Announcement of plans to release more Tier 1 capital bonds, in accordance with Article 17 of the Market Abuse Regulation (EU) No 596/2014.
Deutsche Bank, with ticker symbols XETRA: DBKGn.DE and NYSE: DB, has announced plans to issue Additional Tier 1 (AT1) capital instruments. The securities, expected to be of benchmark size, will be issued without shareholders' pre-emptive rights, under authorization from the Annual General Meeting in 2022.
Each denomination of the securities will be €200,000, a common range in AT1 issuances. The AT1 securities will offer a coupon of 5.125% per annum, payable semi-annually. The first call date for the issuance is October 30, 2030, with a maturity date of October 30, 2050.
Goldman Sachs International has been appointed as the joint lead manager for the placement of the AT1 securities. Deutsche Bank will act as the sole bookrunner for the placement. The securities will be listed on both the Frankfurt Stock Exchange and the Luxembourg Stock Exchange.
The issuance price for the AT1 securities is set at 99.125% of their nominal value. The securities will support Deutsche Bank's Tier 1 leverage ratio and solvency requirements. Proceeds from the AT1 securities issuance are intended for general corporate purposes.
Moody's and S&P Global Ratings have assigned ratings to the AT1 securities. Moody's has assigned a rating of Ba3, while S&P Global Ratings has assigned a rating of BB-. The securities will be perpetual, callable instruments with contingent write-down or conversion features, compliant with Basel III/CRR regulations.
While specific details about Deutsche Bank's 2025 AT1 instrument were not available at the time of this writing, it is reasonable to anticipate a similarly structured offering based on contemporaneous AT1 issuances by other European banks in 2025. These issuances typically targeted institutional investors with robust demand across European financial centers and were listed on major exchanges such as the Luxembourg Euro MTF market. Coupon rates were likely reflective of market conditions and bank credit profile in mid-2025, probably in the 6-7% range.
It is important to note that the securities will not be registered under the Securities Act of 1933, as amended, and will be issued under "Regulation S" of the Securities Act. Furthermore, 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.
For exact details on Deutsche Bank’s 2025 AT1 issuance, including denomination, placement, and regulatory compliance, official press releases by Deutsche Bank or regulatory filings would need to be consulted.
The expected oversubscription of the issuance underscores the confidence investors have in Deutsche Bank's financial health and strategic direction. The issuance of AT1 capital instruments is a common practice among banks to meet prudential capital requirements and strengthen their balance sheets.
The AT1 securities issued by Deutsche Bank, as stated in their announcements, will offer a coupon of 5.125% per annum, payable semi-annually, and are intended for general corporate purposes to support their finance needs. The securities, if compared to contemporary AT1 issuances by other European banks in 2025, may have coupon rates in the 6-7% range, reflecting market conditions and bank credit profiles.
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