Germany-based Deutsche Bank is reportedly planning to raise approximately 8bn ($11bn) in new capital by divesting nearly 360 million new shares, as part of its strategy to strengthen balance sheet and to expand investment and retail banking businesses.
The increased capital buffer will also enable the bank to comfortably steer the challenging business and regulatory environment.
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Commenting on the strategy, Deutsche Bank co-chief executives Jürgen Fitschen and Anshu Jain said, "We are launching a package of measures designed to reinforce Deutsche Bank’s aspiration to be the leading client-centric global universal bank."
"We are decisively strengthening our capital, further improving our competitiveness, and investing in targeted growth initiatives across our core businesses."
Of a total of 360 million new shares, the Qatari royal family has agreed to acquire 60 million shares, in a 1.75bn transaction, through its investment vehicle Paramount Holdings.
The remaining 6.25bn worth shares will be sold to existing investors using a so-called rights offering, which is already fully underwritten by a group of six banks.
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By GlobalDataThe lender believes that the capital measures will boost the Common Equity Tier 1 (CET1) ratio by nearly 230 basis points from 9.5% at the end of the first quarter 2014 to 11.8% on a pro forma CRD4 fully-loaded basis.
