Barclays to raise 6.5 bn pound from investors

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Banking giant Barclays Plc on Monday said it will raise over 6.5 billion pound from investors to shore up its capital base and not call upon the government for emergency funding.

The bank's board has decided to raise in excess of 6.5 billion pound of Tier-I capital after taking into account the new higher capital targets set by regulator Financial Services Authority (FSA) for all UK banks, Barclays Plc said in a filing to the London Stock Exchange.

"Given the strength of Barclay's well diversified business and the existing capital base, the Board expects that the additional capital will be raised from investors without calling on the government funding, which has been offered to UK banks," the filing stated.

This would result in a pro-forma Tier-1 capital ratio as on June 30, 2008 of over 11 per cent, it added.

Tier-I capital refers to the core capital of a bank, including equity capital and disclosed reserves, and shows its capital adequacy.

In the view of the need to maximise capital resources in the current economic climate, the Board of Barclays has decided not to recommend a final dividend for 2008.

This dividend, amounting to 2 billion pound, would otherwise have been payable in April, 2009.