Commerzbank is hoping to raise EUR5.3 billion by means of a rights issue. Commerzbank plans to offer 2.44 billion new shares at a price of EUR2.18 each. This represents a 45 percent discount.
Shareholders will be able to subscribe to 10 new shares for every 11 held. The sub-rights will be trading from the 24th of May until 6th of June.
Commerzbank Rights Issue Terms and Dates
- Ex-date: 24/05/11
- Pay date: 07/07/11
- Ratio: 10 new for 11 held
- Call Price: EUR2.18
The purpose of the rights issue is to raise capital to help repay outstanding loans. Currently Commerzbank is around EUR14.3 billion in debt.
Commerzbank bought out Dresdner Bank 2 weeks before Lehman Bros collapsed. It received EUR18 billion bail out from th German government but still has huge debts to clear.