Deutsche Bank not to call Additional Tier 1 Notes on April 30, 2020

Maria Nikolova

Deutsche Bank will not exercise its option to redeem the USD 1.25 billion 6.25% Additional Tier 1 Notes (ISIN: XS1071551474) on April 30, 2020.

Deutsche Bank AG (NYSE:DB) today announced its decision to redeem the USD 800 million 6.55% Trust Preferred Securities of Deutsche Bank Contingent Capital Trust II (“DB CCT II”, ISIN: US25153X2080) on May 26, 2020, that is, the first business day following the scheduled May 23, 2020 payment date.

Deutsche Bank also announced that it will not exercise its option to redeem the USD 1.25 billion 6.25% Additional Tier 1 (AT1) Notes (ISIN: XS1071551474) on April 30, 2020, the first available call date for such securities.

The bank explained that these decisions reflect its strategy of evaluating all call decisions primarily on an economic basis in order to manage its cost of funding, considering market conditions and the current and future regulatory value of the respective capital instruments.

Let’s recall that, on February 11, 2020, Deutsche Bank confirmed the successful completion of issuance of Additional Tier 1 securities. The bank has placed undated Additional Tier 1 securities with a principal amount of $1.25 billion (approximately EUR 1.15 billion equivalent).

The securities bear a fixed coupon of 6%, payable annually, until April 30, 2026. The Bank said back in February that it can call the securities on each day from October 30, 2025 to April 30, 2026, thereafter on April 30th of each succeeding year. The applicable rate of interest will be reset at five year intervals starting on April 30, 2026 on the basis of the then prevailing 5 year US Treasury Yield plus the initial credit spread of 4.524 percent per year.

Read this next

Digital Assets

Masa Announces Comprehensive AI Developer Ecosystem with 13 Dynamic Partners Focused on Leveraging Decentralized Data and Large Language Models

In a groundbreaking development, Masa, the global leader in decentralized AI and Large Language Models (LLMs), proudly announces the launch of its AI Developer Ecosystem, partnering with 13 visionary projects.

Financewire

Kinesis Mint becomes the official partner for the House of Mandela

Kinesis Mint, the certified independent precious metals mint and refinery of Kinesis, the monetary system backed by 1:1 allocated gold and silver, has been appointed the exclusive coin producer for the House of Mandela.

Chainwire

Kadena Announces Annelise Osborne as Chief Business Officer

Kadena, the only scalable Layer-1 Proof-of-Work blockchain, expands its leadership team by onboarding Annelise Osborne as Kadena’s new Chief Business Officer (CBO).

Fintech

TNS brings full-stack market data management to EMEA

“We are also delighted to have Ben Myers join our London-based TNS Financial Markets team as Head of Strategic Sales for EMEA, to bolster our presence in the region.”

Chainwire

Velocity Labs and Ramp Network facilitate fiat to crypto onramp on Polkadot via Asset Hub support

Velocity Labs is proud to announce a fiat to crypto onramp using Ramp Network through the integration of Asset Hub. Through it, Ramp will be able to service any parachain in the Polkadot ecosystem.

Executive Moves

INFINOX hires Mayne Ayliffe as Global Head of HR

“I look forward to working with our teams around the world to develop a strategic HR agenda that supports high performance and is centred on human motivation.”

Fintech

Sterling to provide risk and margin support for fixed income

“Firms must have the tools to effectively manage their risk across all asset classes. As yields rise, we see more exposure from clients in the fixed income space. We understand their need to measure and mitigate risk in a highly regulated environment.”

Retail FX

FXOpen launches HK share CFDs: Tencent, Alibaba, Xiaomi, Baidu

Hong Kong share CFDs will be commission-free for a limited period of time.

Retail FX

IronFX Celebrates an Award-Winning Start to 2024 with a Series of Industry Recognitions

IronFX, a global leader in online trading, has embarked on 2024 with a spectacular display of accolades that highlight its commitment to excellence and innovation in the competitive financial services sector.

<