Friday, October 04 14:18:24
Barclays completed its 5.8 billion pound fundraising today to meet a capital shortfall identified by its regulator, after almost 95 percent of the British bank's investors stumped up more cash.
Barclays launched its rights issue three weeks ago, prompted by the British regulator's demand that it improve its leverage ratio - a measure of its capital to assets - to 3 percent by mid-2014.
Barclays said bookrunners for the offer sold the shares that were not taken up by investors - worth 463 million pounds - at 268 pence apiece, or a 1.8 percent discount to Thursday's close.
Barclays shares were down 0.1 percent at 272.8p by 1110 GMT, which dealers said was a resilient performance and reflected the modest size of the leftover shares.
The bank also plans to sell 2 billion pounds of bonds that convert into equity if the bank hits trouble and to shrink the balance sheet of its investment bank to help it meet its leverage ratio target.
"Post the rights issue the regulatory risks have been reduced but not eliminated," said Mike Trippitt, analyst at Numis Securities, saying there could be "pressure to deleverage the business further".
The rights issue was the biggest by a British bank since 2009 and raised the equivalent of 15 percent of Barclays' market value.
Antony Jenkins, who took over as chief executive a year ago, is trying to rebuild Barclays' reputation after a string of scandals. He said the rights issue would deal "quickly and decisively" with the British regulator's demands.