In show of financial strength, Deutsche Bank buys back debt

The offer for bonds denominated in euros is worth up to €3 billion, while that for debt denominated in United States dollars totals up to $2 billion.

The announcement came a day after J.P. Morgan Chase & Co.’s shares rebounded on news that the US bank’s chairman and chief executive, James Dimon, had bought 500,000 of J.P. Morgan’s shares, for $26.6 million.

WindMW refinanced its construction loans with the issuance of approximately €1bn of senior secured project bonds in the form of listed euro and United States dollar bonds, privately placed German registered notes (Namensschuldverschreibungen) and promissory note loans (Schuldscheindarlehen), along with a working capital facility and decommissioning letters of credit. He said the buyback doesn’t address bigger questions about Deutsche Bank’s capital levels.

“The bank’s final Tier 1 interest payment capacity for 2017 will depend on its actual net earnings in 2016 as well as movements in other reserves”, S&P said as it cut its rating on the instruments from B plus to double-B minus. “By repurchasing this debt below its issue price, the bank realizes a profit”.

Deutsche Bank’s share price is down more than 50pc since August, although it rose 9.3pc in morning trading, capping a volatile week.

Shares in Deutsche, having tumbled nearly 40% from the 22.5 level they began the year, were up 10% at 15.07 just before 1400 GMT. Its share price has plunged by a third since the beginning of the year.

On Friday, Germany’s finance minister said he wasn’t concerned about the financial health of Deutsche Bank.

Deutsche Bank told Reuters it would make any writedowns on Postbank when it was close to selling, which would depend on the market at that time, meaning it is unclear when the writedown will show up in the bank’s results. BNP Paribas set a €28.50 ($31.67) target price on Deutsche Bank AG and gave the company a neutral rating in a research note on Monday, November 2nd.