Deutsche Bank improves leverage ratio with AT1 bond sale

FRANKFURT Tue May 20, 2014 9:52am EDT

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FRANKFURT May 20 (Reuters) - Deutsche Bank improved its leverage ratio by 24 basis points from 2.5 percent by selling 3.5 billion euros ($4.80 billion) of Additional Tier 1 (AT1) bonds, a source close to the transaction said on Tuesday.

Deutsche Bank's first-ever AT1 issue was a multi-currency benchmark deal intended to address concerns about its capital reserves.

Deutsche also plans to raise an additional 8 billion euros in equity capital through a share placement and rights issue in June, a measure that would alone improve the bank's leverage ratio from 2.5 percent to 3.1 percent once the transaction is completed, Deutsche said on Monday.

Aiming to satisfy new regulations for European banks in the wake of the global financial crisis, Deutsche plans to raise a total of up to 5 billion euros in deeply subordinated bonds to shore up its balance sheet. (Reporting by Kathrin Jones, writing by Thomas Atkins; editing by Arno Schuetze)

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