(Adds placement price)
BERLIN, Oct 13 (Reuters) - German plastics group Covestro is seeking to raise 450 million euros ($528 million) through a capital increase placed with investors, one of the bookrunners on the deal said on Tuesday.
The fundraising will partly refinance Covestro’s 1.6 billion euro purchase of Dutch peer DSM’s Resins and Functional Materials business last month, in a bet on a rebound of the global economy from a coronavirus slump.
Placement price of around 10.2 million shares - equivalent to 5.5% of Covestro’s equity - was between 43.85 euros equivalent to gross proceeds of 447 million euros before deduction of commissions and expenses.
The company’s shares earlier closed down 1.1% at 44.25 euros in Frankfurt.
The bookrunners on the deal are Credit Suisse, Bank of America Corp and Citi.
$1 = 0.8523 euros Reporting by Douglas Busvine; Additional reporting by Sabahatjahan Contractor in Bengaluru; Editing by Jan Harvey and Lisa Shumaker
Our Standards: The Thomson Reuters Trust Principles.