Deutsche Bank to Buy Back $5.4 Billion in Debt -- Update
February 12 2016 - 9:27AM
Dow Jones News
By Jenny Strasburg and Madeleine Nissen
Deutsche Bank AG said it will buy back $5.4 billion of its
senior unsecured debt, in a move designed to bolster investor
confidence in the German lender's liquidity and in the value of its
securities.
The announcement Friday afternoon in Europe came at the end of a
volatile week for Deutsche Bank shares and the broader market for
bank stocks.
The buyback offer targets up to EUR3 billion ($3.4 billion) in
euro-denominated securities and $2 billion in U.S.
dollar-denominated securities.
The bank said its public tender offer was effective Friday for
seven to 20 business days for euro- and U.S. dollar-denominated
securities, respectively.
The bank said it had EUR215 billion in liquidity reserves at the
end of 2015, as previously disclosed.
Deutsche Bank "is taking advantage of market conditions to
repurchase this debt, lowering its debt burden at attractive
prices," Marcus Schenck, the finance chief, said in a statement.
"By repurchasing this debt below its issue price, the bank realizes
a profit."
Before the announcement, Deutsche Bank shares were up 8% Friday.
The announcement boosted them slightly, to near 10% on the day.
Word of a potential bond buyback had helped stabilize Deutsche Bank
shares earlier in the week following a 9.5% fall on Monday.
Before the announcement, Deutsche Bank shares were up 8% Friday.
They've been whipsawed this week amid questions about the bank's
restructuring and ability to pay optional interest payments on its
riskiest debt.
The shares are down about 35% this year.
Write to Jenny Strasburg at jenny.strasburg@wsj.com and
Madeleine Nissen at Madeleine.Nissen@wsj.com
(END) Dow Jones Newswires
February 12, 2016 09:12 ET (14:12 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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