Barclays Will Raise $11.8 Billion From Investor Group

Barclays Plc, Britain's second biggest bank, will raise 7.3 billion pounds ($11.8 billion) by selling securities to investors including funds in Abu Dhabi and Qatar to restore capital without tapping the UK's bailout plan, Bloomberg reports. Barclays will sell 5.8

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Barclays Plc, Britain’s second-biggest bank, will raise 7.3 billion pounds ($11.8 billion) by selling securities to investors including funds in Abu Dhabi and Qatar to restore capital without tapping the UK’s bailout plan, Bloomberg reports.

Barclays will sell 5.8 billion pounds of convertible notes and preferred shares paying as much as 14% annual interest to the Mideast investors, the London-based company said in a statement. The bank also plans to sell as much as 1.5 billion pounds of securities to new and existing shareholders.

Chief Executive Officer John Varley has until the end of the year to meet new capital requirements set this month by the UK to prevent credit writedowns, a loss of confidence and a recession from destroying the country’s banks. While Barclays will avoid the government’s restrictions on dividend payouts and executive bonuses, the bank’s second sale of securities this year will dilute the holdings of most investors.

The full article is available at the Bloomberg’s web-site.

D.C.

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