Deutsche Bank Buys Back Debt to Bolster Investor Confidence
Bank has repurchased $740 million in dollar-denominated senior unsecured securities
Deutsche Bank AG said on Monday it has so far repurchased $740 million in dollar-denominated senior unsecured securities in a buyback offer, part of a larger transaction aimed at shoring up investor confidence in its finances.
Deutsche Bank has offered to buy back up to $2 billion in dollar-denominated bonds in an offer that ends March 11. In a similar move, last week the German lender said it had repurchased €1.27 billion ($1.38 billion) in euro-denominated senior unsecured bonds, less than half the maximum amount.
“The relatively low investor participation in the public tender offers for both the Euro-denominated and U.S. Dollar-denominated securities tendered reflects improved market sentiment and an investor preference to retain exposure to Deutsche Bank,” the bank said Monday.
In mid-February, Deutsche Bank announced a debt buyback after a volatile week for banking stocks. At the time, Deutsche Bank shares fell on worries related to its far-reaching restructuring and its ability to make optional interest payments on risky debt.
Deutsche Bank expects a first-quarter gain of roughly €15 million from the repurchase of dollar-denominated securities, it said. Last week the bank said the euro-denominated buyback would result in a gain of about €40 million.
Source: WSJ
