Frankfurt-based Commerzbank is to pay back the remainder of the state aid it received during the global financial crisis.
Frankfurt-based Commerzbank is to pay back the remainder of the state aid it received during the global financial crisis.
The bank said it plans to pay the German bank rescue fund Soffin a total of €1.63 bn, the balance of the bailout money it was granted in 2009.
Commerzbank, which announced last June that it was winding up its commercial real estate lending business, will pay off the state aid with the help of a €2.5 bn capital increase. Soffin is to participate in the capital increase, but without investing new money, Commerzbank said.
Following the transaction, Soffin is expected to cut its stake in Commerzbank from 25% to below 20%.
Commerzbank’s former real estate lending arm Eurohypo has been renamed Hypothekenbank Frankfurt, with its European loan portfolio to be dismantled, marking the closure of the commercial real estate finance business.
