A massive bet on Barclays is living up to its rich billing for Qatar.
The complex 3.4 billion pound investment in the UK bank has earned a 19 percent internal rate of return for the sovereign fund, according to a Breakingviews calculation. That's pretty good, factoring in the huge risk of propping up a universal bank at the height of the financial crisis. But it will grate for Barclays shareholders who resented the deal in the first place.
To re-cap, Barclays issued a happy meal of capital instruments to the Qatar Investment Authority and
wholly-owned subsidiary Qatar Holding in 2008. First came a placing of shares in the summer. In October, there followed a mandatory convertible, a high-yield bond and a slug of warrants.
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