By Jennifer Chiou
New York, June 24 - Deutsche Bank AG, London Branch has now registered to issue up to $250 million of PowerShares DB German Bund Futures exchange-traded notes due March 31, 2021 linked to the DB USD Bund Futures index and the DB 3-Month T-Bill index, according to a 424B2 filing with the Securities and Exchange Commission.
At inception on March 22, Deutsche priced $4 million of the notes at par of $20 and has thus far $5 million of the ETNs.
The registered amount is an increase from the original $80 million that was to be sold from time to time.
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.
The payout upon redemption or at maturity will be the repurchase value, which will be the current principal amount times the applicable index factor minus a fee of 0.5% per year.
The index factor on any valuation date will equal one plus the T-bill index return plus the Bund Futures index return. The initial level used to determine the return of each index will be the level of that index on the opening day of the current month.
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 minus the 0.5% annual fee.
If the repurchase value ever falls to zero, the notes will be accelerated and investors will lose their entire investments.
The notes have been approved for listing on the NYSE Arca under the symbol "BUNL."
Deutsche Bank Securities Inc. is the underwriter.
| Issuer: | Deutsche Bank AG, London Branch
|
| Issue: | PowerShares DB German Bund Futures exchange-traded notes
|
| Underlying indexes: | DB USD Bund Futures index and the DB 3-Month T-Bill index
|
| Amount: | $5 million priced of up to registered $250 million
|
| Maturity: | March 31, 2021
|
| Coupon: | 0%
|
| Price: | Par of $20
|
| Payout at maturity: | Current principal amount times index factor minus fee of 0.5% per year; index factor will be T-Bill index return plus Bund Futures index return
|
| Put option: | At any time, subject to minimum of 50,000 notes and fee of up to $0.03 per security; payout determined in same manner as at maturity
|
| Call option: | In whole at any time, with payout determined in same manner as at maturity; notes will be automatically called if repurchase value ever hits zero, and payout will be zero
|
| Initial level: | 130.7511 for futures index, 236.8584 for T-Bill index
|
| Pricing date: | March 22 ($4 million); $1 million since inception
|
| Settlement date: | March 25
|
| Underwriter: | Deutsche Bank Securities Inc.
|
| Fees: | Up to 0.15%
|
| Listing: | NYSE Arca: BUNL
|
| Cusip: | 25154W506
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