Commerzbank to Boost Capital With Shares for Hybrids Swap

Commerzbank AG, Germany’s second-largest lender, will boost its financial strength by asking investors to swap hybrid capital instruments trading below face value for new shares.

The measures could boost core Tier 1 capital by more than 1 billion euros ($1.33 billion), the lender said. Concern about the supply of new equity drove the shares lower, even as Commerzbank posted earnings that beat analysts’ estimates today.