Part-nationalised bank Lloyds has raised 170 million pounds ($269.53 million) through a new share issue, it said on Wednesday, raising capital as it looks to restart coupon payments on certain bonds.

Lloyds, which is 40 percent owned by the British government after a state bailout in 2008, said it had issued 479.3 million new shares at a subscription price of 35.47 pence per share.

The company said at the time of its annual results last month that it planned to restart coupon payments on certain hybrid capital securities this year, and estimated that these payments would amount to some 170 million pounds.

Lloyds said the share issue would have a neutral effect on its capital position, and analysts said the move had been expected given its intention to restart those coupon payments.

Lloyds' share issue also comes after the bank drew down 11.4 billion pounds from the European Central Bank's second offering of cheap three-year funds last month. The bank has a core Tier 1 capital ratio of 10.8 percent.

Lloyds shares were up 0.6 percent at 36.50 pence in early morning trade - still well below the average 63 pence price at which the British taxpayer acquired its stake in the bank.

Lloyds reported a 3.5 billion pound loss for 2011 in February, with its earnings hurt by a 3.2 billion pound hit to compensate customers for the mis-selling of payment protection insurance, which typically covers loan repayments if customers fall ill or lose their jobs.

($1 = 0.6307 pounds)

(Reporting by Sudip Kar-Gupta; Editing by Myles Neligan and Helen Massy-Beresford)