Deutsche Bank Raises $3.88 Billion
In an effort to strengthen its equity capitalization, Deutsche Bank has placed 90 million shares of newly issued stock with institutional investors, the company announced today. The offering is not registered with the Securities and Exchange Commission; as a result, the new shares "may not be offered, sold, or delivered" to U.S. investors.
The shares were priced at 32.90 euros, equal to $43.10 per share, raising a total of $3.88 billion in an effort to "strengthen the equity capitalization of the bank," according to the release. Deutsche Bank initially announced its intention to raise additional capital via a stock offering April 29.
In addition to the placement of newly issued stock to overseas institutional investors, Deutsche Bank left open the possibility of issuing as much as 2 billion euros ($2.62 billion) of subordinated debt "over the next 12 months." The subordinated debt is not expected to be registered with the SEC, so it will not be made available to U.S. investors.
The article Deutsche Bank Raises $3.88 Billion originally appeared on Fool.com.Fool contributor Tim Brugger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.