Deutsche Bank to price two zero-coupon notes linked to unequally weighted basket of indexes

By Sheri Kasprzak

New York, Oct. 9 – Deutsche Bank AG, London Branch announced Thursday that it will offer two separate notes linked to unequally weighted baskets of indexes, according to filings with the Securities and Exchange Commission.

The issuer plans to price 0% leveraged notes linked to the Euro Stoxx 50 index, the FTSE 100 index, the Tokyo Stock Price index, the Swiss Market index and the S&P/ASX 200 index.

The Euro Stoxx 50 has a 37% weight, the FTSE 100 a 23% weight, the Tokyo Stock Price a 23% weight, the Swiss Market a 9% weight and the S&P/ASX 200 an 8% weight.

Those notes, which will have a 24- to 27-month term, will pay par plus 1.31 to 1.51 times the basket return assuming the return is positive. Investors will be exposed to losses if the return is negative.

Similar deal ahead

In addition to the leveraged notes, the issuer will offer 0% buffered notes linked to the same indexes with the same weights.

The notes, however, will have a 44- to 47-month duration.

Those notes will pay at maturity par plus 1.00 to 1.15 times the basket return, assuming a positive return. If the basket return is zero or negative but at least negative 20%, the investors receive par at maturity. If the basket return is less than negative 20%, investors lose 1.25% for every 1% decline beyond 20%.

Deutsche Bank Securities Inc. is the underwriter for both issues.

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