UPDATE 1-Bancolombia to issue up to 80 mln pfd shares

* Shareholders approve plan

* At current prices, share sale would raise $620 mln (Adds background)

BOGOTA, July 8 (Reuters) - Colombia's biggest bank, Bancolombia (CIB.N) BIC.CN, will issue up to 80 million preferred shares, bank President Jorge Londono said on Wednesday.

Shareholders unanimously approved the plan to issue the new shares during a meeting at Bancolombia's headquarters in Medellin.

Bancolombia currently has 278.12 million preferred shares in circulation. The bank has said it needs to raise money to fund its regional expansion plans.

At current Colombian market prices, the sale of 80 million preferred shares would raise $620 million.

Bancolombia's preferred shares rose 0.13 percent on the news of the share issuance approval, to $30.71, in New York trade. (Reporting by Javier Mozzo; editing by John Wallace)