Germany’s Deutsche Bank intends to buy back about 5 billion euros of bonds.
In particular, the bank plans to buy euro-denominated unsecured bonds worth 3 billion euros (US$3.38 billion) and dollar-denominated bonds worth US$2 billion. The bank’s management decided on this repurchase to ease investors’ concerns over Deutsche Bank’s financial condition.
In the light of worries over a possible new crisis in the global economy, market participants do not trust the financial sector much, keeping negative sentiment towards bank stocks.
The released report on the fourth quarter and 2015 results only aggravated the situation with Deutsche Bank. According to the data, the bank fixed a net loss of 6.8 billion euros for 2015 in comparison with a net profit of 3.11 billion euros in the preceding year. Deutsche Bank logged its first annual loss since 2008.
Earlier, the mass media already hinted at the buy-back preparing by the German bank.
Deutsche Bank shares climbed by 8.8% in Frankfurt following the announcement of the bonds buy-back.
