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Posted On: 27 October 2008 08:12 am
Updated On: 12 November 2020 02:08 pm

Qatar to increase share in Barclays

Khalifa Al Haroon
Khalifa Al Haroon
Your friendly neighborhood Qatari
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Qatar Investment Authority is set to boost its investment in British bank Barclays as part of a £2bn ($3.1bn) rescue package, The Observer reported yesterday. The Qatari fund could subscribe to £1bn of new loans stock in the British bank, in which it already holds an eight percent stake, with another £1bn being taken up by the bank's institutional shareholders, the daily said. Barclays needs the funds to comply with new government requirements to meet tighter capital adequacy ratios, The Observer said. Barclays declined to comment on the report. QIA will take up high yielding securities that will pay a relatively high rate of interest, the newspaper said. One of Britain's leading banks, Barclays did not join its competitors this month in taking up government help to battle the financial crisis, saying it would go it alone and raise more than £6.5bn from investors. Barclays is also expected to try to raise another £3bn through a rights issue which will be announced after it has published its full year results in February. It is thought to be hoping that its annual figures will be strong enough to win the backing of investors. The funds will allow Barclays to say that it is on track to meet new government requirements that force banks to raise additional cash to meet tighter capital adequacy ratios in the wake of the credit crunch, Observer said The Pen