World Economy

Capital Increase

Capital IncreaseCapital Increase

Germany’s Commerzbank has announced it will strengthen its capital base by issuing a huge number of new shares meant to be bought up by institutional investors. No link to the Postbank sale, the lender hastened to add, DW reported. Commerzbank officials said the bank would place roughly 114 million new shares overnight with a view to achieving a capital increase of some 1.4b euros ($1.52b). In order to pocket the sum aimed for, institutional investors would have to be willing to pay at least 12.30 euros per share. Germany’s second-largest lender said the fresh money would serve to up the bank’s core capital ratio to above 10%, from 9.5% toward the end of March.