Bendigo and Adelaide Bank yesterday said it will sell $75 million in converting preference shares. The bank set a preliminary pricing range on the securities at between 4.5 percentage points and 5.0 percentage points over the bank bill rate. The bank opted for a fixed rate on the preference shares.Sale of preference shares to top up tier one capital ratios is a path followed by several banks this year. ANZ sold $1 billion in securities at 2.5 percentage points over the bill rate early last month.Suncorp is paying a floating rate of 3.2 per cent over the bill rate (terms it would not get now) and Westpac is paying a floating rate 2.4 per cent over bills on its stapled preferred securities. Macquarie Group opted for a fixed rate issue with its convertible preferred securities at a spread of 3.5 per cent over the bill rate at the time of issue.Bendigo Bank, with a lower credit rating than its peers, and with equity and debt market conditions generally adverse for banks, has had to offer a higher margin.The bank said that, based on accounts at June 2008, the additional capital would lift its tier one capital ratio to 7.9 per cent from 7.5 per cent.