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Barclays Sets Plans to Raise Capital

"Barclays PLC is putting the finishing touches on a plan to boost its capital levels that will likely involve the bank issuing billions of pounds worth of new securities, according to people familiar with the matter.

"When it announces its second-quarter results on Tuesday, Barclays is likely to unveil plans to sell convertible bonds and, potentially, new common stock, both of which would boost the bank's cushions to absorb future losses, these people said. The goal is to fill a £7 billion ($10.78 billion) capital deficit that U.K. regulators recently identified at the bank and to erase investor worries about the adequacy of Barclays's capital.

"The plans remain in flux and are still subject to change, partly because Barclays executives are still in talks with officials at the U.K.'s Prudential Regulation Authority to make sure the bank's proposed actions will satisfy the agency's new capital rules, these people said. The timing of any issuances is uncertain."

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