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

Metaverse Gaming NFT

Despite crypto winter, Fastex grabs $23.2 million in Fasttoken token sale

Fasttoken, part of the Fastex web3 ecosystem, has secured $23.2 million in financing through the private and public token sales of its native cryptocurrency Fasttoken (FTN).

Digital Assets

Iran to repay Russian debts in gold-backed stablecoins

A high-ranking member of the Russian parliament confirmed reports that his country was in talks with Iran to create a stablecoin for foreign trade settlements, to replace the dollar, ruble and Iranian rial.

Digital Assets

SEC denies Cathie Wood’s bitcoin ETF for second time

The approval of a regulated crypto derivative is still looking far less likely, as the US regulators have once again denied Cathie Wood’s application for a long-awaited spot bitcoin exchange-traded fund (ETF).

Executive Moves

Pavel Spirin promoted to Scope Markets CEO following Rostro acquisition

Belize-based FX and CFDs brokerage Scope Markets has promoted Pavel Spirin to take on an expanded role as the company’s chief executive officer. He replaces the outgoing CEO Jacob Plattner, who has also been a major shareholder since he resigned his position as managing director at GKFX.

Retail FX goes all-in on alternative investing, launches Rare Sneaker Portfolio

“The concept of curated Portfolios means that our members will be able to invest in categories like art, trading cards, royalties, and real estate without needing to become subject matter experts on individual assets.”

Industry News

State Street taps AWS and Microsoft for cloud and infrastructure solutions

“By standardizing and simplifying our technology operating model, we will be able to more quickly deploy client environments and launch new products and services, while continuing to enhance the resiliency of our technology environment and our business operations.”

Institutional FX

Bitpanda launches Investment-as-a-Service business for banks, fintechs, online platforms

“Financial institutions today have to ask themselves how they aim to cater the increasing demand for modern investing solutions. Building these Individually, means a high startup cost, and products that are often outdated before they are even launched.”

Institutional FX

Options expands market data feeds after partnership with Tools for Brokers

“Our integration with ACTIV Financial marked the beginning of a new era in market data availability and infrastructure. Our teams have come together to provide unparalleled, fully managed market data services alongside Options’ global connectivity and infrastructure.”

Industry News

Recruitment in financial services sector buoyant despite planned mass layoffs

“It remains to be seen what impact this will have on hiring levels within the financial services arena this quarter”, said APSCo, regarding the expected mass layoffs within the financial services sector in England & Wales.