Barclays plans 5.8 bln stg rights issue to lift capital
LONDON, July 30
LONDON, July 30 (Reuters) - Barclays plans to raise 5.8 billion pounds ($8.9 billion) from its shareholders to answer pressure from Britain's regulator for the bank to boost its capital strength and meet another 2 billion pound mis-selling charge.
Barclays on Tuesday said it will offer shareholders one new share for every four owned at 185 pence in a rights issue, which offers existing shareholders the right to buy discounted shares first to avoid diluting them. The bank also plans to sell 2 billion pounds of bonds that convert into equity or are wiped out if it hits trouble, and shrink its loans.
Past problems continue to haunt Barclays and its cashcall comes after the Bank of England last month told it to increase its leverage ratio - a measure of equity to assets - to reduce its risk.
- Malaysia Airlines plane missing, presumed crashed in South China Sea |
- China draws 'red line' on North Korea, says won't allow war on peninsula
- Malaysian plane crashed off Vietnam coast: state media
- No signal picked up from missing Malaysia Airlines plane-Vietnam official