FRANKFURT, May 20 (Reuters) - Deutsche Bank has sold 3.5 billion euros ($4.80 billion) of its first-ever Additional Tier 1 (AT1) bonds, a multi-currency benchmark deal intended to address concerns about its capital reserves.
Germany’s flagship lender said on Tuesday it placed a 1.75 billion euro tranche with a coupon of 6 percent, a $1.25 billion tranche with a coupon of 6.25 percent and a 650 million pound tranche with a coupon of 7.125 percent.
Deutsche Bank had been deluged with a demand equivalent to more than 25 billion euros and had over 1000 orders in its order book, sources familiar with the transaction said.
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.
$1 = 0.7289 Euros Reporting by Arno Schuetze; Editing by Jonathan Gould