LONDON Feb 13 Barclays has paid to
exercise the last warrants from its controversial fundraising
from Middle East investors four years ago in a move to boost the
British bank's capital by 744 million pounds ($1.2 billion).
Barclays said on Wednesday it will pay 6.3 million pounds to
Deutsche Bank and Goldman Sachs to exercise
the warrants early.
Deutsche and Goldman held the warrants - instruments that
convert into shares - after Qatar's sovereign wealth fund locked
in a profit on them in November. Qatar received the warrants as
part of a fundraising by Barclays in November 2008, which meant
the bank avoided taking rescue cash from the UK government.
The cashcall was controversial at the time for being too
generous to Qatar and Abu Dhabi investors, and Barclays has
recently come under scrutiny for its disclosures around the
The last 379.2 million warrants had a gross value of 750
million pounds. Barclays said the net proceeds will boost its
core Tier 1 capital ratio by 0.19 percent, adding to its 10.9
percent core ratio at the end of December.
Qatar had notched up a gain of more than 1.7 billion pounds
from its investment in Barclays in November, according to
Reuters estimates. It still has a 6.7 percent stake in the bank.