Deutsche Bank sells $3 billion bond as investors seek spread
- Wall Street falls with financials, other post-election gainers
- The FTC Confirms Antitrust Charges Against Qualcomm (QCOM) for Monopolizing Semiconductor Device Used in Cell Phones
- United Airlines (UAL) Tops Q4 EPS by 5c
- Obama shortens sentence of Manning, who gave secrets to WikiLeaks
- After-Hours Stock Movers 01/17: (SHLO) Higher; (GIMO) (AFAM) (CSX) Lower (more...)
A Deutsche Bank logo adorns a wall at the company's headquarters in Frankfurt, Germany June 9, 2015. REUTERS/Ralph Orlowski/File Photo
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
By Natalie Harrison
NEW YORK (IFR) - Deutsche Bank issued its first US dollar-denominated bond in five months on Friday when its raised $3 billion through a five-year issue following reverse enquiry from investors, a person close to the deal told IFR.
The senior unsecured bond priced just below par with a coupon of 4.25% and at a spread of 300bp over Treasuries.
The bond is the first sold by Deutsche Bank in the US dollar market since May when it raised $3.6 billion from three and five-year debt, and follows a sharp widening in its spreads.
Several investors had asked about the possibility of a new debt issue from Deutsche Bank as they sought to pick up some yield.
Deutsche Bank responded to those queries on Friday, and sold the bond to a limited number of accounts after gauging interest on where a new deal would come.
Deutsche Bank's bonds, in particular its riskiest Additional Tier 1 issues, have been under intense pressure since mid-September when the US Department of Justice asked the bank to pay $14 billion to settle an investigation into its selling of mortgage-backed securities.
The new bond offered a sizable new issue concession of about 50bp over Deutsche Bank's similarly dated outstanding debt, reflecting investors' heightened concerns about the bank.
Its 3.375% senior unsecured 2021 bond, which was priced in May, was trading at a G-spread of around 240bp earlier on Friday, according to MarketAxess, after widening close to 300bp last week.
Deutsche Bank was sole lead on the new 144a transaction.
(Reporting by Natalie Harrison; Editing by Paul Kilby)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Deutsche Bank (DB) Agrees to Pay $7.2B for Misleading Investors in Sale of RMBS
- Brazil Air Force to privatize air traffic control telecom system
- Suspect in Florida police officer's slaying captured
Create E-mail Alert Related CategoriesReuters
Related EntitiesDeutsche Bank
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!