LONDON (Alliance News) - Barclays PLC Monday said it would contest a GBP50 million fine given to it by UK regulators over capital raising agreements it made with Qatar in 2008.
The agreements were not disclosed in announcements or public documents relating to the capital raisings in June and November 2008, and the UK Financial Conduct Authority has described Barclays as having acted "recklessly" for not disclosing the deal.
Barclays revealed the fine in its prospectus for a GBP5.8 billion rights issue Monday. It also revealed that the FCA had sent it a warning notice September 13.
Barclays said the same agreements are under investigation by US authorities and the Serious Fraud Office.
In the prospectus, Barclays also revised the date it thinks its return on equity will exceed the cost of equity to some point in 2016, from its previous target of the end of 2015.
However, it improved its outlook for its tier 1 capital ratio, and now expects a fully loaded ratio greater than 10.5% in early 2015 as opposed to a weaker transitional ratio in excess of 10.5% by the end of 2015.
It also plans on increasing its planned dividend payout ratio to 40-50% from 2014, as opposed to the original target of 30% by the end of 2015.
Barclays announced the rights issue after another UK regulator, the Prudential Regulation Authority, found that Barclays had a GBP12.8 billion gap in its balance sheet.
Barclays shares were Monday quoted at 306.4 pence, up 4.8 pence, or 1.6%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Barclays (BARC)