Deutsche Bank stock jumps after offer to buy back $5.4B in debt

By Ed Adamczyk  |  Feb. 12, 2016 at 10:18 AM
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FRANKFURT, Germany, Feb. 12 (UPI) -- Deutsche Bank announced an offer to buy back $5.4 billion of debt, in an effort to improve investors' confidence in its liquidity, as well as its stock value.

The statement at its Frankfurt headquarters Friday afternoon caused its stock to rise10 percent, to $17.01, in premarket trading in New York. Prior to the jump, Deutsche Bank's stock had fallen 35 percent this year.

The buyback will include up to 3 billion euros ($3.4 billion) in euro-denominated securities and $2 billion in dollar-denominated securities. By repurchasing the debt below its issue price, the bank "realizes a profit," Marcus Schenck, Deutsche Bank finance chief, said in a statement.

The bank previously said it held 215 billion euros ($242.1 billion) in liquidity reserves. The stock has been rocked by concerns about the bank's restructuring, and its ability to make optional interest payments on some of its riskiest loans.

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