Deutsche Bank Rallies On Modest Debt Buyback Plan, Schaeuble Proclaims "Strong, Resilient Bank"

Deustche Bank stock is ripping 10% higher after confirming old news that it will undertake a modest debt buyback of $2 billion and €3 billion (not including the CoCos). Have no fear though as Wolfgang Schaeuble proclaimed Deutsche Bank is a "strong bank" that ios "resilient" and "well positioned."

 

Back to the start of the week...

 

 

Full Statement:
Deutsche Bank announces a public tender offer to purchase certain series of EUR and USD-denominated senior unsecured debt securities.

The Bank's strong liquidity position allows it to repurchase these securities without any corresponding change to its 2016 funding plan. 

The EUR tender offer encompasses the following securities and has a target acceptance volume of EUR 3 bn.
ISIN

  • DE000DB7XHM0
  • DE000DB7XJB9
  • DE000DB7XJC7
  • DE000DB5DCS4
  • DE000DB7XJP9


The USD tender offer encompasses the following securities and has a target acceptance volume of USD 2 bn.
ISIN

  • US25152R2U64
  • US25152R2X04
  • US25152R2Y86
  • US25152RVS92
  • US25152RXA66
  • US25152RYD96
  • US25152RWY51
  • US25152CMN38


The tender offer is expected to be open for seven business days for the EUR denominated securities, and 20 business days for the USD denominated securities, subject to lower pricing for bonds tendered after day 10.

So that's great - apart from it's a drop in the ocean. But do not worry about Deutsche Bank as Wolfgang Scaeuble proclaimed:

  • *SCHAEUBLE: DEUTSCHE BANK HAS ENOUGH CAPITAL
  • *SCHAEUBLE: DEUTSCHE BANK IS RESILIENT, WELL POSITIONED
  • *SCHAEUBLE: DEUTSCHE BANK IS A ‘STRONG BANK’

And we all know we can trust him.