Barclays to make available additional liquidity to support LDI counterparties
Following the Bank of England’s market notice of 10 October 2022 regarding the launch of the Temporary Expanded Collateral Repo Facility, Barclays PLC confirms that Barclays Bank PLC will provide access to additional liquidity for liability driven investment funds (“LDI counterparties”) against eligible collateral. An LDI counterparty’s ability to access the liquidity from Barclays will be open until 10 November 2022 and, if so utilised, will be available for the LDI counterparty’s ongoing use thereafter, in each case subject to the availability of the Temporary Expanded Collateral Repo Facility and certain conditions.
Eligible collateral includes non-financial corporate bonds issued within the UK, US and EEA. For all collateral, which will be subject to concentration limits per LDI counterparty, the maximum tenor is 30 years and the minimum rating is Baa3/BBB-. Barclays and each LDI counterparty will act on a bilateral, arm’s length basis as principals under a repurchase agreement on commercial terms to be agreed including size, price, margining and termination provisions.
Barclays’ provision of this liquidity to LDI counterparties is not expected to have a material impact on the Group’s CET1, leverage or liquidity coverage ratios.
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For further information, please contact:
Investor Relations Media Relations
Chris Manners Jon Tracey
+44 (0) 20 7773 2136 +44 (0) 20 7116 4755
Barclays is a British universal bank. We are diversified by business, by different types of customer and client, and geography. Our businesses include consumer banking and payments operations around the world, as well as a top-tier, full service, global corporate and investment bank, all of which are supported by our service company which provides technology, operations and functional services across the Barclays Group. For further information about Barclays, please visit our website home.barclays.
This announcement contains forward-looking statements within the meaning of Section 21E of the U.S. Securities Exchange Act of 1934, as amended, and Section 27A of the U.S. Securities Act of 1933, as amended, with respect to BPLC, BBPLC and the Group. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as ‘may’, ‘will’, ‘seek’, ‘continue’, ‘aim’, ‘anticipate’, ‘target’, ‘projected’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, ‘achieve’ or other words of similar meaning. These statements are based on the current beliefs and expectations of Barclays’ management and are subject to significant risks and uncertainties. Actual outcomes may differ materially from those expressed in the forward-looking statements. Factors that could impact Barclays’ future financial condition and performance are identified in BPLC’s and BBPLC’s respective filings with the SEC (including, without limitation, BPLC’s and BBPLC’s respective Annual Report on Form 20-F for the financial year ended 31 December 2021, as amended, and Interim Results Announcement for the six months ended 30 June 2022), which are available on the SEC’s website at www.sec.gov.
Subject to Barclays’ obligations under the applicable laws and regulations of any relevant jurisdiction, (including, without limitation, the UK and the U.S.), in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.