Deutsche Bank plans PowerShares DB 3x Inverse Japanese Govt Bond ETNs

By Angela McDaniels

Tacoma, Wash., July 25 - Deutsche Bank AG, London Branch plans to price 0% PowerShares DB 3x Inverse Japanese Govt Bond Futures exchange-traded notes due 2021 linked to the DB USD Inverse JGB Futures index and the DB 3-Month T-Bill index, according to a 424B2 filing with the Securities and Exchange Commission.

The securities offer exposure to the dollar value of the returns on a notional short position in 10-year Japanese government bond futures.

The bank plans to issue up to $80 million of the notes. It will issue $4 million of the notes at par of $20 on the inception date, which has not been set, and the remainder from time to time at varying prices.

The payout at maturity or upon redemption will be the repurchase value, which will be the current principal amount multiplied by the index factor multiplied by the fee factor.

The index factor is one plus the T-Bill index return plus 300% of the Inverse JGB index return. The initial level used to determine the return of each index will be the level of that index on the first day of the current month.

The fee factor is one minus the product of 0.95% per year multiplied by the day count fraction. The day count fraction equals the number of days elapsed from the monthly reset date to the following monthly valuation date divided by 365.

The principal amount is initially $20. It will be reset each month and will equal the previous current principal amount times the index factor on the monthly valuation date multiplied by the fee factor.

The notes are putable and callable at any time. The put option is subject to a minimum of 50,000 notes, and investors may be charged a fee of up to $0.03 for each security repurchased.

If the repurchase value ever falls to zero, the notes will be accelerated and investors will lose their entire investments.

The bank plans to list the notes on the NYSE Arca under the symbol "JGBD."

Deutsche Bank Securities Inc. is the underwriter. Invesco Aim Distributors, Inc. will market the securities under its PowerShares brand.

The Cusip number is 25154P188.

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