U.S. Bancorp , the eighth-largest U.S. bank, said it sold $3.5 billion of stock and bonds as it tries to raise sufficient funds to repay a taxpayer bailout.

The Minneapolis-based lender sold $2.5 billion of stock, comprising 139 million shares at $18 each, or 2.7 percent below Monday's closing price.

The sale price is 12.4 percent below Friday's closing price; U.S. Bancorp had announced plans for the offering early Monday morning. Net proceeds from the offering total about $2.4 billion, the bank said. U.S. Bancorp said it may sell an additional 20.85 million shares to meet demand.

Separately, the bank sold $1 billion of five-year notes, which carry a 4.2 percent coupon and are not guaranteed by the Federal Deposit Insurance Corp.

U.S. Bancorp took $6.6 billion from the government's Troubled Asset Relief Program and is one of several large lenders hoping to soon pay back the funds.

The bank is one of 19 lenders that recently underwent federal stress tests to gauge their ability to weather a deep recession. It is one of nine that regulators deemed to have sufficient capital.

Goldman Sachs & Co and Morgan Stanley arranged both offerings.

U.S. Bancorp shares closed Monday at $18.50.

(Reporting by Jonathan Stempel; editing by John Wallace)