Deutsche Bank says to raise ?8 bn with new share issue

 

Germany's troubled banking behemoth Deutsche Bank (IOB: 0H7D.IL - news) said Sunday it plans to raise around 8.0 billion euros ($8.5 billion) by issuing new shares and announced a new chapter in its post-financial-crisis restructuring.

The bank will issue almost 690 million new shares, with subscription rights for existing shareholders, allowing it to raise "almost exactly" the needed sum, chief executive John Cryan told journalists in a conference call.

The new share issue "will help us remove a source of uncertainty," Cryan said, "and also increase confidence in us as a counter-party and encourage clients to deepen their relationship with us."

As well as the capital increase, Deutsche plans to retain subsidiary Postbank -- long slated to be sold off -- and partially float its Deutsche Asset Management unit -- itself valued at around 8 billion euros by analysts.

The partial sell-off of the asset management business still has to be approved by German financial regulator BaFin.

In future, the bank will be reorganised around three divisions: private banking and wealth management, asset management, and corporate and investment banking.

Deutsche has been in the throes of a massive restructuring since Cryan took the helm in 2015.

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