Barclays Plc is in the final stages of executing a plan to boost its capital levels that will likely involve the bank issuing billions of pounds worth of new securities, the Wall Street Journal reported, citing people familiar with the matter.
The bank is likely to unveil its plans to sell convertible bonds and, potentially, new common stock when it announces its second-quarter results on Tuesday, WSJ said.
The bank is looking at filling a capital deficit of 7 billion pounds, recently identified by U.K. regulators, and to put to rest investors' doubts about its capital position, the Journal said. ()
The plans are still subject to change, partly because Barclays executives are still in talks with officials at the U.K.'s Prudential Regulation Authority (PRA) to make sure its proposed actions will satisfy the agency's new capital rules, WSJ reported.
The PRA in June surprised investors by telling banks they needed to have a 3 percent leverage ratio, and said Barclays fell short with a ratio of only 2.5 percent after adjustments. The agency gave Barclays until the end of July to say how they would improve.
A Barclays spokeswoman declined to comment on the report, citing the bank's policy of not commenting on speculation.