Deutsche Bank elects not to exercise call option on 3.875% 2004/2014 subordinated bond
Issue Details (the „Notes“):
Issuer: Deutsche Bank AG
Amount: EUR 1 billion
Issue Date: 16 January 2004
Maturity Date: 16 January 2014
Call Date: 16 January 2009 and quarterly thereafter, subject to 30 days notice period
Call Price: 100%
Coupon: 16 Jan 04 – 16 Jan 09: 3.875%
16 Jan 09 – 16 Jan 14: 3m Euribor + 88 bp
Listing: Frankfurt (regulated market)
Deutsche Bank (XETRA:DBKGn.DE / NYSE:DB) has decided not to exercise its early redemption option to call the Notes at par because replacement costs would be more expensive than the existing EURIBOR +88 bps step-up coupon. Accordingly, the Notes' early redemption provision at the option of the issuer is not in-the-money.
Deutsche Bank views the holders of the Notes as important constituents, like many other important stakeholders, including shareholders, senior creditors, other capital instrument holders, rating agencies, regulators and employees. In light of the fact that the early redemption option is not in-the-money, Deutsche Bank believes that the appropriate balance of constituent interests is served by not calling the Notes.
The Notes are redeemable at the issuer's option quarterly after 16 January 2009. Deutsche Bank will monitor this early redemption option for attractive opportunities to exercise in the future while considering the above factors.
Deutsche Bank as dealer will continue to make a market in the Notes. Deutsche Bank as issuer may repurchase Notes at fair market value from investors who wish to sell part or all of their holdings.
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