Thursday, September 12, 2013

Barclays September 13 Rights Issue at 5.8 billion pound ($9 billion)


British bank Barclays said on Wednesday it will launch its 5.8 billion pound ($9 billion) rights issue, the biggest by a British bank since 2009, on Sept. 13.

The bank said on Wednesday the entitlement to take part in the issue will be the close of business on September 13. The bank will publish a prospectus for the share issue after that time.
The bank is raising the money after Britain's financial regulator said it needed an extra 12.8 billion pounds to cushion it against potential market shocks.

The rights issue, the biggest by a British bank since 2009, could run into competition from the sale of Britain’s shares in Lloyds Banking Group. The government could sell £4-6 billion of its Lloyds stake in the next few weeks before national political party conferences in late September, industry sources have said.

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