Credit Mutuel, which represents a 17 percent share of the French market, will raise the funds from customers and from its network of regional banks, the report said, citing an internal document.

The bank reportedly wants to pay down debt after a string of acquisitions and investments in recent years, including a strategic alliance with Spain's Banco Popular (>> Banco Popular Espanol SA).

Credit Mutuel was unavailable for comment.

(Reporting by Matthieu Protard; Editing by Lionel Laurent and Natalie Huet)

Stocks treated in this article : CIC, Banco Popular Espanol SA