Deutsche Bank sets $11B capital raise


"We are launching a package of measures designed to reinforce Deutsche Bank's (DB) aspiration to be the leading client-centric global universal bank," say co-CEOs Jurgen Fitschen and Anshu Jain of the bank's plan to sell €8B ($11B) of new shares to boost its capital ratios.

Of the 360M new shares to be issued, the Qatari royal family has agreed to buy 60M, and the remaining amount will be sold to existing owners via a rights-offering. Insiders expect the bank will have to offer the stock at about a 25% discount to the current price, and the sale is expected to boost Deutsche's Tier 1 capital level to 11.8% vs. the current 9.5%.

The equity raise isn't a huge surprise, and DB has been in the penalty box for months as investors discounted the share issuance.

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