Norddeutsche Landesbank Girozentrale will get as much as 2 billion euros ($2.65 billion) in guarantees from its shareholders to help the lender reach a core-tier 1 capital ratio of about 10 percent, Handelsblatt reported.
The German states of Lower Saxony and Saxony-Anhalt will provide the guarantees, which need to be authorized by European Union regulators, the newspaper said in a preview of an article for tomorrow’s edition, citing Lower Saxony Finance Minister Hartmut Moellring.
Lower Saxony may also convert about 400 million euros of bonds into core capital and the state of Bremen, another shareholder, may convert 480 million euros of so-called silent participations, a form of non-voting equity, in a NordLB unit, Handelsblatt said.
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