Bendigo and Adelaide Bank to raise $200m

Bendigo and Adelaide Bank is tapping investors for $200 million through an issue of convertible preference shares.

Bendigo and Adelaide Bank have announced their intention to raise $200 million dollars. (AAP)

Bendigo and Adelaide Bank hopes to raise $200 million through an issue of hybrid securities to investors.

The bank will issue new convertible preference shares, known as CPS2, priced at $100 each.

If certain conditions are met, the bank will could either convert the CPS2 into ordinary shares, redeem or resell them in November 2020.

"CPS2 will be issued to support the bank's balance sheet growth and to ensure the bank continues to have strong regulatory capital levels," chairman Robert Johanson said on Wednesday.

The offer opens on September 11.