Hapoalim raises 1.7 bln shekels in notes offering

TEL AVIV, June 30 (Reuters) - Bank Hapoalim (POLI.TA), Israel's second largest bank, said on Tuesday it raised 1.7 billion shekels ($434 million) in an offering of capital notes.

It sold 1.3 billion shekels to institutional investors and the rest to the general public.

In total it has raised 3.3 billion shekels in June as part of a plan to boost its capital adequacy ratio.

Hapoalim said the eight-year notes will be linked to the consumer price index and pay interest of 5.65 percent.

Israel's banking regulators have said banks must reach a capital adequacy ratio of 12 percent by the end of 2009. Hapoalim's ratio was 11.27 percent at the end of March.

Since the beginning of the year, Hapoalim has raised over 4 billion shekels. (Reporting by Tova Cohen; Editing by Dan Lalor) ($1 = 3.92 shekels)