Colombia's second-largest bank, Banco de Bogota, will issue up to 1.3 billion pesos ($677 million) in stock on Wednesday to raise cash to pay for BBVA Panama, which it announced it was buying in July, it said on Wednesday.

Existing investors in the bank will be given preference to acquire the new shares priced at 63,000 pesos ($32.83) each, the bank said in a press release.

"One hundred percent of the resources obtained in the issue will be directed toward furthering operations and business, including acquisitions and to capitalize financial institutions" belonging to the same group, a press release said.

Banco de Bogota CEO Alejandro Figueroa said most of the funds will be used to finalize the purchase of BBVA Panama, the most recent in a series of acquisitions by the group, which is part of Colombia's largest financial conglomerate, Grupo Aval. Owned by magnate Luis Carlos Sarmiento, it has several other banks and financial institutions in the Andean nation.

Grupo Aval last week approved the release of 2.4 billion pesos in stocks, at a date still to be confirmed.

Banco de Bogota stocks fell 4.9 percent to 65,020 pesos on the Colombian stock market at the close of trading on Tuesday.