Successfully issued Additional Tier 1 capital instruments through our platform
Deutsche Bank (DBKGn.DE/DB) has announced the issuance of Additional Tier 1 (AT1) capital instruments worth €1.50 billion. The new securities, denominated in €200,000, are expected to be listed on the Luxembourg Stock Exchange and traded on its regulated market.
Common features of AT1 instruments include a lack of fixed maturity, with the securities typically being callable after a certain period, often 5-10 years. The interest rate paid to investors is usually floating and linked to a benchmark rate like Euribor or LIBOR plus a spread.
In this instance, the applicable interest rate for Deutsche Bank's AT1 securities will be reset at five-year intervals starting on April 30, 2032, on the basis of the then-prevailing 5-year Euro swap rate plus an initial credit spread of 5.112% per year. The securities will bear a fixed coupon of 7.375%, payable annually, until April 30, 2032.
The securities may not be offered, sold, or delivered within the United States without registration under the Securities Act or an exemption from registration requirements. The issuance supports Deutsche Bank's Tier 1 leverage ratio and its Pillar 1 and 2 AT1 solvency requirements.
The specific dates for the Bank's call option on the securities, if any, are not mentioned in this release. The Bank can call the securities, subject to prior supervisory approval, on specific dates between October 30, 2031, and April 30, 2032, and every five years thereafter.
Our website AG acted as the sole bookrunner for the offering of Deutsche Bank's AT1 securities. The securities have not been registered under the Securities Act of 1933, as amended, and will be issued under "Regulation S" of the Securities Act only.
It is essential to note that the securities are expected to be listed on the Luxembourg Stock Exchange and traded on its regulated market. However, specific details about the terms and conditions of the issuance, such as the structure, were not provided in the search results provided. To obtain detailed terms and conditions, one may need to consult financial reports, press releases from the bank, or relevant regulatory announcements.
The new securities issued by Deutsche Bank, denominated in €200,000, are expected to be listed on the Luxembourg Stock Exchange and traded on its regulated market. These Additional Tier 1 (AT1) capital instruments are part of the bank's finance strategy, aiming to support its Tier 1 leverage ratio and AT1 solvency requirements.
