About 118.1 million new shares of Commerzbank AG (CBK.XE) were placed with institutional investors in an accelerated bookbuilding Thursday, investment bank Credit Suisse Group (CS) said.

The placement price was fixed at EUR5.30 a share, enabling Commerzbank to raise around EUR625.93 million in new capital in a transaction that involved exchanging hybrid bonds for new shares.

The transaction will take some EUR1 billion worth of hybrid debt issued by Commerzbank off the market and replace it with 10% minus one share of equity capital, one person familiar with the matter said earlier Thursday.

People familiar with the matter said the transaction will result in an estimated capital gain of at least EUR300 million from buying the hybrid bonds back at a discount.

Credit Suisse said the issue was "multiple times oversubscribed."

Settlement of the transaction is scheduled to take place Jan. 26.

In this context, Allianz SE (ALV.XE) agreed to provide Credit Suisse with a stock lending facility of existing Commerzbank shares sourced from Allianz's holding. On the basis of this agreement, investors were able to borrow Commerzbank shares from Credit Suisse until the delivery of the new shares from the placement. Allianz still holds 10.3% in Commerzbank following the sale of Dresdner Bank.

A syndicate of Credit Suisse Group (CS), Citigroup Inc. (C), Goldman Sachs Group Inc. (GS) and UBS AG (UBS.VX) placed the shares with institutional investors.

-By Ulrike Dauer, Dow Jones Newswires; +49 69 29725 500; ulrike.dauer@dowjones.com