It’s not a rights, but a “firm placing,” alongside a regular placing and open offer. Highlights:
- Raising £500m, some 169m new shares go to Sumitomo Mitsui Banking Corporation at 296p on a firm basis, a discount of 4.7 per cent to Barclays’ closing price on Tuesday.
- Raising £4bn, 1.4bn new shares are available through a placing and open offer at 282p-a-share, a discount of 9.3 per cent, with existing shareholders offered clawback terms of 3-for-14.
- The Qatar Investment Authority has put £1.76bn on the table, while Qatar’s Sheikh Hamad Bin Jassim Bin Jabr Al-Thani has agreed to inject £533m directly.
- China Development Bank and Singapore’s Temasek, which took stakes in Barclays last year, will put up a further £136m and £200m, respectively.
- Unnamed institutional investors have agreed to provide £1.34bn.
- Money raised will allow Barclays to pursue “an unusual competitive opportunity.”
- Number of shares in issue grows 19.4 per cent.
- “Economic profit” goals remain unchanged; current trading as per May’s interim management statement.
- Dividend policy intact.
As far as the effect on capital ratios goes:
The Board estimates that, taking into account the proceeds of the Firm Placing and the Placing and Open Offer, on a pro forma basis Barclays would have reported a tier one ratio of 8.8% and an equity tier one ratio of 6.3% as at 31 December 2007 (on a Basel II basis). The Board intends that, following the Firm Placing and the Placing and Open Offer, Barclays will run ratios ahead of long term target levels, particularly while current market turbulence persists.
Result? Barclays share price at an indicated 327p on Wednesday, up 16.25p.
Analyst meeting at 10am BST with John Varley.
Related links:
Barlcays statement
Barclays unveils £4.5bn share sale – FT.com