Deutsche Bank said it will raise €8bn in a planned capital increase as the lender seeks to shore up its finances.
The German bank will issue 687.5 million new shares at €11.65 each, Deutsche Bank said in a statement yesterday in Frankfurt.
That is a discount of about 35pc compared to Friday’s close. The underwriting syndicate was increased to 30 banks, the lender said.
The share sale, which will run from March 21 through April 4, will be the fourth capital infusion for Deutsche Bank since 2010.
Chief executive officer John Cryan, who had previously said he didn’t want to tap shareholders, reversed course this month after the shares almost doubled from their September low and Deutsche Bank was unable to find a buyer for a consumer banking unit it wanted to sell to shore up capital.
Deutsche Bank fell 1.5pc on Friday to close at €17.86. The stock is still up 80pc from an intraday low on September 30.
Germany’s largest lender has posted more than €8bn of net losses in the past two years as Mr Cryan settled misconduct cases and scaled back risk in the investment bank.
He is trying to sweeten the offer to shareholders with the promise of renewed dividends and a return to profitability this year.
Article Source: http://tinyurl.com/kbwqb42
