BARCLAYS hired another nine investment banks yesterday to sell its shares, adding to the four already announced last week to bring a total of 13 on board for its multi-billion pound rights issue.
The advisers will share a fee pot of around £130m for working on the £5.8bn issue. The shares are being issued as the regulator wants Barclays to improve its capital position.
If only the initial four banks – Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank and Citigroup – were running the book, they would face the risk of being left with almost £1.5bn of shares each if the sale performed poorly.
Hiring more banks means each institution is less exposed, as well as giving Barclays access to more markets.
The nine institutions are ABN Amro, Banco Santander, BNP Paribas, ING Bank, JP Morgan, Morgan Stanley, SMBC Nikko Capital Markets and RBC Capital Markets.
ADVISERS NINE NEW UNDERWRITERS AND BOOKRUNNERS FOR BARCLAYS’ RIGHTS ISSUE
Nine more banks have joined the syndicate selling Barclays’ new shares, opening access to more markets. Banks like ABN Amro, whose team is led by Chris van Schuppen, and ING, with Leo Greve, open more access to European markets. BNP Paribas, whose Ben Canning is working on the deal, gives a greater global reach, while SMBC Nikko is based in London but has strong ties to Japanese and Asian markets. Tim Wallace