Deutsche Bank sets size of issue at 1.25 bln euros

 

Deutsche Bank has setthe size of a planned Tier 1 issue at 1.25 billion euros ($1.8billion), IFR reported on Wednesday, more than initially expected.

The German bank aimed the sale at retail investors as it tested the market for hybrid subordinated financial debt. The size was originally expected to be under 1 billion euros, according to a source familiar with the bank's plan.

Guidance is at a yield of 9.5 percent for the fixed-rate perpetual notes, with annual call dates beginning from March 2015, said IFR, a Thomson Reuters online news and market analysis service.

Initial guidance had put the yield between 9.5 and 9.75 percent, said IFR.

Standard & Poor's rates the bank's Tier 1 debt at BBB+, three notches below the bank's A+ senior debt rating; Moody's Investors' Service at Aa3 or two notches below Aa1 for senior debt; and Fitch Ratings at A+, one notch below its AA- senior debt rating. ($1 = 0.6983 euro)