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UPDATE 1-Deutsche Bank to issue 687.5 mln new shares at 11.65 euros each
March 19, 2017 / 2:37 PM / 6 months ago

UPDATE 1-Deutsche Bank to issue 687.5 mln new shares at 11.65 euros each

* Deutsche Bank says subscription price 11.65 a share

* News shares issued from authorised capital

* New shares have full dividend entitlement (Adds detail, background)

FRANKFURT, March 19 (Reuters) - Deutsche Bank on Sunday announced it would issue 687.5 million new shares to raise 8 billion euros ($8.59 billion) to fund a strategy overhaul in what amounts to its fourth capital increase since 2010.

Germany’s biggest lender had previously said it would wait until global bank capital rules were finalised before setting out how it intends to turn its business around.

But with regulators delaying the so-called Basel rules and markets buoyant, Deutsche opted for a capital hike to pay for hefty legal penalties including those stemming from its sale of toxic U.S. mortgage debt and to free up cash for new investments.

Deutsche Bank on Sunday said the subscription price for new shares would be set at 11.65 euros per share, with the subscription ratio set at 2:1.

The subscription period will run from March 21 until April 6 and the new shares will have same dividend entitlement as existing shares, the company said.

Deutsche Bank is expected to publish the prospectus for the rights issue on Monday.

This month it presented a new strategy that includes floating its asset management business and scrapping plans to sell retail unit Postbank.

$1 = 0.9310 euros Reporting by Edward Taylor and Arno Schuetze; editing by Jason Neely

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