* TD to offer 9 mln preferred shares at C$25/shr

* Boosts offering by 2 million shares on strong demand

* TD shares up 1.8 pct (Updates amount of gross proceeds. Adds analyst comments)

TORONTO, Jan 5 (Reuters) - Toronto-Dominion Bank (TD.TO: Quote, Profile, Research) boosted the amount of a new preferred share offering by more than 25 percent on Monday, citing strong interest just hours after it first unveiled the issue.

TD, Canada's second-biggest bank, said it planned to raise about C$225 million (($189 million) in a preferred share offering to bolster its capital position.

TD said the offering would consist of 9 million noncumulative five-year preferred shares with a face value of C$25 per share. That is up from the seven million shares that it said earlier in the day it would offer .

The series will yield 6.25 percent annually until April 30, 2014.

The bank also granted its underwriters an option to purchase an additional 3 million shares. If the option is exercised, the maximum gross proceeds of the share issue are expected to be C$300 million.

Mario Mendonca, an analyst at Genuity Capital Markets, said it was necessary for TD to raise the capital given its "light" Tier 1 capital ratio in the "low nines" compared with its peers.