By Daisy Ku

LONDON, July 14 (Reuters) - More cash is being raised by SPACs -- acquisition vehicles that show their greatest strength in a bear market -- easing some of the pain bankers feel through a lack of flotations in Europe.

Total issuance by Special Purpose Acquisition Companies, created solely to make buyouts with money raised in an initial public offering (IPO), is set to reach $1.4 billion this week in Europe, about four times last year's volume.

Germany1 is expected to raise 275 million euros ($432 million) in Europe's next SPAC listing on the Euronext Amsterdam this Friday, as investment bankers are pushing hard for the acceptance for such blank-cheque companies in Europe.

"There is no doubt that this year is on track, in terms of volume and potentially in number, to be a watershed in the development of the SPAC structure," one other banker active in SPACs said, asking not to be identified.

SPACs are usually set up by investors with a proven track record in acquisitions, offering management at takeover targets a way to sell out without having to go to virtually closed IPO markets -- and investors fat returns.

Deutsche Bank (DBKGn.DE: Quote, Profile, Research) started bookbuilding for Germany1 on June 30, despite the cancellation of European Energy Assets' 70 million euro IPO around the same time.

There would be no change in the issue volume, a source familiar with the matter said.

So far, 11 SPACs have listed in Europe, with Liberty International Acquisition Co LIACU.AS raising 600 million euros ($946.3 million) on Euronext Amsterdam (NYX.PA: Quote, Profile, Research)(NYX.N: Quote, Profile, Research) in the world's third largest ever SPAC IPO in February.