Deutsche Bank share price bounces as it unveils plans to buy back more than $5bn of its own debt

 
Emma Haslett
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Deutsche Bank Shares Soar
Deutsche Bank shares have been hit hard in recent days (Source: Getty)

That's one way to reassure markets.

After it took a hammering during turbulence on the markets over the past few days, Deutsche Bank has reached a decision: it will buy back more than $5bn of its own debt.

In a statement today, it announced a public tender offer to purchase certain series of euro-denominated debt worth €3bn, and dollar-denominated debt worth $2bn. It said its "strong liquidity position allows it to repurchase these securities without any corresponding change to its 2016 funding plan".

The news comes days after it was forced to issue a reassurance to investors that it would be able to make debt repayments due in April, saying its payment capacity was approximately €1bn - "sufficient to pay additional tier one (AT1) coupons of approximately €350m (£271.6m) on 30 April 2016".

On Tuesday, chief executive John Cryan wrote an open letter to staff, reassuring them that the bank was "absolutely rock-solid".

"The market [has] expressed some concern about the adequacy of our legal provisions but I don’t share that concern. We will almost certainly have to add to our legal provisions this year but this is already accounted for in our financial plan," he wrote.

Shares in the bank rose more than 10 per cent to €15.06 in early afternoon trading. So far this year they have fallen more than 33 per cent.
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