Commerzbank has raised €626 million by exchanging hybrid bonds for new shares, The Wall Street Journal reports. Commerzbank has bought its preferred securities, a type of hybrid capital, from investors at prices above current trading but below par value.
The transaction will increase Commerzbank’s €6.5 billion share capital by up to 10%. Credit Suisse is managing the share sale. The sale is part of the German bank’s strategy to boost its capital ratios before strict regulatory requirements in the form of Basel III are introduced.
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