The UK bank (Baa2/BBB/A) began marketing its 10.5 non-call 5.5 tier two at 400bp area over Gilts.
Barclays was the sole bookrunner for the deal, which was expected to carry a small size of just £500m.
By 12.30pm in London, the bank was able to use £1.2bn of demand to steer investors towards a tighter spread of 375bp-380bp.
Final terms were not available in time for publication.
Financial institutions have now sold debt instruments of every stripe and colour as markets have gotten back to their feet during the coronavirus crisis.
But funding conditions have proven more challenging this week, with credit and equity products selling off heavily between Tuesday and Thursday.
Barclays waited for the market to stabilise on Friday before coming forward with its new capital transaction.
The FTSE 100 was 1.4% higher on its previous close by mid morning, while the iTraxx subordinated financials index was 2bp tighter.
There was about 40bp-50bp of new issue premium baked into the UK issuer’s starting spread of 400bp over Gilts.
But the bank's guidance range indicated that it could land with a smaller premium of about 25bp-30bp.
This was wider than the concession offered by Royal Bank of Scotland Group (Baa2/BBB/A) last week.
RBS reopened the sterling bank capital market with the sale of a £1bn 10.25 year non-call five tier two on May 6.
The deal was launched at a spread of 355bp over Gilts, which markets participants said had included a premium of about 5bp.
2020 calls
The Prudential Regulation Authority has set the bank a total capital requirement of 17.3% of risk-weighted assets, which includes a 3.3% bucket for tier two.
At the end of the first quarter it had tier two equal to 3.8% of its RWAs, or £12.4bn.
However, nearly a third of those instruments are legacy bonds that will lose their regulatory value from 2022.
Barclays also has £1.1bn of tier two securities that it will be able to redeem this year, as well as a further £1.4bn of debt that is either callable or set to mature.