Barclays: It sold its 7.4% stake in South African Absa

Barclays sold a 7.4% stake in South African bank Absa for 26 526m ($ 687m) as it seeks to boost its capital.

Barclays, which said it would use the proceeds for general corporate purposes, said the placement would increase the underlying capital ratio by about 10 basis points, resulting in a loss of 43 43m.

The move comes at a time when Barclays’s capital levels are under control as authorities warned British banks earlier this month to boost their capital ratings.

The Russian invasion of Ukraine has further shaken confidence in the level of capital of European banks, as the resulting economic slowdown and delays in central bank interest rate hikes affect the prospect of higher dividends.

It also marks a further step in the British bank’s exit from Africa, after announcing the sale of Absa in 2016, after a 90-year presence on the continent.