Commerzbank EUR5.3 Billion Rights Issue

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.

 

  1 comment for “Commerzbank EUR5.3 Billion Rights Issue

  1. SHP
    June 9, 2011 at 5:35 pm

    Commerzbank has reported that is was successful in raising the full EUR5.3 billion from its rights issue. This cash is to be used to help pay back the financial aid it received from the German government.

Leave a Reply

Your email address will not be published. Required fields are marked *