Barclays is on the verge of securing an almost $1 billion investment from a Japanese bank, according to media reports.
Sumitomo Mitsui Financial Group may be about to invest around £470 million, Reuters has reported.
Shares in Barclays were suspended earlier today on the Tokyo stock exchange amid rumours Sumitomo is poised to step in to assist the bank.
The Nikkei business newspaper reported that Sumitomo would take a small stake in Barclays when it issues billions of pounds of new shares. Reuters put the stake at around two per cent.
Barclays has indicated it is keen to raise capital by approaching sovereign wealth funds and other major investors, rather than with a rights issue.
The bank was hit hard by the subprime crisis, announcing flat profits for last year. Earlier this week it announced plans to sell shares to new and existing investors.
Barclays said it is looking to raise £4 billion from major and existing investors.
The Financial Times reported Singapore's Temasek Holdings and the Qatar Investment Authority are among the sovereign wealth funds considering investing in the bank.
The fundraising could begin as early as next week the FT said.
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