Deutsche Bank plans five-year market contribution securities linked to DB Liquid Alpha index

By E. Janene Geiss

Philadelphia, May 28 - Deutsche Bank AG, London Branch plans to price 0% market contribution securities due July 7, 2014 linked to the Deutsche Bank Liquid Alpha USD 5 Total Return index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be putable and callable on July 9, 2010, July 8, 2011, July 10, 2012 and July 9, 2013.

The payout upon redemption or at maturity will be par plus the index return minus the adjustment factor, which will lower the payout by 1.75% for each year the securities remain outstanding.

Because of the adjustment factor, investors will lose some of their principal at maturity if the index does not increase by at least 9.6%.

The index is designed to reflect the combined return of a number of constituent indexes selected from a pool of Deutsche Bank or Standard & Poor's indexes that are categorized into one of five asset classes: equity, rates, commodities, foreign exchange and cash. The constituent indexes are selected using a model that identifies the portfolio that, if the index had been comprised of that portfolio over the prior 60 business day period, would have generated the highest level of annualized return at a predetermined level of volatility.

The notes are expected to price June 30 and settle July 6.

Deutsche Bank Securities Inc. and Deutsche Bank Trust Co. Americas are the agents.

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