• Germany's news in English

Commerzbank mulls state-backed bond issue

AFP · 6 Jan 2009, 17:17

Published: 06 Jan 2009 17:17 GMT+01:00

Facebook Twitter Google+ reddit

"Commerzbank is considering a bond issue" backed by government guarantees, she said, before adding that the bank had decided "neither the moment, nor the volume nor the duration," of such an operation.

The Financial Times Deutschland newspaper reported that bonds could be issued for a total value of between €1 billion and €2 billion ($1.34 billion $2.68 billion) and that they could be launched this week.

The report said the funds raised might be used to finance the purchase of Dresdner Bank from the insurance group Allianz but a financial source told AFP that any bond issue would be "independent" of the Dresdner acquisition.

Worth €5.1 billion, the takeover of Dresdner would be finalised "in January 2009," the bank spokeswoman said.

Commerzbank has applied for state loan guarantees worth a total €15 billion and a state capital injection of €8.2 billion to help it cope with the global financial crisis. Since it applied for the state aid, "the situation has seriously deteriorated," the newspaper quoted a source close to the matter as saying.

Besides Commerzbank, regional state-owned German banks and another private groups have also obtained state guarantees for possible bond issues.

HSH Nordbank plans such an operation next week and southern peer BayernLB is preparing a similar operation, a spokesman told AFP on Tuesday. The now private business lender IKB is also mulling a bond issue backed by state guarantees, the FTD said.

Story continues below…

Commerzbank and Allianz are also negotiating together with the German banking sector stability fund Soffin for public aid for Dresdner Bank, which was hit hard by the international financial crisis, the business daily Handelsblatt said on Tuesday. A Soffin spokesperson declined to comment when contacted by AFP.

In late Frankfurt trade, shares in Commerzbank were down 2.29 percent to €6.40 while the DAX index of leading shares showed a gain of 0.97 percent overall. Allianz was off by 4.90 percent at €73.16.

Facebook Twitter Google+ reddit

Today's headlines
Munich taxi driver in hospital after attack by British tourists
Photo: DPA

A taxi driver had to be hospitalized in Munich on Monday evening after three British tourists refused to pay their fare and then attacked him.

German police carry out nationwide anti-terror raids
Police outside a building in Jena during raids on Tuesday. Photo: DPA

Police forces in five German states carried out raids on Tuesday morning with the aim of tackling the financing of terror groups, police in Thuringia have reported.

The Local List
10 ways German completely messes up your English
Photo: DPA

So you've mastered German, but now it's time to learn English all over again.

Iconic German church being eroded away by human urine
Ulm Minster towering over the rest Ulm surrounding the Danube. Photo: Pixabay

It will now cost you €100 to spend a penny. That’s if you get caught choosing to pee against the world-famous Ulm Minster.

German small arms ammo exports grow ten-fold
Photo: DPA

The government has come in for criticism after new figures revealed that Germany exported ten times the quantity of small arms ammunition in the first half of 2016 as in the same period last year.

14-year-old stabs 'creepy clown' in prank gone wrong
File photo: DPA.

A 16-year-old in Berlin decided he wanted to scare some friends, but his plot backfired in a violent way.

Four Ku Klux Klan groups active in Germany, says govt
An American member of the KKK at a gathering in Georgia. Photo: EPA.

The German government estimates that there are four Ku Klux Klan (KKK) groups currently active in the country, according to a report by the Süddeutsche Zeitung (SZ) on Tuesday.

Ex-chancellor Schröder to mediate in supermarket row
Gerhard Schröder. Photo: DPA

Can Gerhard Schröder bring an end to the Kaiser's Tengelmann saga?

Outrage over ruling on 'brutal' gang rape of teen girl
The now convicted suspects, sitting in court in Hamburg. Photo: DPA.

A 14-year-old girl was gang-raped and left partially clothed and unconscious in freezing temperatures. Now prosecutors are appealing the sentences for the young men found guilty, most of whom will not set foot in jail.

Dozens of Turkish diplomats apply for asylum in Germany
Demonstrators holding a giant Turkish flag protest against the attempted coup in Istanbul in July. Photo: DPA.

Since the failed putsch attempt in Turkey in July, Germany has received 35 asylum applications from people with Turkish diplomatic passports, the Interior Ministry confirmed on Wednesday.

Germany's 10 most weird and wonderful landmarks
Sponsored Article
Last chance to vote absentee in the US elections
10 things you never knew about socialist East Germany
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
Eleven famous Germans with surnames that'll make your sides split
The best ways to get a visa as an American in Germany
jobs available
Toytown Germany
Germany's English-speaking crowd