Stockholm - Swedish banking group SEB's share price was up some 7 per cent Wednesday after it detailed terms for its 15-billion- kronor (1.6 billion dollar) rights issue.

New shares were to sold for 10 kronor, offering a premium compared to Tuesday's closing price of 31 kronor. Owners of five old shares were to be offered 11 new shares.

The rights issue was announced a month ago when the group released its full-year 2008 report. SEB then said it would not pay a dividend. The two measures would raise the capital base to 19.5 billion kronor.

"We are expecting a continuation of subdued levels of economic activity, but with the measures taken we are prepared for much more severe economic outcomes," SEB chief executive Annika Falkengren said in a statement Wednesday.

SEB said it had secured funding from main shareholders including the investment group Investor AB for the rights issue.

SEB also has operations in the neighbouring Baltic states and Germany, said its net credit losses were 1.7 billion kronor, mainly over provisions in the Baltic countries.

The group has some 5 million private customers and 400,000 corporate customers. (dpa)