Barclays Offers CoCos as BOE Says Banks Lack $38 Billion Capital
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Barclays Plc is marketing a sale of contingent convertible notes as the Bank of England said U.K. lenders face a capital shortfall of at least 25 billion pounds ($38 billion).
Britain’s second-largest bank by assets is arranging investor meetings for an issue of so-called CoCos, which convert to equity or are written off once an issuer’s capital ratios fall below a preset level. Barclays said yesterday it wants to redeem as much as $1 billion of subordinated bonds that can also count as capital.