FACTBOX - Structure of Barclays' fundraising

Fri Oct 31, 2008 12:08pm GMT
 
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(Reuters) - Barclays is raising 7.3 billion pounds from investors in Qatar, Abu Dhabi and elsewhere through a range of complex capital instruments.

Britain's second biggest bank avoids having to take government funds because of the deal, though it will have to pay annual interest of 14 percent on some of the instruments and pay 300 million pounds in fees.

The deal will see Sheikh Mansour Bin Zayed Al Nahyan, a member of Abu Dhabi's royal family, and investors in Qatar owning almost one-third of the bank.

The following are details of the capital raising, its investors, fees and timetable:

STRUCTURE:

Barclays will issue 3 billion pounds of reserve capital instruments (RCIs), which will pay annual interest of 14 percent until June 2019.

In conjunction with the RCIs, investors have subscribed for warrants to buy up to 1.5 billion new shares at an exercise price of 197.775 pence per share, or 3 billion pounds in aggregate. The warrants are exercisable at any time for a five-year term from the date of issue. Barclays shares closed on Thursday at 205.25p.

The RCIs will pay an annual coupon of 14 percent until June 2019 and 3-month LIBOR plus 13.4 percent thereafter.

The RCI coupon is tax deductable and after tax the coupon will be about 10 percent.  Continued...

 
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