Barclays seeking $11.8 bn cash injection

Barclays said the investment would enable it to meet new rules on banks’ capitalization ordered by Britain’s financial regulators.

“The Board believes that this maintains Barclays as a strong, independent and well capitalized bank,” said chairman Marcus Agius.

Britain’s government has injected an unprecedented 37 billion pounds (US$60 billion) into some of the country’s leading banks to avoid a full-scale collapse of the sector triggered by the global credit crisis. Barclays is trying to avoid relying on the government cash, which comes with strings attached.

In return for the rescue, the Royal Bank of Scotland Group PLC, Lloyds TSB Group PLC and HBOS PLC must cede major stakes to the government and halt cash bonuses for bank board members this year.

Barclays and HSBC have declined the state funds. Barclays shares were up more than 10 percent to 226 pence ($3.65) Friday morning on the London Stock Exchange.