UPDATE 1-REC raises $695 million in rights issue

* Issues 170.45 million shares at 26.50 crowns

* Rights issue fully underwritten

OSLO, June 23 (Reuters) - Norwegian solar material supplier Renewable Energy Corp (REC) (REC.OL) raised 4.5 billion Norwegian crowns ($695 million) in a rights issue on Tuesday to shore up its finances.

REC said it issued 170.45 million new shares at 26.50 crowns each. The issue is part of REC's 7.5-8.5 billion crown debt and equity refinancing plan.

"The subscription price corresponds to a discount of approximately 43 percent to the theoretical ex-rights price of 46.21 crowns based on REC's closing share price on June 22," REC said in a statement.

REC said the rights issue was fully underwritten by its main shareholders, Orkla/Elkem (ORK.OL) and Hafslund (HNA.OL), and other large shareholders, as well as by DnB NOR Markets, ABN AMRO Bank [ABNNV.UL], BNP Paribas [FORTHK.UL] and Nordea Markets.

The subscription period will run from June 29 to July 13.

On Monday, REC said most of its customers on long-term contracts were looking to agree lower wafer prices while module prices could fall 30 percent this year. [ID:nLJ597819]

The global downturn has hit the whole solar industry as well as REC, which is suffering from overcapacity, tight credit conditions and a lack of project funding. (Reporting by Aasa Christine Stoltz; Editing by Dan Lalor) ($1 = 6.474 Norwegian crowns)