Deutsche Bank to raise billions with rights issue

March 6, 2017
Source: BBC
Deutsche Bank to raise billions with rights issue

Deutsche Bank plans to raise about 8bn euros (£6.9bn, $8.5bn) by issuing new shares.

The share sale by the troubled German bank is part of a wider shake-up.

The bank will partially float its asset management business and retain Postbank - the retail banking business it had been expected to sell.

Deutsche will be reorganised around three divisions: private banking and wealth management; asset management; and corporate and investment banking.

Germany's biggest bank is trying to reshape itself after grappling with huge losses and a 15bn euro legal bill imposed by regulators since 2012.

In December, Deutsche Bank said it had agreed a $7.2bn (£5.9bn) payment to US authorities to settle an investigation into mortgage-backed securities.

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The sale of residential mortgage-backed securities played a significant role in triggering the 2008 financial crisis.

The rights issue will be launched on 20 March in a bid to repair its balance sheet.