Barclays to raise $8.9 billion

Barclays PLC plans to raise $8.9 billion through the issuance of new shares as part of an effort to shore up its balance sheet after it wrote down $3.35 billion in bad loans last year. The London-based bank said that it will raise the new capital by selling new shares to investors such as the Qatar Investment Authority of Doha, which will invest $3.46 billion. Sumitomo Mitsui Banking Corp. of Tokyo will invest $982.9 million, the China Development Bank of Beijing will invest $268 million, and Temasek Holdings (Private) Ltd., a Singapore government fund, will invest $393.3 million, and other firms will participate in the offer. Additionally, Barclays acknowledged that other investors and institutional shareholders have already agreed to invest up to $2.64 billion through the issue. “Through our capital raising today, we strengthen our capital base and give ourselves additional resources to pursue our strategy of growth through earnings diversification,” said John Varley, group chief executive of Barclays, according to a statement. Last week, a report hinted that Barclays was to receive an infusion from Sumitomo and could receive investments from Temasek and China Development Bank. Shares of the Barclays American depositary receipt rose $1.24 per share, or 5%, to $25.94 in morning trading.