Original post:
From the Financial Times:
Deutsche Bank to raise €8bn from investors
Deutsche Bank has turned to the Qatari royal family as part of plans to raise €8bn as the lender attempts to draw a line under concerns over its capital strength.We'll be back with more.
The Frankfurt-based bank will raise €6.3bn in a rights issue and a further €1.75bn directly from Paramount Services Holding, the investment fund of the Qatari royal family, according to people close to the situation. Deutsche declined to comment.
The extra capital is set to raise the lender’s common equity tier one ratio – a crucial measure of regulatory strength – from 9.5 per cent to as high as 12 per cent.
The capital increase, which is at the top end of what analysts had expected, will catapult Deutsche out of the ranks of the least well capitalised banks in Europe, an issue that has long been a source of agitation among investors....MUCH MORE
Update:
Here's Bloomberg on the haircut:
...The lender plans to complete the share sale by the end of June, before other banks take steps to raise capital, Handelsblatt said. It may offer shares at a discount of 25 percent to 30 percent of the current price, the newspaper said....
