• Germany edition
 
Commerzbank makes €2.5 billion capital hike
Photo: DPA

Commerzbank makes €2.5 billion capital hike

Published: 13 Mar 2013 12:39 GMT+01:00
Updated: 13 Mar 2013 12:39 GMT+01:00

"Commerzbank is planning an early repayment in full" of about €1.6 billion in so-called "silent participations" from the German bank bailout fund SoFFin and a further €750 million from insurance giant Allianz, the bank said in a statement.

Silent participations are a form of debt under which creditors agree to forego voting rights in the company.

In order to raise the funds needed for repayment, Commerzbank had decided to undertake a capital increase, which it would ask shareholders to approve at the annual general meeting of Commerzbank, originally set for May 22 but now being brought forward to April 19.

Once the operation has been completed, SoFFin's shareholding in Commerzbank was expected to decrease from 25 percent plus one share to below 20 percent, the bank said.

In 2008 and 2009, the state invested around €16.4 billion in Commerzbank as it struggled to integrate the distressed Dresdner Bank.

Commerzbank has already repaid most of the money and "with the announced repayment of the remaining €1.6 billion, the silent participations of the Federal Republic will be repaid in full," Commerzbank said.

"With the complete repayment of the silent participations of SoFFin we are repaying ahead of schedule all components of the state support over which we have influence," said chief executive Martin Blessing.

"The support of politicians and the taxpayer was very important for us during the financial crisis. For us the repayment of the silent participations and the reduction in the Federal Republic's stake marks the beginning of the end of the Federal Republic's engagement in Commerzbank," Blessing said.

On the Frankfurt stock exchange, Commerzbank shares were the biggest losers in midday trading however, shedding 8.51 percent in a slightly softer overall market.

AFP/jcw

The Local (news@thelocal.de)

Don't miss...X
Left Right

Your comments about this article

12:18 March 15, 2013 by ichbines
WOW! Deeply impressed.
Today's headlines
German hospitals ready for Ebola patients
Hamburg's UKE isolation ward is ready to take patients. Photo: DPA

German hospitals ready for Ebola patients

Germany's high-tech isolation wards remained on alert on Friday, ready to receive Ebola patients should they be required to. German airports seemed less prepared for the potential dangers of the viral epidemic, however. READ  

Two die in Bremen plane crash
The fire caused by the crash. Photo: DPA

Two die in Bremen plane crash

UPDATE: Two men died on Friday afternoon when a plane crashed in Bremen, causing a fire and a series of explosions in a warehouse near the city's airport. READ  

Merkel's party mutinies over tax cuts
Merkel in Münster last year at a meeting of her party's workers' wing. Photo: DPA

Merkel's party mutinies over tax cuts

Chancellor Angela Merkel faced a rebellion from within her own party on Friday after an unlikely coalition formed in favour of tax cuts for workers on lower incomes. READ  

Expat Dispatches
'Look at those German shanty towns!'
Kleingärten in Leipzig. Photo: DPA

'Look at those German shanty towns!'

Visitors to Germany can sometimes be confused by the country's love of allotments in cities, known as a Kleingarten. Teacher and blogger Kathleen Ralf tells us what it's all about. READ  

Lightning rods further delay Berlin Airport
Closed until further notice: Berlin's troubled new airport. Photo: DPA

Lightning rods further delay Berlin Airport

Too few lightning rods and an undersized emergency generator have prevented part of Berlin's new airport from opening. Safety inspectors refused to sign off on the airport's north pier, thwarting progress on the massively delayed construction project. READ  

Two thirds of Berlin's tourist flats now illegal
Photo: DPA

Two thirds of Berlin's tourist flats now illegal

Two thirds of Berlin's 12,000 tourist apartments advertised on sites such as Airbnb were being run illegally from Friday following a law change, leaving hosts open to potential punishment. READ  

Lost goat halts Munich Airport trains
Fritzi underneath the train. Photo: Freiwillige Feuerwehr Unterschließheim/DPA

Lost goat halts Munich Airport trains

A lost pet goat called Fritzi halted trains to Munich Airport and had to be rescued from the tracks after suffering a concussion. READ  

Germany crowned U19 European Champions
Photo: EPA/Tibor Illyes HUNGARY OUT

Germany crowned U19 European Champions

Germany’s U19 football team added to a glorious summer of sport for the country by winning the European Championships in Budapest on Thursday night. READ  

World War I anniversary
100 years ago, Germans celebrated war's outbreak
August 1914. German soldiers march off to war in France. Photo: DPA

100 years ago, Germans celebrated war's outbreak

A hundred years ago on Friday Germany declared war on Russia and was preparing for an attack on France in the hope that Britain would stay neutral. Four years on, famine was ravaging the country and two million soldiers had been killed on the battlefield. READ  

Environment Agency urges fast fracking ban
Photo: DPA

Environment Agency urges fast fracking ban

Germany's Federal Environment Agency (UBA) is encouraging lawmakers to hurry up and ban fracking in all but name, saying the process is too dangerous to even consider allowing. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: DPA
Society
Meet the man allowed to grow his own cannabis
Photo: DPA
Society
Your lottery numbers are 9, 10, 11, 12 and 13...
Photo: DPA
Gallery
Five reasons to visit Oktoberfest (and five not to)
Photo: DPA
Society
Huge Bavarian crop circle puzzles crowds
Photo: DPA
Analysis & Opinion
Have Your Say: Should Germany legalize cannabis?
Photo: DPA
Gallery
Hamburg harbour lit up in blue
Business & Money
JobTalk: 'Application process is failing'
Photo: DPA
Society
This man wants to give all of us €12,000 a year
Photo: DPA
Education
Top university switches master's courses to English
Travel
Plans unveiled for bike trail along former Iron Curtain
Photo: Europeana.de 1914 - 1918
Gallery
A German soldier's life behind WWI lines
Education
Raising the bar for law & business in Germany
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
Photo: DPA
Features
The Local List Archive - Your guide to all things German
National
Share news tips with The Local Germany
Sponsored Article
Bilingual school turning education on its head
Sponsored Article
CurrencyFair: Why it pays when making overseas transfers
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,276
jobs available
Toytown Germany
Germany's English-speaking crowd