BANKING giant Barclays today said Middle Eastern investors were pumping up to £7.3bn into the business.
The cash injection from Qatari investors and the Abu Dhabi royal family comes as the bank looks to avoid calling on taxpayer funds to strengthen finances weakened by the credit crunch.
The funding move follows an earlier £4.5bn cash call by the bank in June.
Qatar Holding and Challenger, led by the Qatari royal family – are already investors in the group.
Barclays has also brought on board Sheikh Mansour Bin Zayed Al Nahyan, a member of the Abu Dhabi royal family, as a substantial new investor.
The Middle Eastern trio could end up owning almost a third of the bank when the warrants and notes issued by the bank are converted into ordinary shares.
Barclays said the funding move would allow it to meet the tougher requirements of the Financial Services Authority to help banks withstand financial turmoil.
Not using public funds to shore up the business also means that Barclays will be able to pay dividends to its shareholders.
Chief executive John Varley said: “Today’s capital raising provides certainty and speed of execution.”
In a trading update, Barclays added that third quarter pre-tax profits were “slightly ahead” of the previous year.
Barclays, which bought the US investment banking arm of collapsed Lehman Brothers last month, said credit market write-downs of £1.2bn had been mostly offset by gains elsewhere.
Mr Varley said: “The financial market environment has continued to be challenging.
“Against this backdrop, we have stayed close to our customers and clients, managed our risks carefully, and taken advantage of opportunities to progress our strategy.”
