Deutsche Bank AG (DBK) is selling its fourth structured note in six months that targets Italian investors and pays returns based on the number of days interbank lending rates stay within a set boundary.
Germany’s biggest bank is offering about 82 million euros ($108 million) of the so-called range-accrual notes, according to data compiled by Bloomberg.
Investors in the six-year securities, which are due to be issued on May 15, will receive a fixed interest rate of 4 percent in the first year, Bloomberg data show. In the five years after that, returns will be calculated based on how long the three-month euro interbank offered rate remains in a range of 0.6 percent to 3 percent, compared with 0.724 percent yesterday.
Frankfurt-based Deutsche Bank raised 278.8 million euros from the securities since November, the largest of which was a 159 million-euro note sold in February.
Nick Bone, a spokesman for Deutsche Bank in London, declined to comment.
A total of 20 banks raised $906 million from selling range- accrual notes tied to interbank lending rates this year, with Goldman Sachs Group Inc. the No.1 issuer, according to Bloomberg data, which exclude U.S. domestic-market issuance. That’s down 62 percent from the same period in 2011.
To contact the reporter on this story: Alastair Marsh in London at email@example.com