Deutsche Bank will kick off a capital increase of 8 billion euro. The news, leaked over the weekend, was confirmed last night by the German banking giant.
The recapitalization is broader than expected and will help the bank raise its common equity tier 1 ratio from 9,5 to 11,8% and thus leave the ranks of the least capitalized banks in Europe. If the operation is successful, Deutsche Bank would climb the capital strength ranking in Europe, sheltering itself from theanalysis of assets by the ECB.
It will be from the game the Paramount Fund of Qatar, which confirmed its intention to participate in the operation by putting 1,75 billion on the plate (out of the 6,3 billion euro that will be raised through the issue of rights for the subscription of new capital) in order not to dilute its 17% stake in the capital of the Bank. Deutsche Bank will put 360 million new shares on the market, of which 60 million are expected to end up in the portfolio of the Qatari royal family.
Rumors of a new capital increase (after the three billion one launched just a year ago) had already circulated at the end of April: the German newspaper "Handelsblatt", in particular, in recent weeks had spoken of an imminent recapitalization, but had predicted an amount not exceeding five billion euros.
