Sept. 12 (Bloomberg) -- Deutsche Bank AG, Germany's biggest bank, plans to sell 140 billion yen ($1.2 billion) of bonds in Japan as early as tomorrow, two people with knowledge of the transaction said.

The Frankfurt-based bank is likely to raise about 30 billion yen in fixed-rate securities maturing in 10 years, said the people, who asked not to be named before an announcement. The bank also plans to sell floating-rate and fixed-rates notes maturing in five years. The bank's brokerage unit will handle the sale, the people said.

Sales of Samurai bonds, yen-denominated debt from foreign sellers in Japan, have more than doubled this year after U.S. authorities said in October investors wouldn't have to pay taxes on gains in the securities. Buyers are also attracted to returns higher than offered on Japanese corporate bonds.

Companies from Telefonica SA in Madrid to Citigroup Inc. in New York sold 1.5 billion yen of bonds in Japan this year, compared with 741 million yen raised in the whole of 2006, according to data compiled by Bloomberg.

Aston Bridgman, a spokesman for Deutsche Bank in Tokyo, wasn't immediately available to comment.

Deutsche Bank is rated Aa1, the second-highest investment grade, by Moody's Investors Service, and one step lower at AA by Standard & Poor's.

To contact the reporter on this story: Mariko Yasu in Tokyo at myasu@bloomberg.net

Last Updated: September 12, 2007 03:56 EDT