Member Article

Barclays looks for £5.8bn from investors

Barclays has announced its intention to raise £5.8bn through a rights issue to meet regulatory demand on the distribution of its finances.

Media speculation had built prior to the announcement from Barclays as regulatory requirements have prompted the manoeuvre.

Leverage ratio targets, the amount of equity to assets required by the Bank of England’s Prudential Regulation Authority, are set at 3%.

Barclays was required to increase their leverage ratio in order to de-risk.

The Bank will issue one new ordinary share for every four existing ordinary shares at an issue price of 185 pence per new ordinary share.

The rights issue has been underwritten by a syndicate of banks comprising Credit Suisse, Deutsche Bank, BofA Merrill Lynch and Citi.

Barclays also published their first half results that showed £3.59m pre-tax profit, a fall of 17%.

This was posted in Bdaily's Members' News section by Tom Keighley .