* Commerzbank concludes capital increase
* Proceeds used to pay back part of state bailout
* 1.6 mln used to pay back Soffin, 750 mln for Allianz
(Adds detail on distribution of proceeds)
FRANKFURT, May 29 Commerzbank said it
had completed a 2.5 billion euro ($3.2 billion) capital
increase, in a move to repay part of a bailout given to
Germany's second-largest lender in 2009.
The bank sold 556 million new shares to repay funds it owes
to the German state and insurer Allianz. Germany's
bank rescue fund Soffin will receive 1.6 billion euros and
Allianz will get 750 million euros.
Commerzbank said 99.7 percent of the subscription rights
were exercised with shares sold at 4.50 euros each. The
subscription period ended on May 28.
After the share placement and the capital increase, Soffin's
stake in the lender will be reduced to roughly 17 percent from
In a two-stage bail-out, the German government took a 25
percent stake in Commerzbank and also granted 16.4 billion euros
in debt-equity hybrid instruments known as a silent
Commerzbank has sought to entice investors despite warning
that 2013 would be a year of transition for the bank, and
posting a first quarter net loss of 94 million euros weighed
down by a 493 million euro restructuring charge.
Earlier this week, state-owned Spanish lender Bankia
saw its stock price tumble after issuing billions of
new shares, with little hope of a quick recovery amid tough
($1 = 0.7779 euros)
(Reporting by Jonathan Gould and Edward Taylor; Editing by