German banking group Deutsche Bank has revealed plans to raise €8bn ($8.5bn) in capital through a share sale and float its asset management business as part of turnaround plan.

The capital raise will be launched on 21 March 2017, in which up to 687.5 million new shares will be issued.

The bank, which suffered a €1.9bn net loss in the fourth quarter of 2016 weighed down by restructuring and litigation expenses, said it will sell a minority stake in its asset management business through an IPO. The sale is expected to be completed within the next two years.

The restructure undertaken by CEO John Cryan also includes plans to reintegrate the group’s German retail banking business Postbank and Private & Commercial clients business. The combined group would serve over 20 million customers.

“Potential annual synergies are estimated at €0.9bn by 2022 and require restructuring and severance costs of around €1bn,” Deutsche Bank said.

The bank also unveiled plans to combine its global markets business with its corporate and investment bank, which were spilt in 2015.

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“The creation of the new Corporate & Investment Bank aims to reduce spending on infrastructure. The division’s combined adjusted cost base of €12.9bn in 2016 is envisioned to decrease by €0.7bn by 2018,” the bank noted.

“Our decisions are a significant step forward on the path to creating a simpler, stronger and growing bank. The capital increase will reinforce our financial strength substantially. The new three-pillar structure of our operating business should position us for significant growth, both in revenues and earnings,” Cryan said.

At the same time, the bank appointed CFO Marcus Schenck and Christian Sewing, CEO of Germany and head of private, wealth & commercial clients, as deputy CEOs.

Meanwhile, Cryan has also been given the responsibility for the bank’s US business, in addition to his role as CEO.