Commerzbank May Raise €10B In Capital

Germany’s second largest bank,Commerzbank, is planning to raise nearly €10 billion to help repay government aid,金融时报》reports. The Frankfurt-based bank, which needed €18.2 billion of state capital during the financial crisis and to complete its takeover ofDresdner Bank, may sell equity-like securities followed by a rights issue.

The bank is seeking to repay most of the €16.2 billion of its silent participation notes. The fundraising may be arranged by a group of banks, includingCitigroup,DeutscheBankandJP Morgan. The government is expected to convert some of its hybrid debt into equity as part of any deal to maintain its ownership of over 25% of Commerzbank’s shares.

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