HSH Nordbank to strengthen capital base by Eu2bn

HSH Nordbank confirmed plans this week to strengthen its capital base by Eu2bn, more than half of which will be fresh capital. The state bank, the only German one part owned by a foreign investor (JC Flowers holds a 27% stake), will strengthen its capital base through converting into common stock all its silent partnerships, totalling Eu685m, together with preferred shares of Eu57m. At the same time, JC Flowers will inject Eu300m to prevent dilution of its holding. The bank said in April that it had suffered writedowns of Eu1.3bn on debt products in 2007, which led to a 66% drop in profit for the year. Read more about HSH’s plans in EuroWeek on Friday.