LONDON, Nov 8 (IFR) - It was the long-disappeared Midland
Bank, rather than Barclays, that used to call itself the
"Listening Bank". But it might be time for Barclays to adopt the
The UK bank is in the market with its first Additional Tier
1 bond - and the stakes could hardly be higher.
Barclays has enlisted a strong cast of lead managers -
Citigroup, Deutsche Bank, Goldman Sachs and UBS - to assist it
to sell its AT1 deal. And it would do well to listen to their
advice and tap into their considerable expertise in capital
Bankers at lead managers on its previous two capital deals
say that the borrower did not pay attention to their advice on
those transactions. As a result, they say, its first CoCo was
too large, while the execution on its second was bungled (the
deal was announced just before Easter and had to be postponed
until after the holidays).
And while trickier credits like Banco Popular Espanol have
found relative success in the AT1 market, Barclays latest foray
will not be easy. After all, a high trigger bond with a coupon
that can be turned off like a tap is not going to be at the top
of every investor's wish list.
Much is riding on the deal. Not just for Barclays, but for
the market as a whole.
Deutsche Bank, for instance, is already lined up behind the
British firm as it needs to issue USD5bn of capital notes to
improve its leverage ratio, while other European and US banks
have to raise as much as USD400bn of bank capital in the coming
"Barclays is very stressed out about this deal," said a DCM
banker. "Deutsche is right behind them and has to raise billions
So this time around, Barclays need to take the hint and
listen to any advice it can get.