DEUTSCHE BANK Deutsche Bank Shareholders Strongly Back Capital Increase

In what is seen as a vote of confidence, Deutsche Bank's main current shareholders have taken up a large quantity of the subscription rights associated with the bank's €8-billion capital increase.

The vast majority of Deutsche Bank’s shareholders have backed the financial firm’s €8-billion capital increase, Handelsblatt has learned.

Investment banks accompanying the capital hike expect that only 20 percent of the subscription rights handed to the bank’s current shareholders will have to be placed with new investors, sources in the banks told Handelsblatt. That is better than the usual 40 percent that typically goes to new investors in a capital increase of this size.

Above all, U.S. and European institutional investors have shown interest in the new shares, as well as major shareholders HNA in China, the state of Qatar, and the fund management firm Blackrock.

The high level of interest can be considered a win for Deutsche Bank, which has sought to use the sale of new shares to improve its own capital base and to restore investor trust in the bank, which has taken a series of major hits in the past few years, mainly due to myriad legal troubles.

Trading in subscription rights continued until the end of Tuesday, after which the capital increase is technically complete. Trading in the new shares is then set to begin on April 7.

Read the full story in Wednesday's Handelsblatt Global.