MOSCOW (Reuters) - Russia's second-largest bank VTB said on Monday investors have subscribed for the entirely of its 102.5 billion rouble ($3.3 billion) share offering, with bids from sovereign wealth funds in Norway, Qatar and Azerbaijan.

VTB is raising the funds to bolster its capital and to allow it to increase lending capacity. The bank's supervisory board on Friday approved the issue of 2.5 trillion new shares at 4.1 kopecks each, a discount of around 9 percent to the price at which the stock ended the week.

The bank said that Norges Bank Investment Management, Qatar Holding and State Oil Fund of Azerbaijan are among investors.

Existing investors TPG, the U.S. buyout giant, and Chinese sovereign fund CIC were not listed among investors in the offering.

VTB added that following the deal its Tier 1 capital adequacy ratio will increase to approximately 11.9 percent from 10.3 percent as of Dec 31, which would be higher than its closest rival Sberbank .

The government, which is not expected to participate in the offer, will see its stake diluted to around 60.9 percent after the issue.

(Reporting by Katya Golubkova; Editing by Megan Davies and Douglas Busvine)

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