Business & Finance

Commerzbank buys back securities to boost capital

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"As another step in its capital management, Commerzbank is offering investors in selected hybrid equity instruments -- so-called 'trust preferred securities' issued by companies of the Commerzbank group -- to repurchase these instruments against cash consideration," the bank said in a statement.

The transaction will mark "another step in optimising our capital structure in light of the transition to the new regulatory requirements," it said.

It will have a "one-off positive effect" on earnings and "will result in an increase of Core Tier 1 capital," it added.

Investors will have from Monday until December 13 to accept the offer.

Copyright AFP (Agence France-Presse), 2011