Deutsche Bank has launched plans to raise 8 billion euros ($11 billion) in new capital with the Qatari royal family a major new investor. The bank had already raised 10.2 billion euros in equity in 2010 and a further 3 billion euros in 2013, but that was not enough to assuage investor concerns about its capital position as it faces increased regulatory demands. The cash injection gives the bank the wherewithal to expand investment banking, especially in the United States. The fun infusion will also help the bank build up its regulatory ratios as the European Central Bank runs the region’s top banks through rigorous checks before it becomes the euro zone’s leading banking regulator in November. A stake worth 1.75 billion euros has already been placed with an investment vehicle owned and controlled by Sheikh Hamad Bin Jassim Bin Jabor Al-Thani of Qatar, Deutsche Bank said in a statement. It plans to raise another 6.3 billion euros in a rights issue to existing shareholders. The Qatari investor has not requested a seat on the board, nor were any special fees offered to the investor. The bank said it would focus on an ‘accelerated growth program’ by hiring top bankers in the United States, investing some 200 million euros over three years on technology improvements to its retail operations in Germany and Europe, and will hire up to 100 advisers to support its biggest corporate clients. The bank also aims to expand its wealth management team in key emerging markets by 15% over three years.
