UPDATE 2-Iberdrola says cash call to help debt reduction

* Cash call increases share capital by about 5 pct

* End-2009 net debt seen at 25-26 bln eur vs 32 bln now

* New shares priced at 5.30 euros each

* Shares close down 6.09 pct at 5.55 euros

(Adds CFO quotes)

MADRID, June 17 (Reuters) - Iberdrola's (IBE.MC: Quote, Profile, Research) 1.35 billion euro ($1.87 billion) share issue will help cut its net debt to 25-26 billion euros from 32 billion by the end of 2009, the Spanish utility's finance director said on Wednesday.

Iberdrola hiked capital earlier in the day by 5 percent, or 250 million shares priced at 5.30 euros each. The shares were placed with institutional investors including some shareholders, Jorge Sainz said during a conference call.

Iberdrola's shares closed down 6.09 percent at 5.55 euros on the news, but still traded at a premium to the new shares.

The CFO said Iberdrola expected to receive about 2.4 billion euros from state plans to pay electricity companies pending debt from shortfalls in fixed tariffs known as the tariff deficit.