MADRID, March 1 (Reuters) - Medium-sized Spanish bank Sabadell launched a 913 million euro ($1.2 billion) rights issue on Thursday to help fund the purchase of rescued regional savings bank Caja de Ahorros del Mediterraneo (CAM).
Sabadell plans to issue 692 million new ordinary shares at a ratio of three new shares for every seven outstanding shares, the bank said.
It had said in December it would aim to raise 1 billion euros via a capital hike to pay for the acquisition.
The issue price of the new shares is 1.32 euros, a discount of 36.7 percent on the theoretical ex-warrant price based on last Friday's share price, the bank said.
Deutsche Bank and Nomura are acting as joint global co-ordinators and joint bookrunners. Citi, Credit Suisse and JP Morgan are joint bookrunners, the bank said.
A source close to the operation said banks would be marketing the deal to investors for the next two weeks.
After the takeover, the merged bank will be Spain's fifth-largest lender. ($1 = 0.7476 euros) (Reporting by Sonya Dowsett; Additional reporting by Victoria Howley in London; Editing by Will Waterman)