Munich - Hypo Real Estate (HRE), the German finance company which nearly collapsed last month, applied Wednesday for additional equity funds from the German government's new bail-out plan.

Germany's first big casualty of the current crisis, HRE won 50 billion euros in guarantees earlier this month from the government and German banks.

It said at its head office in Munich it had now applied for a cash injection of 15 billion euros (19 billion dollars) from new federal fund.

It is the first German commercial bank to see help from Soffin, a new government agency created by parliament on October 17.

Previously, three state-owned banks had said they would seek help from Soffin.

Investors welcomed the application by HRE. its shares are among the top 30 stocks in the DAX index. HRE rose 11 per cent to 5.42 euros on the Frankfurt Stock Exchange, clawing back some of the 80-per-cent loss it has suffered in recent weeks.

Soffin has 70 billion euros at its disposal to both inject equity into banks and to acquire toxic assets from them.

HRE, a mortgage lender to commercial developers and public bodies, said the injection was needed to meet short-term funding needs.

"We are expecting a prompt decision," it added.

Germany's commercial banks have been criticized for their reluctance to lose face and beg for funds from Soffin, which has set up its offices at the Bundesbank central bank in Frankfurt. (dpa)