Deutsche Bank’s Loan Exposure Management Group (LEMG) is pleased to announce the upsized closure of CRAFT EM CLO 2006-1 to USD 1.0 billion from USD 500 million. The execution of the upsized CLO augments an already existing 6 year risk distribution platform, which is utilized to hedge highly illiquid emerging market exposures on Deutsche Bank's balance sheet.
The most notable achievement of the re-tap is LEMG's ability to hedge beyond loan products and to incorporate bonds and derivative counterparty exposures.
As a result of the upsize, an additional USD 60m (totalling USD 120 million) of notes were sold to the market, consisting of equity and mezzanine (BB and BBB) tranches of the capital structure. As with the original USD 500 million, this upsize is expected to provide full economic capital and country limit relief.
The structure includes an innovative feature which lowers hedge costs through a fixed recovery rate mechanism. The upsized USD1.0 billion platform is expected to further facilitate new lending by Deutsche Bank to local companies domiciled in emerging markets, and to increase derivative capacity in these markets.
Deutsche Bank’s LEMG is mandated to price, manage and distribute the credit risk of lending products on behalf of the bank’s Commercial and Investment Banking divisions, Global Markets, Global Banking and Global Transaction Banking.
The CRAFT EM CLO transaction was executed in coordination with Deutsche Bank’s Global Markets team.
No offer or invitation to acquire securities is being made by or in connection with this communication. This communication does not contain or constitute an offer of securities for sale in any jurisdiction, including in the United States. This communication and the information contained herein are not for publication, distribution or release in, or into, the United States.
For further information, please call:
Richard Thomson (+44 20) 7545 6941
Press & Media Relations
Oonagh Baerveldt (+44 20) 7547 1605
Press & Media Relations
About Deutsche Bank
Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With Euro 1,128 billion in assets and 68,849 employees in 73 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.
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