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Commerzbank Sets Terms for 2.5 Billion Euro Capital Hike

Commerzbank
Hannelore Foerster | Bloomberg | Getty Images

Commerzbank is offering shares at a deep discount in a 2.5 billion euro ($3.3 billion) capital increase aimed at repaying funds it owes to the German government and insurer Allianz.

Germany's second biggest lender said on Tuesday it was offering 555.6 million new shares at a subscription price of 4.50 euros per share, a discount of 55 percent on Monday's closing price of 9.94 euros.

Current shareholders will be entitled to receive 20 new shares for every 21 shares they now hold.

The subscription period starts on Wednesday and runs until May 28.