Tags: Barclays | Buy | Back | Debt

Barclays to Buy Back $3.9 Billion of Debt to Bolster Capital

Monday, 05 Dec 2011 01:36 PM


Barclays Plc, the U.K.’s second-largest bank by assets, offered to buy back as much as 2.5 billion pounds ($3.9 billion) of capital notes to improve the quality of the capital it holds.

The lender will offer to buy back the Tier 1 securities for a discount of as much as 30 percent to face value, London-based Barclays said in a statement today.

Regulators are pressing banks to boost capital, or ability to absorb losses, before taxpayers have to step in. Bank of England Governor Mervyn King urged last week lenders to step up efforts to bolster their defenses against the euro area’s debt turmoil, which now looks like a “systemic crisis.”

The “offers will enable the issuer to enhance further the quality of its capital structure through the reduction of non- Basel III compliant tier one capital and subsequent generation of additional core tier one capital,” Barclays said in the statement.

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