Commerzbank €1.4 billion capital increase

Overview:

• Commerzbank raised €1.4 billion through a capital increase which strengthened the bank's Tier 1 capital ratio and diluted the German state's shareholding in the bank.
• Germany's second biggest lender sold 113.9 million new shares to institutional investors at €12.1 each through an accelerated bookbuilding.
• The transaction improved the bank's equity Tier 1 capital adequacy ratio by 0.7% and reduced the state's shareholding by 1.7%.
• Germany bailed out Commerzbank in 2008 during the peak of the financial crisis. 

Ben Naylor - Regional Editor