Two European banks announced plans to raise a combined €13.25 billion in fresh equity yesterday, taking to nearly €25 billion the total capital raising unveiled since the start of the year by institutions across the continent.

Commerzbank, Germany’s second-largest bank by assets, plans to raise €8.25 billion from investors through a placement of securities followed by a rights issue. The bank will also convert into equity €2.75 billion of existing non-equity instruments owned by the government. The transaction will leave the bank with a core tier one ratio of 8.8 per cent, with 8 points of that comprising equity. Intesa Sanpaolo, Italy’s largest retail bank by assets, will undertake a rights issue of as much as €5 billion as it seeks to shore up its core tier one ratio ahead of stress tests. – (Copyright The Financial Times Limited 2011)