GO
Loading...

Enter multiple symbols separated by commas

Deutsche Bank capital hike set for hefty discount

Deutsche Bank will price its 8 billion euro ($11 billion) capital hike on Wednesday at between 21 euros and 21.50 euros per share, sources with knowledge of the matter told CNBC.

The price will represent a hefty discount on the German banking giant's current share price. Its stock was up 0.8 percent higher at 29.78 euros on Wednesday before pricing details of the issue were announced.

Track shares of Deutsche Bank here

Deutsche Bank signage in Vienna, Austria.
Patti Domm | CNBC
Deutsche Bank signage in Vienna, Austria.

Deutsche plans to tap shareholders for 6.3 billion euros of new equity, issuing up to 300 million new shares.

Another 1.75 billion euros will come from shares placed with Paramount Holdings Services, an investment vehicle owned and controlled by Sheikh Hamad Bin Jassim Bin Jabor Al-Thani, a member of the Qatari royal family. Al-Thani purchased 60 million shares at 29.20 euros.

Read MoreDeutsche Bank sees 'tectonic plate shift' in banking

The hike is aimed at improving Deutsche's capital ratio, providing a buffer for future regulatory requirements and supporting business growth. It should increase the bank's common equity tier 1 ratio, a key measure of a bank's ability to withstand an economic shock, to 11.8 percent, up from 9.5 percent at the end of March this year.

Banks

  • What the fate of the Ex-Im Bank means for small business

    The clock is ticking for the Export-Import Bank. CNBC's Kate Rogers talk to Susan Axelrod, who exports quiches and desserts all over the globe via credit insurance from the bank and hears from Rep. Jeb Hensarling on why the Export-Import Bank needs to die.

  • White-collars walk to their lunch break in Pudong business district in Shanghai, China.

    Western banks are losing ground to China, as the world's second-biggest economy vies to establish its economic influence.

  • China continues rate cuts

    China's Central Bank cuts rates for the fourth time since November to help support its struggling economy.