Cases & Deals

German Federal Agency for Financial Market Stabilization completes €2.5 billion (US$3.2 billion) rights offering of Commerzbank

Client(s) Bundesanstalt für Finanzmarktstabilisierung (FMSA)

Jones Day advised the German Federal Agency for Financial Market Stabilization, which manages the German Financial Market Stabilization Fund ("SoFFin"), in connection with the €2.5 billion (US$3.2 billion) rights offering of Commerzbank, Germany's second-largest bank.

In support of the transaction, SoFFin exercised its subscription rights in full and, in proportion to its 25 percent stake in Commerzbank, contributed silent participations for shares. At the beginning of the subscription period, a consortium of banks under the lead of Deutsche Bank, Citi and HSBC placed Commerzbank shares held by SoFFin with a total volume of about €625 million. SoFFin thereby participated in the capital increase without investing new capital, and its holdings in Commerzbank decreased to about 17 percent.

In addition to capital markets matters, Jones Day also advised on banking regulatory aspects, including notifications or liaising with regulatory authorities in more than 50 countries around the globe.