Commerzbank, Germany's second biggest lender, announced Tuesday it raised 1.4 billion euros ($1.5 billion) in a capital increase in a move to boost its financial buffers.

"Commerzbank today placed 113.9 million new shares with institutional investors by way of a so-called accelerated bookbuilding process," the group said in a statement.

"The placement price was fixed at 12.10 euros per share. The gross issue proceeds amount to a total of 1.4 billion euros," the statement said.

Following the completion of the capital increase, the bank's so-called Common Equity Tier 1 ratio -- a measure of its financial strength -- would rise to 10.2 percent, Commerzbank said.