Barclays raises £4.5bn from Qatar and Sumitomo Mitsui

by Gill Montia

Story link: Barclays raises £4.5bn from Qatar and Sumitomo Mitsui

Barclays has announced that it is raising £4.5 billion in an issue of 1.58 billion shares.

The move involves Qatar Investment Authority (QIA), the authority’s chairman, Sheikh Hamad Bin Jassim Bin Jabr Al-Thani, and Sumitomo Mitsui Banking Corporation (SMBC), which will each take a stake in the bank.

QIA is a sovereign fund that was set up to achieve revenue diversification for the state of Qatar.

The 1.6 billion share placing will raise £4.0 billion via the issue of shares at 282p each and £500 million by placing shares at 296p each. The larger 282p issue is being discounted at 9.3% on Barclays’ closing price yesterday.

The bank says its action will enable it to strengthen its capital base and operate capital ratios that are ahead of its targets, which in the case of its all important tier one ratio, is set at 7.25%.

News of the tie up between Barclays and SMBC will spark speculation that the two institutions will seek opportunities for links between their asset management units their operations in Asia.