CORRECTED-Banco Popolare sets terms for 1.5 bln euro rights issue

Thu Mar 27, 2014 3:06pm EDT

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(Changes "less than half" to "little more than half" in lead)

MILAN, March 27 (Reuters) - Banco Popolare said on Thursday it would price new shares in a planned 1.5 billion euro ($2 billion) capital increase at 9 euros each, little more than half the stock's closing price in the session.

The banks said the price set for the new shares represented a 30.7 percent discount on the share price when excluding the value of subscription rights.

The so-called Theoretical Ex Right Price (TERP) was 12.99 euros a share based on Wednesday's closing price, it said.

Banco Popolare will offer 17 new shares every 18 shares owned. Shareholders can exercise their right to buy the new shares between March 31 and April 17.

Shares in Banco Popolare closed up 0.5 percent at 16.83 euros each on Thursday. ($1 = 0.7278 Euros) (Reporting by Valentina Za)