UPDATE 1-Australia's Nufarm says to raise about A$300 mln

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SYDNEY, May 15 (Reuters) - Nufarm Ltd (NUF.AX), an Australian farm chemicals group, is selling new shares to raise about A$300 million ($227 million) to repay part of its debt, joining a raft of firms tapping equity markets to overcome tough credit markets.

The new shares are being sold at A$11.25 each, a 10 percent discount to Nufarm's last traded price.

Nufarm also reaffirmed its fiscal 2009 earnings forecasts, saying it would achieve A$220 million in operating net profit after tax.

Nufarm halted trading in its shares to undertake the placement.

Many Australian companies have rushed to raise fresh equity capital, encouraged by recent rally in stock markets. Companies launched about $4 billion worth of share sales this week alone, taking this year's tally to about $18 billion.

Bankers and analysts expect more issues to hit the market over the next few months. For a related story [ID:nSYD460772].

Nufarm's Managing Director, Doug Rathbone, is also selling part of his stake to raise about A$20 million, the company said. After the sale, Rathbone will own 11.3 percent. ($1=A$1.32) (Reporting by Denny Thomas)