Deutsche Bank successfully completes issuance of Additional Tier 1 capital instruments

Deutsche Bank AG placed Additional Tier 1 (AT1) capital instruments, a type of bond that counts toward a bank's core regulatory capital, with a total principal amount of €1.25 billion. Deutsche Bank says the issuance supports its leverage ratio and its Tier 1 and Total Capital solvency ratios.

Key details

• The securities carry a fixed coupon of 7.000%, paid semi-annually, until April 30, 2034. From April 30, 2034 the rate resets every five years at the then prevailing 5-year Euro swap rate (a benchmark euro interest rate) plus the initial credit spread of 3.656% per year.
• Deutsche Bank can call (redeem) the securities on each day between October 30 and April 30 of the following year, starting on October 30, 2033, and thereafter every five years.
• The securities come in denominations of €200,000. Deutsche Bank AG acted as sole bookrunner, the bank managing the sale.
• The securities have not been registered under the US Securities Act of 1933 and will be issued only under its Regulation S. They may not be offered, sold or delivered within the United States absent registration or an exemption.

What’s still pending

• The securities are expected to be listed on the Luxembourg Stock Exchange and traded on its regulated market.
• Any call of the securities is subject to prior supervisory approval.

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