Tue, Jan 29, 2019 - Page 10 News List

Deutsche Bank to get additional funds from Qatari source

Bloomberg

Deutsche Bank AG has secured a commitment for additional investment from Qatar as the troubled German lender seeks to bolster its finances, people with knowledge of the matter said.

The investment is likely to be made through the Qatar Investment Authority, the country’s sovereign wealth fund, the people said, asking not to be identified because the talks are private.

Two other investment vehicles, controlled by members of the Qatari royal family and other prominent Qatari politicians, already own a stake.

While the discussions are at an advanced stage, no final agreement has been reached, the people said.

The timing and the size of the investment were not clear.

A Deutsche Bank spokesman declined to comment. Qatar Investment Authority representatives did not respond to requests for comment.

The German government has been moving to fix Deutsche Bank as shares of the lender have slumped by almost half in the past year. The government is studying ways to make it easier for the lender to merge with Commerzbank AG, while also considering other possibilities such as seeking fresh investment from existing or new shareholders.

Deutsche Bank, which has been trying to regain its footing after years of restructuring in the aftermath of the global financial crisis, faces broadening US scrutiny as a leading Republican lawmaker joined Democratic colleagues in questioning the lender’s steps to combat money-laundering amid reports that its US unit might have been a key conduit for dirty cash.

The Qatar Investment Authority, which manages US$320 billion, is known for its big-name investments and has purchased stakes in companies including Rosneft PJSC and Volkswagen AG.

Qatar Investment Authority chairman Sheikh Mohammed bin Abdulrahman Al Thani in an interview at the World Economic Forum in Davos, Switzerland, said that Deutsche Bank is among the major German companies the sovereign wealth fund is talking to about potential stake purchases.

The Qatar Investment Authority is looking “at different sectors” in Germany, said the chairman, who is also deputy prime minister and minister of foreign affairs of gas-rich Qatar.

“Financial services is among them,” as are infrastructure and industrials, he said.

Last year, Qatar said its projected investment of 10 billion euros (US$11 billion) in the German economy over the next five years would be its largest single investment in the country to date.

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