Barclays 'to get cash infusion from major Japanese bank'
infomatique | June 21, 2008 at 05:10 pmby
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The UK banking sector certainly appears to have been stuck with a lot of sub-prime debt problems.
Barclays Plc may be close to securing a 100bn yen (€594m) capital injection from Japan’s Sumitomo Mitsui Banking Corp. as part of the bank’s efforts to weather the impact of the global credit crisis, according to media reports.
A deal between the two companies is in the “final stage” and is likely to include an agreement to co-operate in banking services in Asia as well as asset management, Kyodo News agency and others reported.
In addition to the main banking arm of Sumitomo Mitsui Financial Group, Barclays is in talks with Asian and Middle Eastern banks and sovereign wealth funds, including Temasek Holdings of Singapore and China Development Bank, to raise more than £4bn (€5bn) through a private placement of new shares, according to other news reports.
Barclays, Britain’s third-biggest bank, reported writedowns of £2.6bn (€3.3bn) through the first quarter of this year related to the sub-prime lending crisis in the United States.