WARSAW, Sept 28 (Reuters) - Poland's financial and markets regulator KNF on Monday cleared the $1.8 billion rights issue by the country's largest bank PKO BP, paving the way for Warsaw's largest share offer in five years.
PKO, in which Poland's treasury holds a 51 percent stake, plans to issue up to 300 million shares to raise as much as 5 billion zlotys ($1.76 billion) to help fund new loans.
State-owned BGK is expected to take up Poland's share of the new issue, with the rest targeted at remaining PKO shareholders, who will be able to subscribe on Oct 6.
KNF and the Warsaw bourse said the prospectus, which will include the issue price and its size, would be released on Thursday.
The rights issue will boost the number of PKO shares by as much as 30 percent. The lender is valued at $12.3 billion. (Reporting by Chris Borowski; Editing by Dan Lalor) ($1 = 2.849 zlotys)