Barclays secures Middle East money - Mercedes-Benz Forum

LinkBack Thread Tools Display Modes
post #1 of 2 (permalink) Old 10-31-2008, 08:36 PM Thread Starter
CH4S Artist
Teutone's Avatar
Date registered: Sep 2004
Vehicle: 1985 500SEC, 1991 190E 2.6.
Location: Los Angeles / Hannover Germany
Posts: 34,394
Mentioned: 12 Post(s)
Quoted: 1084 Post(s)
Lifetime Premium Member
(Thread Starter)
Barclays secures Middle East money

Barclays secures Middle East money

Barclays is Britain's second biggest bank [EPA]

British bank Barclays is raising $12.1bn from investors in Qatar, Abu Dhabi and elsewhere to allow it to avoid taking bailout money from the UK government.

The fundraising is being made through a range of complex financial instruments, which could see Middle East investors owning about one third of the bank.

Concern that the cost of the funding will be higher than capital available from the government dragged Barclays shares lower after an initial jump.

Britain's second biggest bank is raising up to $5.67bn of the money from Sheikh Mansour bin Zayed Al Nahyan, a member of Abu Dhabi's royal family, giving him a 16.3 per cent stake in the company.

Qatar stake

Barclays is also raising up to $4.2bn from Qatar's sovereign wealth fund and about $487m from members of Qatar's royal family. That could leave Qatari investors holding up to 15.5 per cent.

The bank's shares initially rose as investors welcomed the bank's ability to raise cash in tough markets and as it said group profit in the first nine months of this year was "slightly ahead" of the same level a year earlier.

Barclays' investor base has been transformed in the past two years, as it has raised funds from investors in China, Singapore and Japan as well as the Middle East, and the bank expects to benefit commercially from the links as well as getting cash.

"There has been a significant shift in the availability of capital and economic power in the world over the last five years and we're ensuring we're aligned with those changes," John Varley, the chief executive of Barclays, said.

Asked whether the bank had enough capital to avoid more fundraising, he said: "Yes, we have what we need."

Bailout rejected

Earlier this month, Barclays had turned down an offer of government funds under Britain's $400bn bailout package, saying it would raise the capital privately.

Rivals Royal Bank of Scotland (RBS), Lloyds TSB and HBOS have agreed to take up to $60bn of taxpayers' funds to help rebuild balance sheets hit by the global credit crisis and prepare for possible recession.

Barclays said when the government's recapitalisation plan was announced that it planned to raise about $10.5bn itself, with almost $4.8bn from the sale of preference shares and the rest from selling ordinary shares.

It had until the end of March to raise the funds.

Barclays has lost billions of pounds from credit-related asset writedowns and is faced with a sharply slowing UK housing market and economy, but it has fared better than many rivals.

The bank expects to gain a competitive advantage by raising capital privately, while RBS and others will have the government as a major shareholder, limiting their room for manoeuvre.

Source: Agencies
Teutone is offline  
Sponsored Links
post #2 of 2 (permalink) Old 10-31-2008, 08:51 PM
BenzWorld Elite
Date registered: Jul 2006
Posts: 5,543
Mentioned: 0 Post(s)
Quoted: 0 Post(s)
so Arab money stink less than than UK Government money?

I used to work for those bastards, barclays, btw. Long before that.
maine_coon is offline  
Sponsored Links

  Mercedes-Benz Forum > General Mercedes-Benz Forums > Off-Topic

Quick Reply

Register Now

In order to be able to post messages on the Mercedes-Benz Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Please enter a password for your user account. Note that passwords are case-sensitive.


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:


Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode

Similar Threads
Topic Author Forum Replies Last Post
Why so many old mercs in the middle east? cybernoir W126 S,SE,SEC,SEL,SD,SDL Class 31 06-23-2008 10:40 AM
democracy in the middle east mzsmbs Off-Topic 0 01-24-2006 12:11 PM
What would happen to the Middle East.... prtdvl Off-Topic 14 08-19-2005 01:27 PM
Can anyone tell me the US policies in the Middle East? tiggerfink Off-Topic 10 06-02-2005 07:32 AM
Middle East Demon_possessed Off-Topic 0 05-12-2005 12:08 PM

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Title goes here

video goes here
description goes here. Read Full Story
For the best viewing experience please update your browser to Google Chrome