UPDATE 1-Pioneer gains $540 mln in funding from HK's Baring Private Equity

* Funding is more than Pioneer's market value

* Shares drop 4 pct in morning trade (Adds share decline and market capitalisation)

TOKYO, Sept 12 (Reuters) - Japan's struggling Pioneer Corp on Wednesday said it had secured up to 60 billion yen ($540 million) in funding from Hong Kong-based fund manager Baring Private Equity Asia (BPEA).

The consumer electronics maker said in a statement it would issue around 50 billion to 60 billion yen worth of stock to BPEA by the end of December. It will receive 25 billion yen in a bridge loan on Sept. 18 which would be later paid back when the stock is issued.

Shares in Pioneer dropped more than 4 percent in morning trade. At the close of trade on Tuesday, the company had a market capitalisation of around 49 billion yen ($440 million).

Pioneer, which produces products ranging from audio systems and speakers for home and vehicle use to computer storage systems, is facing a repayment deadline for bank loans this month.

The Nikkei business daily reported on Tuesday that it has been strapped for cash as its automotive GPS business struggles. ($1 = 111.5100 yen) (Reporting by Ran Kim and Naomi Tajitsu; Editing by Edwina Gibbs)