Deutsche Bank Sells $1.5 Billion of 15-Year Subordinated Notes

Deutsche Bank AG (DB) sold $1.5 billion of subordinated, dollar-denominated debt.

Continental Europe’s biggest bank issued 15-year, 4.296 percent notes that yield 237.5 basis points more than similar-maturity Treasuries, according to a regulatory filing. The debt is callable on May 24, 2023, when the coupon resets to 224.75 basis points more than the five-year mid-swap rate, the filing said. A basis point is 0.01 percentage point.

Proceeds will be used for general corporate purposes and to strengthen the Frankfurt-based lender’s regulatory capital base, according to a company filing.

The new notes may be rated Baa3 by Moody’s Investors Service, said a person with knowledge of the offering who asked not to be identified because terms weren’t set at the time.

To contact the reporter on this story: Victoria Stilwell in New York at vstilwell1@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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