Deutsche Bank enjoyed strong support from its debt investors, which allowed the bank to refinance at very attractive spreads. In 2014, Deutsche Bank issued a total of € 44.1 billion in debt instruments at an average spread of 45 bps over the relevant floating index (for example, LIBOR) with an average tenor of 4.8 years. Thereof, € 22 billion were benchmark issuances, meeting certain minimum size requirements. Another € 22 billion were raised via targeted retail issuance and other private placements.
The most significant transactions in 2014 included the Additional Tier 1 securities issued in May and November 2014. With these two issuances, the bank substantially completed its target issuance for the end of 2015 of € 5 billion in CRD 4-compliant Additional Tier 1 capital. Deutsche Bank’s inaugural € 3.5 billion Additional Tier 1 benchmark issue in May was split into three tranches. The second issue in November was a US$ 1.5 billion perpetual, non-callable 10-year bond with a 7.5 % coupon.
Overall Deutsche Bank’s issuance activities are well diversified across markets, instruments, currencies and types of investors. At the end of December 2014, 76 % of the bank’s total funding comes from the most stable funding sources, such as retail and transaction banking deposits, capital markets issuance and equity.