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Commerzbank set to raise fresh capital

COMMERZBANK shareholders have approved capital-raising plans by the bank that could see it begin to repay a state aid package from the German government and provide it with more cash.

At the bank’s annual general meeting yesterday, shareholders gave Commerzbank the green light to raise the funds through issuing fresh shares or convertible bonds.

Chief executive officer Martin Blessing said that the measures would help it to repay some of the €18.2bn ($22.45bn) in state aid handed down by the German government at the time it took over Dresdner Bank.

Blessing also sought to ease shareholder fears over the bank’s exposure to Greece and said that he didn’t expect the debt-ridden country to default on its debt repayments.

Commerzbank has more than €3bn in Greek debt on its books, making it one of the most exposed in the Eurozone.

Shareholders also approved the bank’s executive remuneration plans that will see a further cap on pay.

The remuneration plans received a majority vote, except for the German government which abstained.