Bendigo and Adelaide Bank have increased its capital raising venture to $150 million due to strong demand from institutional investors.

The regional lender had aimed to raise $120 million through a placement of new shares to institutional shareholders, to fund its acquisition of Bank of Cyprus Australia.

Bendigo said on Monday the value of the placement had increased to $150 million, with the strong demand a demonstration of investor support for the acquisition.

A non-underwritten share purchase plan will be offered to retail shareholders in the near future, Bendigo said.