Barclays linked to Japanese bank tie-up

Barclays is close to sealing a £470m (€596m) capital injection from Japan’s third largest bank as it seeks to boost its funding, according to reports today.

The banking giant is said to be in talks with Sumitomo Mitsui Financial Group over a potential 100 billion yen deal, which would reportedly see the Japanese firm take a 2% or 3% stake in Barclays.

Barclays said earlier this week it planned to sell shares to new and existing shareholders in an effort to shore up its balance sheet without resorting to a full blown discounted rights issue.

Shares leapt 12% at one stage on Monday amid reports that Barclays is looking to raise up to £4bn (€5bn) from overseas investors, offering shares at a premium to the current share price.