Deutsche Bank launches capital hike

Deutsche Bank is launching the second biggest recapitalisation in its history and is seeking to raise up to 8 billion euros ($A12 billion).

The headquarters of Deutsche Bank in Frankfurt, Germany

Deutsche Bank is seeking to raise up to 8 billion euros in its second biggest recapitalisation. (AAP)

Deutsche Bank is seeking to raise up to 8 billion euros ($A12 billion) in fresh capital, in what would be the second biggest recapitalisation in the bank's history.

The bank launched its biggest capital hike in 2010, when it sought 10 billion euros.

In a statement on Sunday, the bank said it would carry out the recapitalisation in two phases, first by raising 1.75 billion euros from one single investor - Paramount Holdings Services, an investment vehicle owned by a member of the Qatari royal family.

The second phase of the recapitalisation will be carried out through a sale of 300 million shares reaching 6.3 billion euros.

"The package of measures we are announcing today represents a decisive response to both the challenges and the opportunities in a changing macro-economic, competitive and regulatory environment," said Juergen Fitschen and Anshu Jain, co-chief executive officers of the bank in a statement.


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Source: AAP


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