HG bonds: Deutsche Bank places $2.5B of preferred notes; terms

Deutsche Bank AG - New York Branch today completed a $2.5 billion, two-part offering of two-year senior preferred notes due Nov. 8, 2023, across a floating-rate tranche at 50 basis points over the secured overnight financing rate and 0.962% fixed-rate notes at T+52.

The German bank's New York branch last tapped the market in May when it placed a $2.5 billion offering across 0.898% senior preferred notes due May 2024 at T+60 and 3.035% senior non-preferred notes due May 2032 at T+148.

The bank marketed the new notes under positive ratings outlooks at all three major agencies.

In August, Moody's upgraded its ratings for Deutsche Bank by one notch, including a boost to its senior unsecured rating to A2, under a positive outlook. Moody's initiated an upgrade review in May, citing "swift and pronounced progress towards its objective of achieving a more balanced and sustainable business model," following a strategic overhaul of the business in summer 2019.

"The positive outlook on the bank's long-term deposit and senior unsecured debt ratings reflects the possibility that DB's strong and steady progress in rectifying its business challenges could result in it achieving a sustained and improved level of stability in its existing financial profile, that in time would support consideration of a further upward rating shift," Moody’s said in August.

In September, Fitch upgraded its ratings, including its issuer default rating, to BBB+ from BBB and senior preferred rating to A- from BBB+. The outlook remained positive at the higher grades.

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