Debt and equity-linked
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| Alan Dunning of Cleary Gottlieb receives his award from IFLR's Nicholas Pettifer |
Deutsche Bank exchangeable notes
Basel II came into force in January 2008, forcing banks to reconsider their capital adequacy and tier one capital requirements. Deutsche Bank was one step ahead of the game, issuing €200 million notes in April 2007 that can be exchanged when the bank wishes into tier one capital.
The callable floating-rate contingent-capital notes can be changed into noncumulative trust preferred securities to be issued by Deutsche Bank Contingent Capital Trust I. Deutsche Bank has made several similar offerings since April, and plans more.
Basel II means that capital requirements and ratios will be more volatile in the future. This new product allows Deutsche to convert an outstanding security with a certain structure, capital treatment and pricing into a capital security meeting all regulatory requirements.
Cleary Gottlieb Steen & Hamilton advised Deutsche...