QIA pumps billions into Barclays

Grovelawn Financial News 26/06/2008

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Qatar takes almost 8 per cent of bank

The Qatar Investment Authority (QIA), a sovereign wealth fund set up three years ago, has taken almost an 8 per cent stake in Barclays. The bank said the QIA would spend £1.7 billion on a maximum 7.7 per cent stake as part of the bank's £4.5 billion capital raising. Another 2.3 per cent stake in Barclays will be bought with £533 million from an offshore investment vehicle called Challenger, set up by Qatar's Prime Minister. The profits for QIA come from a gasfield, the world's largest, it has $15 billion to spend on overseas financial institutions during the next two years.

The chief executive of Barclays said "The participation of players such as these is one of the most positive manifestations of globalisation. It's highly positive that there are pools of money that can be put to work in this way. That's very different to the world of five or ten years ago". Barclays will be issuing more than 1.5 billion new shares to raise the £4.5 billion needed to increase its capital ratios and win new business. Shareholders will have until 17th July to tender for shares.

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