seeking to restore after a massive trading scandal

Societe Generale, seeking to restore its status as a top-tier bank after a massive trading scandal, said Tuesday it raised €5.5 billion ($8.44 billion) in new capital through a share offering.

The bank said Tuesday that the share issue was oversubscribed by 184 percent, with total subscription orders of €10.2 billion ($15.65 billion). That was seen as a sign of investor confidence in the scandal-plagued bank that could help it resist predators.

The funds help plug a gap in SocGen's finances after it lost nearly €5 billion (more than $7 billion) unwinding what the bank says were unauthorized bets by trader Jerome Kerviel and after €2.6 billion ($3.8 billion) in write-downs linked to the U.S. subprime mortgage crisis. The bank plans to use the new capital to boost its financial standing and fund future growth in countries including Russia, Brazil, India and central and eastern Europe.

"The success seen in this operation will allow Societe Generale to pursue its development," in sectors and regions with growth potential, the bank said in a statement. SocGen said its tier 1 ratio, a measure of financial strength, was restored to 8 percent. Don't Miss SocGen posts $4.91B net loss for 4Q Bosses 'condoned' SocGen trader Existing shareholders had preferential subscription rights, offered new shares for €47.50 ($68.94), and were able to buy one new SocGen share for each four shares held.

The bank's shares have plunged in recent months, and closed Monday at €64.08 ($98.30). New shareholders had to purchase four rights to buy one new share, bringing the theoretical cost of SocGen shares after the capital increase to €71 ($108.91).

(Published by CNN News March 11, 2008)