandatorily convertible notes.

Net of commissions payable to investors and arrangers Credit Suisse and JPMorgan Cazenove û estimated at about ú300 million û Barclays will pocket around ú6.75 billion.

Barclays made good on...

To continue reading, please login or register for free

Click for more on: barclays | qatar | abu dhabi | middle east

Print Edition

FinanceAsia Print Edition


  • 2nd Compliance Summit Southeast Asia

    17 August 2017  |  Singapore
    The 2017 Compliance Summit Southeast Asia will take an in-depth look at the key compliance considerations today with a focus on regulation and new ...