NordLB’s biggest shareholder, the German state of Lower Saxony, is injecting €600 million to raise the bank’s capital, Financial Times reports. Lower Saxony, which also owns a share in Volkswagen, will become majority owner of NordLB, which will repay the capital over time. The move will let NordLB pass the stress test conducted by the European Banking Authority. The recent contribution follows Lower Saxony’s decision to transform €1.1 billion in lower-quality capital into equity.
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