Commerzbank places $1 billion of tier 2 bonds
FRANKFURT, Sept 13
FRANKFURT, Sept 13 (Reuters) - Commerzbank said it placed $1 billion worth of subordinated bonds on Friday, as a way to strengthen its balance sheet for new European bank safety rules.
The Frankfurt-based lender said the placement of a Tier 2 issuance served to strengthen its overall capital structure ahead of the new European Union capital requirements (CRD IV) which are applicable from January 1, 2014 onwards.
More than two thirds of the bonds were placed with institutional investors in the United States and Canada. The benchmark issuance has a maturity of ten years and a coupon of 8.125 percent. (Reporting by Edward Taylor)
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