Qatar's sovereign wealth fund sold the last of the warrants it owns in Barclays, notching up a gain of more than US$ 2.7 billion from the fundraising deal it struck with the bank four years ago. The warrants, which convert into shares, were sold to Deutsche Bank and Goldman Sachs Group .
Qatar Holding will keep its 6.7% stake in Barclays. The warrants have not yet been converted, but the owners can do so at 198 pence per share in the next year.
Conversion would bring in GBP 750 million for Barclays and lift its core Tier 1 capital ratio by about 20 bps.
The warrants were part of a fundraising by Barclays at the height of the financial crisis in 2008, when it raised billions of pounds from investors in Qatar and Abu Dhabi to avoid taking emergency funds from the UK government.
Qatar Holding was established in 2006. It is owned by the Qatar Investment Authority and its main subsidiaries include UK’s Harrods Group, Canary Wharf Group and Songbird Estates.
Mena Weekly Monitor – Bank Audi Research
27 November
