PHILADELPHIA - Sovereign Bancorp Inc. (NYSE: SOV), parent company of Sovereign Bank, says it raised about $1.9 billion from previously announced equity and debt offerings.

Sovereign intends to use the net proceeds for general corporate and banking purposes, including repaying Federal Home Loan Bank borrowings.

“By proactively taking action to raise additional capital we feel we are well equipped to handle any further deterioration in the economy,” said Joseph P. Campanelli, Sovereign’s president and CEO. “We are pleased that our common stock offering was significantly oversubscribed and the interest in the offering from investors in the U.S. and in Europe underscores their confidence in the future of our company.”

Sovereign issued 179.69 million shares of common stock at a purchase price of $8 per share for net proceeds of about $1.39 billion, after the underwriting discount and offering expenses.

The number of shares sold includes 23.44 million shares sold pursuant to the exercise in full of the underwriter’s over-allotment option.

In addition, the bank issued $500 million of fixed-rate subordinated notes. The notes have a coupon of 8.75 percent and will mature as of May 30, 2018. Lehman Brothers Inc. acted as the sole book-running manager for the common stock and debt offering, and Sandler O'Neill & Partners L.P. acted as co-manager of the debt offering.

With the additional capital, Sovereign said, its capital ratios at both the holding company and the bank now exceed “well-capitalized” levels as defined by the regulatory agencies for commercial banks and thrifts.

“We continue to believe strongly in the fundamentals of our business, particularly related to our focus on accelerating the performance of our retail franchise,” Campanelli said. “Our footprint in the Northeast U.S. has been much less affected by the housing and economic downturn than in other parts of the country, giving Sovereign an important competitive advantage in the current environment.”

Sovereign Bancorp Inc. (NYSE: SOV), the parent company of Sovereign Bank, is a $90 billion financial institution with nearly 800 community banking offices, more than 2,000 ATMs and about 12,000 employees mostly in the Northeast. For additional information, visit www.sovereignbank.com.