Abu Dhabi sells Barclays shares at 267p

Abu Dhabi government-owned International Petroleum Investment Company (IPIC) on Tuesday sold about 3.5 billion pounds ($5.74 billion) of shares in Barclays at 267 pence each, traders said on Tuesday.

The sale price represents a 16 percent discount from Monday's close of 316.25p.

Barclays declined to comment.

The sale will reap a profit of about 1.5 billion pounds for the Abu Dhabi investor just seven months after it bought into the British bank when it raised funds privately rather than take taxpayer funds.

The fundraising angered existing shareholders, however, who said the Middle East investors were offered attractive terms.

IPIC, an investment vehicle of the Abu Dhabi royal family, said late on Monday it intended to dispose of the shares in Barclays for which its mandatorily convertible notes (MCNs) are exchangeable. Credit Suisse is handling the sale.

The MCNs can convert into about 1.3 billion shares at 153p per share before the end of this month. That values the holding at about 3.5 billion pounds and indicates IPIC will make a 1.5 billion pound profit after Barclays shares have soared more than five-fold in the last three months.

IPIC said it was also considering selling 1.25 billion pounds of another capital instrument it bought at the same time — reserve capital instruments that pay annual interest of 14 percent.