The Frankfurt-based bank, Germany’s biggest, said it would offer to repurchase 3 billion euros ($3.4 billion) in euro bonds and $2 billion in dollar bonds. Independent Research GmbH set a €18.50 ($20.56) price target on shares of Deutsche Bank AG and gave the stock a “neutral” rating in a research report on Thursday, January 21st.
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The move comes after a sharp drop in Deutsche shares in recent weeks amid global market turmoil. It confirms the continued appetite of institutional investors in offshore wind assets, and the ability of Deutsche Bank to support complex multi-sourced debt financing across regions as a single sourced solution. He said the buyback doesn’t address bigger questions about Deutsche Bank’s capital levels.
Schenck said Friday the bank had around 215 billion euros ($241 billion) in reserves at the end of 2015, equivalent to 120% of its short-term funding needs. “By repurchasing this debt below its issue price, the bank realizes a profit”.
Shares of Deutsche Bank have fallen about 40 per cent since the start of this year as shareholders expressed doubts over the management’s execution of its two-year turnaround plan, announced last October.
Deutsche shares shot up almost 10% Friday.
Deutsche Bank AG (FRA:DBK) opened at 13.970 on Tuesday.
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Friday’s announcement marks a second offensive by the group to allay fears, after its new chief executive John Cryan took the unusual step earlier this week of issuing a public statement and writing to the group’s employees to say that the bank “remains absolutely rock-solid, given our strong capital and risk position”. In addition, Deutsche Bank has been mandated as security agent, principal paying agent, registrar, U.S. paying agent, Schuldschein agent, facility agent, settlement agent and indenture trustee.
