Barclays raises 7.3 billion while CoBa may tap state

By Steve Slater and Philipp Halstrick

LONDON/FRANKFURT (Reuters) - Barclays tapped Middle East investors for the bulk of its 7.3 billion pounds cash injection, while sources familiar with the situation said Commerzbank is interested in German state funds.

As banks continue to soak up capital to help them survive the global financial crisis, Barclays tapped Abu Dhabi and Qatar to provide most of its fresh cash and avoid accepting government support.

By contrast Germany's Commerzbank AG is interested in a capital injection under the Government's emergency bailout scheme, which could lead to Germany taking a stake in the country's second-biggest bank, sources said.

"Commerzbank is interested in all the instruments that the fund is offering -- also on recapitalisation," said one source.

Barclays said its fundraising through a range of capital instruments will allow it to rebuild capital to levels required by the UK regulator without taking taxpayer cash.

Barclays Chairman Marcus Agius said this approach would allow the bank to be in charge of its own destiny without the threat of government interference.

Commerzbank is also grappling with the fallout from the global crisis which spurred the German government to launch an emergency fund offering guarantees and capital to the country's banks.

Exposure to investments in Iceland as well as to collapsed Wall Street investment bank Lehman Brothers are compounding Commerzbank's difficulties, said one of the sources.