The Telegraph reports that rights issue will allow existing investors to buy one new share for every four they currently own at a price of 185p, a discount of 40% to they bank's closing share price yesterday.
Barclays will also issue £2BN of bonds that are turned into shares or wiped out if the bank gets into trouble.
Additionally in its six months results for the first half of this year, Barclays has set aside £1.35BN against further PPI claims, bringing its total compensation fund to just under £4BN, and a further £650M for interest rate swap redress, increasing its provision to £1.5BN.
Barclays chief executive Antony Jenkins is quoted by the BBC, in a dig at the PRA, warns that plugging the hole will have a negative impact on the economy:
"It means Barclays will provide fewer financial transactions to big companies, life insurers and pension funds, inter alia, to help those giant institutions reduce their risks. And to be clear that will represent a tightening of credit for those customers, so there may be a negative economic impact."Barclays share price is currently down 7% on the day.