Barclays to raise £5.8bn from shareholders to fill capital hole

Barclays is set to raise £5.8bn from shareholders to plug its capital shortfall.

The bank will issue a discounted rights issue to help close the gap with existing investors expected to be given the option to buy the securities first.

The bank’s announcement comes after banking regulator Prudential Regulation Authority (PRA) set a new “leverage ratio” target which requires lenders to hold Tier 1 capital equal to 3% of their total loan book.

Barclays said its adjusted second quarter pre-tax profit fell 17% to £3.6bn.

The £3.6bn adjusted pre-tax profit figure does not include the additional £1.35bn charge for Payment Protection Insurance misselling costs and £650m for interest rate hedging compensation.

Antony Jenkins, chief executive of Barclays, said: “The Board and I are aware of the implications of a rights issue for shareholders. We hope to balance this with reduced uncertainty in the outlook for Barclays and with enhancement of our dividend payout from 2014.”

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