* Barclays says 94.6 pct of shareholders subscribe to rights
* "Rump" placing worth 463 mln stg sold at 268 pence/share
* End of 5.8 bln stg rights issue to meet leverage ratio
* Shares down 0.1 pct at 272p
By Steve Slater
LONDON, Oct 4 Barclays completed its
5.8 billion pound ($9.4 billion) fundraising on Friday 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
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
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.
Investors have broadly welcomed his turnaround plan,
although he still faces challenges to improve profitability and
tackle a raft of legacy issues. The rights issue forced him to
push back his target to deliver a return on equity above about
11.5 percent by a year to 2016.
A slowdown in income from selling bonds and interest rate
products, the core business for investment banks, will hurt
third quarter profits across the industry.
Barclays' rights issue prospectus also said it faced a 50
million pound fine from Britain's Financial Conduct Authority
for its failure to adequately disclose fees it had paid Qatari
investors over the last five years.
Those fees, linked to fundraising in 2008, continue to be
investigated by other authorities in Britain and the United
Qatar Holding invested 5.3 billion pounds in two
fundraisings, which helped it avoid the government bailouts of
rivals Lloyds and Royal Bank of Scotland.
It is still Barclays' biggest shareholder with a 6.3 percent
stake and subscribed to buy more shares in the rights issue to
maintain its stake, but did not buy any extra, a person familiar
with the matter said.
Investors in China, Hong Kong, Japan and South Africa were
not allowed to buy shares in the offer because Of local laws.
China Development Bank and Japan's Sumitomo Mitsui are
among the bank's top 20 shareholders after investing in 2008,
and it was unclear if they could participate through a nominee
Advisers on the rights issue were Credit Suisse, Deutsche
Bank, Bank of America Merrill Lynch, Citi and Barclays itself.