Bendigo and Adelaide Bank has increased the institutional placement it launched on Friday from A$120 million to $150 million. The bank will use the funds the acquire Bank of Cyprus Australia, a deal worth around $130 million. The excess will be used to strengthen its balance sheet.The bank also plans to offer a non-underwritten retail share purchase plan early in 2012. Citi analyst Wes Nason estimates the plan will raise a further $70 million.Bendigo and Adelaide Bank chief executive Mike Hirst said in a statement that institutional investor support for the placement was very strong.Following the acquisition and placement, the bank's tier 1 capital ratio will be about eight per cent, and then 8.24 per cent after the retail share purchase plan.Citi said the bank needed to raise capital, given "weak organic capital generation and a high dividend payout."It estimates that the capital-raising will dilute earnings per share by around 3.5 per cent.