Washington Trust Bancorp Inc. in Westerly, R.I., is raising $50 million of capital to expand its commercial and wealth management businesses.

The $2.7 billion-asset parent of Washington Trust Co. said late Thursday that it would issue 2.5 million shares at $20 each in a private placement with select institutional investors.

The price is a 24% discount from the stock's closing price the day the issuance was announced.

Washington Trust Bancorp said it expects to close the issuance Tuesday.

By Friday afternoon its shares had climbed 4.6% from Thursday's close, to $25.05.

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