Barclays shimmies past rights issue traps in £4bn share sale

26 Jun 2008

Barclays launched an audacious £4.5bn fundraising on Wednesday that deftly avoids the deep discounts required by other banks’ rights issues by recruiting sovereign wealth funds and bank investors.

Equity market observers were unanimous in their praise for the structure, which will raise Barclays’ capital ratios back towards safer levels without a potentially risky and highly dilutive rights issue.

Recent rights issues from Royal Bank of Scotland, UBS, and Crédit Agricole (which closed its Eu5.9bn deal this week) ...

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