Barclays Plc is looking to issue contingent convertible bonds (CoCos) in order to save money and still meet the three percent leverage ratio imposed by Prudential Regulations Authority, owned by the Bank of England.

The proposal to sell CoCos was okayed by the stockholders during the general meeting last April 25. The CoCos will automatically be converted into shares if the equity ratio plunges under the cap.

Barclays is under pressure to either sell its assets worth GBP 240 billion or come up with GBP 7 billion in equity. The company has already trimmed down its staff after letting go of 3,700 workers.

Gary Greenwood, an analyst at Shore Capital in England, said CoCos are inherently attractive because they are cheaper and easier than finding equity. However, he said there's a downside to this decision as it provides little motivation "for equity holders to put money into a struggling bank."