Deutsche Bank AG 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.