Deutsche Bank buys back $740m of own dol­lar bonds

The Pak Banker - - FRONT PAGE -

Deutsche Bank, Ger­many's big­gest len­der, said Mon­day it has bought back $740 mil­lion (680 mil­lion euros) of its own dol­lar-de­nom­i­nated bonds as part of a bid to as­suage con­cerns about the so­lid­ity of its fi­nances, but the amount was smaller than ex­pected.

Ear­lier this month, the bank an­nounced plans to re­pur­chase up to $2.0 bil­lion of dol­lar-de­nom­i­nated se­cu­ri­ties, as well as 3.0 bil­lion euros of euro-de­nom­i­nated se­cu­ri­ties. The moves were part of a mul­ti­ple of­fen­sive to al­lay fears which also saw its new chief ex­ec­u­tive John Cryan take the un­usual step of is­su­ing a pub­lic state­ment and writ­ing to Deutsche Bank's em­ploy­ees to say that the group "re­mains ab­so­lutely rock-solid, given our strong cap­i­tal and risk po­si­tion."

In a short state­ment on Mon­day, Deutsche Bank said that in­vestors had ten­dered a to­tal $740 mil­lion of dol­lar-de­nom­i­nated bonds for it to buy back. It al­ready bought back 1.27 bil­lion euros of euro-de­nom­i­nated bonds last week. "The rel­a­tively low in­vestor par­tic­i­pa­tion in the pub­lic ten­der of­fers for both the euro-de­nom­i­nated and US dol­lar-de­nom­i­nated se­cu­ri­ties ten­dered re­flects im­proved mar­ket sen­ti­ment and an in­vestor pref­er­ence to re­tain ex­po­sure to Deutsche Bank," the state­ment said.

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