Deutsche Bank to tap investors for cash
Germany’s largest lender, Deutsche Bank, is set to embark on a €9 billion (£7.4 billion) rights issue to strengthen its balance sheet.
Shares in the bank were down more than 5% in pre-market trade following the announcement.
According to analysts, the cash call is set to be the first in a series of fundraisings by banks throughout the world.
“This reinforces worries about the health of European financial institutes,” Close Brothers Seydler wrote.
The National Bank of Greece launched a rights issue earlier this week, and more lenders in Greece, Spain, Portugal and Italy are expected to follow suit.