Deutsche Bank will proceed with a debt buy-back operation, the bank said in a statement. The German bank proposes to buy back three billion euros of debt denominated in euros and over two billion dollars (about 1.8 billion) in bonds denominated in the US currency. Repurchases focus on five series of bonds in euros and eight lines of bonds in US dollars.
This announcement comes after the debt and the bank shares have suffered strong pressure from investors. Deutsche Bank even had to make a statement earlier this week to ensure the ability to pay the coupon contingent capital bonds (CoCos). A day later, the Financial Times reported the intention of the bank to move towards a debt repurchase, to give a proof of strength to the markets and to generate capital gains.
In a statement Friday Deutsche bank points out that “a strong bank liquidity position allows repurchase those instruments without any changes to the 2016 financing plan.” The repurchase transaction is expected by the bank last “seven working days for instruments denominated in euros and 20 working days for instruments denominated in US dollars.”
The actions of the German bank recover nearly 10 % on Friday to 15.055 euros. But even with this gain, still accumulate loss of 33% from the beginning of the year.
great unknowns of Deutsche Bank
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