Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) today announced that it had signed a binding agreement to subscribe to approx. 265.6 million newly issued shares in Hua Xia Bank for a total subscription price of RMB 3,909 million (approx. EUR 349 million). Deutsche Bank’s subscription is part of a private placement of Hua Xia Bank shares to its three largest shareholders with an overall issuance value of RMB 11.6 billion (approx. EUR 1.0 billion). Subject to regulatory approvals, this investment will increase Deutsche Bank’s equity stake in Hua Xia Bank to 13.7% of issued capital from 9.9% previously.
Rainer Neske, Head of Private & Business Clients and a Member of Deutsche Bank’s Group Executive Committee said: “This additional investment further demonstrates our commitment to Deutsche Bank’s relationship with Hua Xia Bank which has been very positive and with significant potential for further development.”
Colin Grassie, Chief Executive Officer, Deutsche Bank Asia Pacific, added: “Deutsche Bank’s partnership with Hua Xia Bank is an important part of our strategy to secure direct participation in the development of China’s financial services market.”
Deutsche Bank made its first equity investment in Hua Xia Bank in May 2006. In June 2007 both partners successfully started a joint credit card business in China. Deutsche Bank is providing comprehensive technical support and assistance to Hua Xia Bank to further strengthen its existing franchise in areas such as risk management, treasury, retail and corporate banking. Deutsche Bank has two seats on the Hua Xia Bank board.
Hua Xia Bank is the 12th largest bank in China by asset size and listed on the Shanghai stock exchange. With its 9,390 employees and its national banking license, Hua Xia Bank operates in 287 retail branches in 31 cities throughout China.
This release also contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our trading revenues, potential defaults of borrowers or trading counterparties, the implementation of our management agenda, the reliability of our risk management policies, procedures and methods, and other risks referenced in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our SEC Form 20-F of 27 March 2007 on pages 9 through 15 under the heading "Risk Factors." Copies of this document are readily available upon request or can be downloaded from www.deutsche-bank.com/ir .