Synovus Financial Corp, the Columbus, Georgia-based financial services company has informed that it has received preliminary approval to sell roughly $973 million in preferred shares and related warrants to the Treasury as part of the government's Capital Purchase Program.

The Capital Purchase Program, part of the U. S. Treasury Troubled Asset Relief Program (TARP), is designed to encourage U. S. financial institutions to build capital and increase the flow of financing to U. S. businesses and consumers.

Synovus intends to use the proceeds to strengthen its capital base, "enhance" lending capabilities and position Synovus banks to capitalize on competitive growth opportunities in local markets.

However, the final approval is subject to fulfillment of certain conditions, including approval by Synovus’ shareholders of amendments to the company’s articles of incorporation and bylaws to allow Synovus to issue preferred stock, as well as the execution of definitive agreements.

Shares of Synovus closed on Friday at NYSE, up $ 0.07 cent or 1 per cent to $7.89. During the past 52 weeks, shares have ranged between $6.48 and $7.59.