Deutsche Bank AG plans to sell €8 billion (US$11 billion) worth of new shares in a bid to quell concerns about the adequacy of its capital buffers, the Wall Street Journal reported Sunday.
The German lender will issue a total of 360 million new shares, of which the Qatari royal family will buy 60 million for €1.75 billion through its Paramount Holdings investment vehicle, the report quoted an informed source as saying. The rest of the shares will be sold to existing investors via a rights offering.
The planned capital increase is expected to boost a gauge of the bank’s financial strength, its core Tier 1 level, to at least 11.5 percent of its risk-adjusted assets, compared with 9.5 percent now, the report said.
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