Deutsche Bank raises double amount planned in bond issue

Deutsche Bank said Tuesday it had raised twice the amount planned in an issue of hybrid bonds, in three days of intense efforts by Germany's largest lender to raise its capital amid stress tests being carried out on European lenders. The lender said it had raised the equivalent of 3.5 billion euros ($4.8 billion) from the issue of hybrid bonds bonds denominated in euros, dollars and pound sterling. The issue of the bonds, which can be considered as capital for regulatory requirements, is aimed at shoring up the bank's financial reserves as required under tighter rules coming into force in Europe. Like many of its European counterparts, Deutsche Bank is under pressure to bolster its capital reserves. On Sunday, Deutsche Bank unveiled plans for the second-biggest capital increase in its history, issuing 8.0 billion euros in new shares. As part of a wider drive to set up a banking union as a bulwark against future financial crises, banks are being subjected to so-called stress tests and asset quality reviews by the European Central Bank this summer. Originally, Deutsche Bank had announced end-April that it was looking to raise 1.5 billion euros from the issue in the first tranche of hybrid bonds worth a total 5.0 billion euros by 2015. Deutsche Bank said it had decided to increase the volume given the very strong demand for the bonds. That strong demand enabled Deutsche Bank to pay significantly lower interest rates on the bonds than it had originally expected to, a source said.