Deutsche Bank buys back $740m of own dollar bonds
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.