FRANKFURT, July 7 (Reuters) - DZ Bank, the unlisted wholesale bank serving Germany’s large cooperative banking sector, completed a 1.5-billion-euro ($2 billion) capital increase to reinforce its equity reserves ahead of a European Central Bank stress test to conclude later this year.
The bank will lift its core equity tier one ratio, a measure of capital strength watched by regulators including the ECB, to over 10 percent with the new capital, versus 8.9 percent reported at the end of 2013, the bank said in a statement on Monday.
DZ Bank placed around 187 million new shares with its cooperative bank owners at 7.90 euros per share, raising 1.477 billion euros, the bank said.
DZ, which provides wholesale, clearing and product services to around 900 cooperative banks, competes with the likes of Deutsche Bank and Commerzbank for commercial and retail clients.
$1 = 0.7331 Euros Reporting by Thomas Atkins; editing by Jason Neely