Indicative Termsheet 8y DB Note with Quarterly Coupons

Transcription

1 1 Target Market (TM) Investors who have a diversified investment portfolio and are looking for: - a core, income product - a USD investment and as a Europe based investor, Where the product is denominated in a currency other than the investor s reference currency, changes in rates of exchange may have an adverse effect on the value of the product. The investor bears the currency risk associated with investing in USD denominated product - a fixed rate of return for [5.00%] for the first 2 years followed by variable rate of return in last 6 years linked to the 3-month Libor rate + [0.40%] - a secondary market to provide liquidity where necessary, subject to normal market conditions - An investment subject to Deutsche Bank AG credit risk in order to receive a higher return compared to cash products through exposure to the USD rates markets. Target Market investors will have a Medium attitude to risk for this product and have at least a Medium level of investment experience. Potential investors should be able to evaluate the rates markets and issuer risk of Deutsche Bank over an 8 year time horizon and are reasonably confident they will not need to access the invested capital for the duration of the notes. Prospective investors understand that unwind costs for longer-dated instruments will be higher than for shorter-dated investments and that a liquid secondary market for the Notes is not guaranteed. Prospective investors also understand that the Coupon Rate is a function of the tenor of the Notes, and that similar Notes with shorter tenors would in most circumstances have less attractive Coupon Rates. Prospective investors should consider the returns over the life of the note, not just during the fixed coupon period The investor is taking the view that the 3 months USD Libor interest rate will rise during the last 6 years of the life of the product (with a Floor at 0.00%p.a.). The current level of US 3 Month Libor is 1.20% Attitude to risk Low A. Capital preservation with little prospect of capital growth (conservative with minimal fluctuation in value, income only) B. Capital preservation with limited capital growth (low fluctuation in value, limited capital growth) Medium C. Capital preservation with moderate capital growth (balance of appreciation and income through moderate risk appetite) D. Moderate capital growth (more pronounced appetite for risk, maximise overall return with moderate fluctuations in value) E. Medium capital growth (more pronounced appetite for risk, maximise overall return with medium fluctuations in value) Level of understanding / experience of average Target Market investor for Structured Products Low vanilla investment products such as cash equities, vanilla sovereign or corporate bonds, with no or little experience in structured products. Medium structured products with (i) benchmark indices, cash equities, commodities, FX rates or interest rates as the underlying asset class and/or (ii) lightly structured payout strategies e.g. autocallables.

2 2 High F. Maximise end capital sum, accepting high short term volatility and fluctuations in value (enhanced return through moderate to high risk products) High structured products with (i) alternative investments as the underlying asset class including credit, hedge fund, emerging market, asset backed securities, private equity or proprietary indices and/or (ii) a complex structured payout strategies e.g. leveraged and short strategies. Product Description & Rationale Issuer of the Note is Deutsche Bank AG. The Notes have a maturity of 8 years and pay a coupon of [5.00%] for first two years followed by 3-month Libor rate linked coupon + [0.40%], subject to minimum coupon of 0.00% p.a. Indicative Terms and Conditions Issuer Deutsche Bank AG, London (Ratings: Moody s Baa2, Standard & Poor s BBB+) Issue Volume [30,000,000] USD (Up to USD 150,000,000) Denomination USD 2,000 Issue Price 100% Commissions paid to the Distributor Up to [3.00%], according to market conditions Subscription Period [ASAP 25 July 2017] Issue Date [28 July 2017] Maturity Date [28 July 2025] Coupon Rate [5.00%] p.a. in respect of each Coupon Accrual Period ending before and including [28 July 2019] (Max( (3-month Libor +[0.40%], 0.00%) in respect of each Coupon Accrual Period commencing after 28 July 2019 and ending on Maturity Date 3-month Libor Coupon Accrual Dates 3 months USD LIBOR observed on REUTERS page LIBOR01 at 11:00am London time 2 London Business Days prior to the beginning of each Coupon Period. If such rate does not appear on the above pages, the rate shall be as determined by the Calculation Agent in accordance with the 2006 ISDA Interest Rate and Currency Derivative Definitions. 28 July, 28 October, 28 January, 28 April each year, commencing on Issue Date and ending on the Maturity Date. Coupon Accrual Dates shall not adjust in accordance with the Business Day Convention. Coupon Payment Dates 28 July, 28 October, 28 January, 28 April each year, commencing on 28 October 2017 and ending on the Maturity Date. Coupon Payment Dates will adjust in accordance with Business Day Convention. Coupon Period The first coupon period starts on the Issue Date (including) and ends on the first Coupon Accrual Date (excluding). The second coupon period starts on the

3 3 first Coupon Accrual Date (including) and ends on the second Coupon Accrual Date (excluding). Each subsequent coupon period starts on the next following Coupon Accrual Date (including) and ends on the successive Coupon Accrual Date (excluding). Coupon Amount The coupon amount will be in USD paid and will be calculated per Note in the coupon payment period as the following: Coupon Amount = Coupon Rate x Denomination (Act/360, Following, unadjusted) Business Days Target2, London, New York Redemption at Maturity 100% Calculation/Paying Agent Expected Listing Market Making Clearing Agent Settlement Currency ISIN WKN Deutsche Bank AG, London Application will be made to list the Notes on Euro TLX. There can be no assurance that such listed will be granted. Subject to normal market conditions, Deutsche Bank AG is expected to continuously quote on bid/offer prices for this Note without being legally obliged to do so. Euroclear & Clearstream, Luxembourg USD XS DB1Y4C Risk Factors Credit Risk Liquidity Risk Currency Risk Product Risk The investor bears the credit risk of Deutsche Bank AG as Issuer of the Product. The Product constitutes unsubordinated, unsecured contractual obligations of the Issuer and ranks pari passu in all respect with all other unsubordinated, unsecured contractual obligations of the Issuer. The insolvency of the Issuer may lead to a partly or total loss of the invested capital. A liquid secondary market for the Notes is not guaranteed. The Notes may trade significantly below their issue price and the bid/offer spread may be significant Whenever the currency in which the product is denominated is different from the reference currency of the investor, the investor bears the risk associated with change in exchange rate between product currency and reference currency. An investment in the Notes involves risks. These risks may include, among others, equity market, bond market, foreign exchange, interest rate, market volatility and economic, political and regulatory risks and any combination of these and other risks. Prospective purchasers should be experienced with respect to transactions in instruments such as the Notes and in the underlying asset or other basis of reference for the Notes (the Underlying ). Prospective purchasers should understand the risks associated with an investment in the Securities and should only reach an investment decision after careful

4 4 consideration, with their professional independent financial, legal, tax, accounting and other advisers, of (i) the suitability of an investment in the Notes in the light of their own particular financial, tax and other circumstances; (ii) the information set out in this document and (iii) the Underlying. The Notes may decline in value and investors should be prepared to sustain a total loss of their investment in the Notes. An investment in the Notes should only be made after assessing the direction, timing and magnitude of potential future changes in the value of the Basket Constituents, and/or the in the composition or method of calculation of the Basket Constituents, as the return of any such investment will be dependent, inter alia, upon such changes. More than one risk factor may have simultaneous effect with regard to the Notes such that the effect of a particular risk factor may not be predictable. In addition, more than one risk factor may have a compounding effect which may not be predictable. No assurance can be given as to the effect that any combination of risk factors may have on the value of the Notes.

5 5 Important Notice Deutsche Bank AG The document is current as of the initial issue date of the securities (Issue Date). The complete terms and conditions of the Financial Instruments are included in the respective Offering Circular, copies of which are available upon request and free of charge from Deutsche Bank AG, GME, X-markets, Große Gallusstr , Frankfurt, Telephone: 069 / , Telefax: 069 / or could be downloaded under The above information does not constitute the provision of investment advice; its sole purpose is the description of the Financial Instruments or transactions. Any investment decision should be based on the Offering Circular. Any views expressed reflect the current views of Deutsche Bank AG which may change without notice. Although the above information has been taken from sources which are believed to be accurate, no warranty or representation is made as to its correctness, completeness and accuracy. All prices listed are subject to confirmation. They have been listed for information purposes only and do not indicate tradable prices. Past performance is not indicative of future results. As described in the respective Offering Circular, there are restrictions on the distribution of the Financial Instruments in certain jurisdictions. In particular, the Financial Instruments may not be offered or sold in the United States, to U.S. persons or U.S. residents. This document and the information contained therein may only be distributed and published in jurisdictions in which such distribution and publication is permitted. Any direct or indirect distribution of this document into the United States, the United Kingdom, Canada or Japan, or to U.S. persons or U.S. residents, is prohibited.