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...

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