Corporate | 14 December 2011 15:31
Commerzbank AG / Key word(s): Miscellaneous
14.12.2011 / 15:31
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Commerzbank completes measure to further strengthen its capital structure
- Commerzbank purchases hybrid capital instruments (Trust Preferred
Securities) from investors with an aggregate principal amount of EUR 1.27
billion
- Transaction results in an increase of the Bank's Core Tier 1 capital of
more than EUR 700 million
Commerzbank AG today has successfully completed a measure to further
strengthen its capital structure. Overall, investors in selected hybrid
equity instruments (Trust Preferred Securities) issued by companies of the
Commerzbank Group have offered to sell EUR 1.27 billion equivalent in
aggregate principal amount of these instruments to Commerzbank, against
cash consideration. The Bank has decided to not apply pro-ration and
accepted all of the offered Trust Preferred Securities and will therefore
spend total funds of approximately EUR 643 million to purchase Trust
Preferred Securities. The tender offer period started on December 5, 2011
and ended yesterday, December 13, 2011, as envisaged. Joint Dealer Managers
are Commerzbank, Credit Suisse and J. P. Morgan.
The transaction marks another step in optimising Commerzbank's capital
structure in light of the transition to the new regulatory requirements of
Basel III. The transaction will have a one-off positive effect of more than
EUR 700 million on the consolidated results of the Bank pursuant to IFRS
and will result in a respective increase of Core Tier 1 capital.
Commerzbank has purchased the following aggregate principal amount of each
Trust Preferred Security issued by companies of the Commerzbank Group
included in the tender offer:
Description of the TPS / Issuer / ISIN /
Liquidation Preference Amount of the TPS accepted for purchase* /
Liquidation Preference Amount of the TPS remaining outstanding**
EUR 1,000,000,000 Noncumulative Trust Preferred Securities /
Commerzbank Capital Funding Trust I / DE000A0GPYR7 /
EUR 455,150,000 / EUR 189,550,000
GBP 800,000,000 Noncumulative Trust Preferred Securities /
Commerzbank Capital Funding Trust II / XS0248611047 /
GBP 401,150,000 / GBP 115,600,000
EUR 600,000,000 Noncumulative Trust Preferred Securities /
Eurohypo Capital Funding Trust I / XS0169058012 / EUR 198,628,000 /
EUR 305,034,000
EUR 300,000,000 Noncumulative Trust Preferred Securities /
Commerzbank Capital Funding Trust III / DE000CK45783 /
EUR 70,262,000 / EUR 186,423,000
EUR 300,000,000 Noncumulative Trust Preferred Securities /
Eurohypo Capital Funding Trust II / DE000A0DZJZ7 / EUR 67,950,000 /
EUR 152,146,000
* No accrued interest will be payable. Tendered securities were accepted
without application of a Pro-ration Factor.
** Means the Trust Preferred Securities remaining outstanding and not held
within the Commerzbank Group.
The aggregate nominal amount of Trust Preferred Securities included in the
tender offer, which is still outstanding and not held within the
Commerzbank Group amounts to EUR 970 million equivalent after the
transaction.
Press contact:
Reiner Rossmann +49 69 136 46646
Maximilian Bicker +49 69 136 28696
*****
About Commerzbank
Commerzbank is a leading bank for private and corporate customers in
Germany. With the segments Private Customers, Mittelstandsbank, Corporates
& Markets, Central & Eastern Europe as well as Asset Based Finance, the
Bank offers its customers an attractive product portfolio, and is a strong
partner for the export-oriented SME sector in Germany and worldwide. With a
future total of some 1,200 branches, Commerzbank has one of the densest
networks of branches among German private banks. It has above 60 sites in
more than 50 countries and serves more than 14 million private clients as
well as 1 million business and corporate clients worldwide. In 2010, it
posted gross revenues of EUR 12.7 billion with some 59,000 employees.
*****
Disclaimer
This release contains statements concerning the expected future business of
Commerzbank, efficiency gains and expected synergies, expected growth
prospects and other opportunities for an increase in value of the company
as well as expected future net income per share, restructuring costs and
other financial developments and information. These forward-looking
statements are based on the management's current expectations, estimates
and projections. They are subject to a number of assumptions and involve
known and unknown risks, uncertainties and other factors that may cause
actual results and developments to differ materially from any future
results and developments expressed or implied by such forward-looking
statements. Commerzbank has no obligation to periodically update or release
any revisions to the forward-looking statements contained in this release
to reflect events or circumstances after the date of this release.
End of Corporate News
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Language: English
Company: Commerzbank AG
Kaiserplatz
60261 Frankfurt am Main
Germany
Phone: +49 (069) 136 20
Fax: -
E-mail: ir@commerzbank.com
Internet: www.commerzbank.de
ISIN: DE0008032004
WKN: 803200
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, Hannover, München, SIX, Stuttgart;
Terminbörse EUREX; London
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