* Cash bolsters Deutsche Bank capital base, fund revamp
* Shareholders exercised 99.1 pct of subscription rights
* Share down 0.5 pct vs 0.3 pct drop in bank index
(Adds shares, reaction from investors, detail on the rights)
FRANKFURT, June 25 Deutsche Bank
successfully completed an 8.5 billion euro ($11.6 billion)
capital increase aimed at fortifying its regulatory ratios and
paying for restructuring at Germany's biggest lender.
"We have taken decisive steps to protect Deutsche Bank
against known capital challenges, sharpen our competitive edge,
and accelerate investments in growth in all our business
divisions," Deutsche Bank Co-Chief Executives Juergen Fitschen
and Anshu Jain said in a statement on Wednesday.
Investors were generally supportive of the capital increase
when it was unveiled last month, saying it showed Germany's
biggest lender was moving to quell concerns about a capital gap
that had dogged it since the financial crisis.
But Deutsche Bank still faces worries over performance at
the investment bank, its largest division, as well as a host of
legal and regulatory threats such as an ongoing global probe
into currency price manipulation and a U.S. probe into financial
dealings with Iran.
Deutsche Bank shares have fallen by more than 10 percent
since Jain said in late April he would "not rule out any option"
to reach the lender's capital targets. The STOXX Europe 600
banking index was flat over the same period.
Around 6.75 billion euros of the capital increase came from
a public offering, with subscription rights at 22.50 euros per
share, of which 99.1 percent were exercised, Deutsche Bank said.
The remaining new shares that were not subscribed will be
sold on the market, it added.
A source familiar with the transaction said that about 40
percent of the rights were traded, which is in line with similar
A further stake worth around 1.75 billion euros had already
been placed with an investment vehicle owned by Sheikh Hamad Bin
Jassim Bin Jabor Al-Thani of Qatar.
($1 = 0.7355 Euros)
(Reporting by Jonathan Gould and Arno Schuetze; Editing by
Maria Sheahan and Louise Heavens)