Deutsche Bank unveils plans to issue Additional Tier 1 capital

Maria Nikolova

The issuance is expected to be of benchmark size with a minimum of $1 billion.

Deutsche Bank AG (NYSE:DB) has earlier today unveiled its plans to issue securities that qualify as Additional Tier 1 (AT1) capital.

The issuance is expected to be of benchmark size with a minimum of $1 billion. The denominations of the securities will be $200,000. The securities are registered in the United States.

The decision for the issue was made by the Management Board with the approval of the Chairman’s Committee of the Supervisory Board.

The transaction marks a further step in managing Deutsche Bank’s regulatory capital requirements by preserving a level of AT1 instruments of 1.5% or more of risk-weighted assets on a fully-loaded basis. In addition, it supports progress towards the 4.5% fully loaded leverage ratio target for 2020.

The securities will be subject to a write-down provision if Deutsche Bank’s Common Equity Tier 1 capital ratio falls below 5.125% and be subject to other loss-absorption features pursuant to the applicable capital rules. The decision to issue these securities is based on the authorization granted by the Annual General Meeting in 2018.

Deutsche Bank Securities Inc. will act as the sole bookrunner for the placement.

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