Deutsche Bank is turning to the Qatari royal family in a bid to raise 8.0 billion euros ($11 billion) in fresh funding and assuage fears over its capital strength. Germany's biggest lender unveiled late Sunday plans to implement the second-biggest capital increase in its history.
Like its European counterparts, Deutsche Bank is under pressure to bolster its capital reserves. As part of a wider drive to set up a banking union as a bulwark against future financial crises, banks are being subjected to so-called stress tests and asset quality reviews by the European Central Bank this summer. Deutsche Bank announced it has placed 60 million shares at a price of 29.20 euros apiece with Paramount Holdings Services, the investment of the Qatari royal family. On top of this, it would issue up to 300 million new shares to raise a further 6.3 billion euros. The shares were correspondingly lower on the Frankfurt stock exchange on Monday, shedding 1.92 percent to 30.15 euros.
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