Barclays _ No Government Funding
Published / Last Updated on 12/10/2008
Barclays - No Government Funding
Barclays has announced that it will not require government funding as it has alternative sources of funding to raise £10bn.
It will be issuing preference shares by Christmas to raise initial capita of £3bn. Preference shares confer no direct ownership of the Bank but do take priority on closure or wind up and of course income from profits.
In addition Barclays will also be issuing more normal ordinary shares to also raise capital next year in the order of £4bn. These ordinary shares along with the preference shares will be offered to shareholders first.
One existing major shareholder is said to be looking to inject an additional £1bn in shares. We suggest this could even be the China Development Bank, effectively the Chinese Government, who took a major shareholding position back in July 2007, although this is mere speculation.
There will also be no dividend share declared for profits this year.
Useful links:
Request expert financial advice now
Purchase guidance on financial planning in the Money Shop
Useful links:
