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Berlin (AWP / AFP) – Deutsche Bank announced Tuesday that it will buy back 615 million euros worth of investor-owned bonds, a disappointing result for Germany's largest bank, which initially targeted up to 1 billion euros. euros.
The bank had launched this buyback operation, via a public offer for "senior unsecured bonds", in order to optimize its excessive liquidity.
These are two types of bonds, some maturing in 2025 and paying an annual coupon of 1.125%, others in 2018 and yielding 1.75%.
At the end of September 2018, the bank held 268 billion euros of cash, resources it can quickly draw on to meet its cash obligations.
Part of this liquidity is placed in the European Central Bank, with an interest rate of 0.40%. The bank wants to use this liquidity to reduce part of its debt.
Despite its efforts to reduce its exposure to risky activities, Deutsche Bank has been maintained among the 29 banks in the world classified as "systemic", according to the list published in mid-November by the Financial Stability Board (FSB), an international organization affiliated to the G20.
The institution, weakened since 2008 and in deficit for three years, also had poor ratings in bank stress tests, according to the results released earlier this month by the European Banking Authority (EBA).
afp / rp
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