Deutsche Bank to price knock-out notes linked to five Asian indexes

By Angela McDaniels

Tacoma, Wash., July 5 - Deutsche Bank AG, London Branch plans to price 0% knock-out notes due Jan. 15, 2014 linked to a basket of five indexes and their related currencies, according to an FWP filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.

The basket consists of the Kospi 200 index with 25% weight, the Hang Seng index with 25% weight, the Hang Seng China Enterprises index with 21% weight, the MSCI Taiwan index with 20% weight and the MSCI Singapore index with 9% weight.

The related currencies are the Korean won for the Kospi 200, the Hong Kong dollar for the Hang Seng indexes, the Taiwan dollar for the MSCI Taiwan index and the Singapore dollar for the MSCI Singapore index.

The initial basket level is 100. The final basket level will be 100 multiplied by the sum of the weighted component returns for the basket indexes. The component return for each basket index will be the product of (a) its final level divided by its initial level multiplied by (b) the final spot rate of its related currency relative to the U.S. dollar divided by its initial spot rate.

A knock-out event occurs if the final basket level has decreased, as compared to the initial basket level, by more than 22%.

If a knock-out event does not occur, the payout at maturity will be par plus the basket return, subject to a minimum payout of par.

If a knock-out event occurs, investors will be fully exposed to the basket's decline.

The notes are expected to price July 6 and settle July 11.

The Cusip number is 2515A1KT7.

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