Natixis, one of the French banks worst hit by the US subprime crisis, priced its €3.7bn ($5.3bn) rights issue yesterday at a lower than expected 60 per cent market discount.

France's fourth largest bank is raising the money to strengthen its capital base and repay its two main shareholders, Caisse d'Epa-r-gne and Banque Populaire, the €2.5bn they advanced earlier this year.