Berlin - The German government will take a 25 per cent cent stake plus one share in the country's second biggest bank, Commerzbank, the bank announced Thursday.

Commerzbank said the move is in return for a fresh injection of capital by the state rescue fund Soffin, amounting to 10 billion euros (13.56 billion dollars).

Commerzbank, which is poised to take over rival Dresdner Bank at the end of January, has already received 8.2 billion euros in capital and guarantees of 15 billion euros from Soffin.

Analysts said Commerzbank was apparently in need of the extra cash because of higher-than-anticipated write-offs by Dresdner, which is owned by insurance giant Allianz.

Earlier Thursday, Commerzbank became the first German lender to issue a bond backed by state guarantees. The bank set the size of the bond at 5 billion euros. (dpa)