Bank of Queensland is in the market for capital, yesterday announcing plans to sell $150 million in convertible notes through a private placement.The bank will sell the notes, which qualify as "lower tier two" capital in three tranches of $60 million, $45 million and $45 million.The notes are convertible after 12 months for the first tranche, after 17 months for the second tranche and after 23 months for the third tranche.BOQ said the notes will pay a coupon of 400 basis points over the 30-day bank bill rate. Deutsche Bank is managing the placement.Bank of Queensland had capital of $2.06 billion at February 2010, including $346 million in similar securities classed as "lower tier two".Capital raisings of any kind from banks have been pretty rare over the first half of 2010, a reflection of the busy program of share sales forced on them in 2008 and 2009 by the credit shock.