Barclays is seeking to raise as much as £4bn ($8bn) from outside investors in efforts to boost its balance sheet without having to launch a rights issue that could lead to aggressive writedowns. The UK bank is planning to offer stakes to large investors, including several sovereign wealth funds, in which shares would be purchased at a premium to current prices. Existing shareholders would be able to participate in the offering on similar terms, although terms that dilute their holdings by 5% or more will require their approval. The move comes as financial services firms prepare to roll out their Q2 earnings, with further asset writedowns likely. Barclays has been under pressure to boost its capital reserves. The bank’s core Tier One equity ratio is among Europe’s lowest at about 5%.
