By Angela McDaniels
Tacoma, Wash., April 15 - Deutsche Bank AG, London Branch priced $5 million of 0% DB Agriculture Long exchange-traded notes due April 1, 2038 linked to the Deutsche Bank Liquid Commodity Index - Optimum Yield Agriculture, according to a 424B2 filing with the Securities and Exchange Commission.
The index is designed to reflect the price changes in a basket of corn, soybeans, sugar and wheat futures. The return on the index is derived by combining the returns on the DB 3-Month T-Bill index and the Deutsche Bank Liquid Commodity Index - Optimum Yield Agriculture Excess Return. These are referred to as the T-Bill subindex and the agriculture subindex, respectively.
The notes are putable at any time, subject to a minimum of 200,000 notes. Investors will be charged an additional fee of up to $0.03 per note.
Upon redemption or at maturity, the payout will be equal to the then-current principal amount plus the index factor on the valuation date minus a fee equal to 0.75% per year.
The index factor on each day will be equal to sum of the T-Bill subindex return plus the agriculture subindex return. The principal amount is initially $25. It will be reset each month and will equal the previous current principal amount plus the index factor on the monthly valuation date minus the 0.75% annual fee.
If the index factor is zero on any trading day, the notes will be accelerated and investors will lose their entire investments.
The company has registered to sell up to $500 million of the notes.
The notes have been approved for listing on the NYSE Arca under the symbol "AGF."
Deutsche Bank Securities Inc. is the underwriter.
| Issuer: | Deutsche Bank AG, London Branch
|
| Issue: | DB Agriculture Long exchange-traded notes
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| Underlying index: | Deutsche Bank Liquid Commodity Index - Optimum Yield Agriculture
|
| Amount: | $5 million
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| Maturity: | April 1, 2038
|
| Coupon: | 0%
|
| Price: | Par of $25
|
| Payout at maturity: | The current principal amount plus the index factor minus a fee of 0.75% per year; index factor will equal the sum of the return on the DB 3-Month T-Bill index plus the return on the Deutsche Bank Liquid Commodity Index - Optimum Yield Agriculture Excess Return
|
| Put: | At any time, subject to a minimum of 200,000 notes and a fee of up to $0.03 per note; calculated in the same manner as payout at maturity
|
| Call: | Automatically if the index factor ever hits zero; payout will be zero
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| Initial index levels: | 131.645191 for agriculture subindex; 234.218257 for T-Bill subindex
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| Pricing date: | April 14
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| Settlement date: | April 17
|
| Underwriter: | Deutsche Bank Securities Inc
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| Listing: | NYSE Arca: AGF
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