Synovus Financial Corp. plans to raise $500 million to bolster capital.

The $35 billion-asset Columbus, Ga., company said after the markets closed Monday it plans to sell $350 million in common stock and conduct a debt exchange, among other things. The debt exchange would swap 50 million shares of common stock for notes due in 2013.

Synovus said the initiatives should increase its Tier 1 capital by $400 million and improve its tangible common equity to tangible assets ratio by an additional $100 million. The company also said it would pay a quarterly dividend of 1 cent a share Oct. 1 to shareholders of record on Sept. 17.

Earlier this month, Huntington Bancshares Inc. in Columbus, Ohio, said it would issue up to $150 million in common stock. Zions Bancorp. sold $250 million in stock in August.

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