Barclays refuse to rule out rights issue

by Richard Kilner

Story link: Barclays refuse to rule out rights issue

Barclays, the third largest bank in the UK, has neither confirmed nor ruled out the possibility of a rights issue in order to raise capital.

Recently the Royal Bank of Scotland was forced to ask for billions of pounds from shareholders through such a mechanism, after earlier statements indicating such a course of action would not occur.

Marcus Agius, Barclays’ chairman, has said that the bank has a long-term view to increasing its capital, but has blankly refused to say that the firm would or would not offer a rights issue as a means to achieving the desired end.

Agius referred to the various options available to the firm, which include not only a rights issue, but raising money through sovereign funds.

The spotlight of speculation has shifted to Barclays because, after RBS, it has the worst tier 1 capital ratio, prompting suggestions that £6-7bn could be raised through a rights issue.