New Issue: Deutsche Bank sells $1.25 billion subordinated tier 2 notes due 2033

By Cristal Cody

Chicago, Jan. 5 – Deutsche Bank AG, New York Branch priced $1.25 billion of fixed-to-floating rate subordinated tier 2 notes due Jan. 7, 2033 on Tuesday, according to an FWP filing with the Securities and Exchange Commission and additional information from a market source.

The initial 3.742% fixed-rate period is for the first 10 years of the notes after which it converts to a floating rate based on SOFR plus a 225.7 bps margin. Payment of interest during the fixed-rate period is semiannual and during the floating-rate period is quarterly.

The notes can be redeemed starting Oct. 7, 2031 to the reset date, Jan. 7, 2032.

The notes priced with a 210 bps spread over Treasuries. Price talk on the tier 2 notes was reported in the Treasuries plus 235 bps area.

Deutsche Bank Securities Inc. is the bookrunner of the transactions.

BBVA Securities Inc., BMO Capital Markets Corp., CIBC World Markets Corp., Citigroup Global Markets Inc., Commerz Markets LLC, Daiwa Capital Markets America Inc., Intesa Sanpaolo SpA, Santander Investment Securities Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc., Standard Chartered Bank AG, TD Securities (USA) LLC, UBS Securities LLC and UniCredit Capital Markets LLC are the joint lead managers.

Citigroup Global Markets Inc. was a qualified independent underwriter and joint lead manager.

The banking and financial services company is based in Frankfurt.

Issuer:	Deutsche Bank AG, New York Branch
Amount:	$1.25 billion
Issue:	Subordinated tier 2 fixed-to-floating rate notes
Maturity:	Jan. 7, 2033
Bookrunner:	Deutsche Bank Securities Inc.
Joint lead managers:	Citigroup Global Markets Inc. (qualified independent underwriter); BBVA Securities Inc., BMO Capital Markets Corp., CIBC World Markets Corp., Citigroup Global Markets Inc., Commerz Markets LLC, Daiwa Capital Markets America Inc., Intesa Sanpaolo SpA, Santander Investment Securities Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc., Standard Chartered Bank AG, TD Securities (USA) LLC, UBS Securities LLC and UniCredit Capital Markets LLC
Senior co-managers:	Academy Securities Inc., Bancroft Capital LLC, Loop Capital Markets LLC, Mischler Financial Group Inc., R. Seelaus & Coo., LLC and Roberts & Ryan Investments, Inc.
Coupon:	3.742% initial rate; SOFR plus 225.7 bps in final year
Price:	Par
Yield:	3.742%
Spread:	Treasuries plus 210 bps
Call features:	At par starting Oct. 7, 2031 to the reset date, Jan. 7, 2032
Price talk:	Treasuries plus 235 bps area
Trade date:	Jan. 4
Settlement date:	Jan. 7
Ratings:	Moody’s: Ba1
	S&P: BB+
	Fitch: BBB-
Distribution:	SEC registered
Cusip:	25160PAG2

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