FRANKFURT May 18 Deutsche Bank is
preparing an 8 billion euro ($11 billion) capital increase that
will see the Qatari royal family become a major shareholder as
Germany's biggest lender aims to quash doubts about its capital
Qatar will buy shares worth 1.75 billion euros and a
subsequent rights issue is expected to raise 6.3 billon of new
equity, Deutsche Bank said on Sunday.
The transaction will help Deutsche Bank shore up its capital
ratio, which is currently lagging that of peers. The measures
will increase the core equity tier 1 ratio by about 230 basis
points to 11.8 percent.
Deutsche Bank is leading the share offering itself. The
subscription will run through June 24, 2014, and a syndicate of
banks has agreed to a firm underwriting of the new shares.
Separately, Deutsche Bank has set itself new financial
targets and is now aiming for a return on equity of
approximately 12 percent in 2016 on a reported basis.
"Deutsche Bank aspires to return surplus capital to
shareholders - including in the form of competitive dividend
payout ratios - in the long term," the lender said in a
($1 = 0.7297 Euros)
(Reporting by Arno Schuetze; Editing by Robin Pomeroy)