High coupons in the early years, a transparent decreasing structure and full principal repayment at maturity. These are the distinctive features of the step-down fixed rate callable bonds, issued on 26 March 2026 with maturity 26 March 2038 and listed on the Italian Stock Exchange – Euro TLX. Deutsche Bank offers them in two currency versions – euro and US dollar – to respond to different investment profiles, with initial returns of 7.00% and 9.50% gross per annum respectively.
Step-down and callable, how these bonds work
The term step-down indicates that the annual coupon – paid every 26 March starting from 2027 – does not remain constant for the entire duration of the security, but progressively decreases according to a predefined progression communicated upon subscription. The investor knows precisely, already at the time of purchase, the exact amount of each future coupon: no variables linked to the markets and no uncertainty about the expected cash flow.
The term callable refers instead to the option reserved for the issuer to repay the capital early, exercisable annually on each coupon payment date starting from 2028 and until natural maturity. In case of early redemption, the investor receives 100% of the nominal value together with the last accrued coupon – without any penalty on the capital – but without any residual future coupons.
Euros or dollars? The characteristics of the two versions compared
| Characteristic | EUR version | USD version |
|---|---|---|
| Nominal amount | 1,000 EUR | $2,000 |
| Coupon Years 1–2 | 7.00% | 9.50% |
| Coupon Years 3–4 | 5.00% | 6.00% |
| Coupon Years 5–8 | 3.00% | 4.00% |
| Coupon Years 9–12 | 2.00% | 2.50% |
| Issue date | March 26, 2026 | March 26, 2026 |
| Expiry date | March 26, 2038 | March 26, 2038 |
| Refund upon expiry | 100% of the nominal | 100% of the nominal |
How much is collected each year
In both versions, the concentration of the highest return is expected in the initial stage of the investment. On the euro version, on a nominal amount of 1000 EUR, the gross annual coupons amount to €70 in the first two years, €50 in years 3–4, €30 in years 5–8 and €20 in years 9–12.
On the dollar version, on a nominal amount of 2,000 USD, the gross annual coupons are respectively $190, $120, $80 and $50. In both cases, the coupon plan is known and immutable from the day of subscription.
100% capital repayment, what does the bond guarantee at maturity
Upon maturity – or on any early redemption date exercised by Deutsche Bank – the investor receives 100% of the nominal amount: 1000 EUR for the euro version, 2000 USD for the dollar version. This integral protection clearly distinguishes the product from more speculative instruments, limiting the main risk to the sole possibility of issuer default.
Deutsche Bank AG presents Investment Grade ratings assigned by the three main international agencies: A1 for Moody’s, A for S&P and A for Fitch, confirming a largely contained credit risk on the global financial market.
Investing in dollars, opportunities and exchange rate risk to consider
The USD version introduces an additional variable compared to the euro version, consisting of the exchange rate risk. Since both the coupon payments and the principal repayment take place in US dollars, for an investor with assets and expenses in euros the final value will depend on the movement of the EUR/USD rate at the time of each payment.
From a currency diversification perspective, this feature can also be an opportunity, especially for those who intend to build or strengthen a dollar component in their portfolio, while aiming for more generous initial returns compared to the euro version, particularly in the first years.
Callable early repayment, when it can happen and what it means for the investor
The early repayment option deserves attention. Deutsche Bank will tend to exercise this option especially when market rates fall below the expected coupons – i.e. exactly when it would be more advantageous for the investor to continue collecting them.
It is a structural asymmetry common to all callable bonds, which does not affect the certainty of full repayment of the nominal amount but which deserves consideration in financial planning. It should also be borne in mind that any early redemption or repurchase of the Product – including through market-making activities – is subject to prior approval from the relevant supervisory authority, and such approval may not be granted or may be insufficient to ensure continued trading on the secondary market.
Listing on the Italian Stock Exchange Euro TLX, how to sell the security before expiry
Both bonds are listed on the Italian Stock Exchange – Euro TLX, guaranteeing in principle the possibility of trading the securities on the secondary market before the 2038 maturity. But it should be considered that the liquidity of the secondary market is not guaranteed: in market conditions that are not fully efficient, there may be longer than expected disinvestment times or a significant difference between the sale price and the fair value of the security. However, the quotation is an important element of accessibility compared to non-negotiable products, with a potential way out in the event of changing financial needs.
The main risks to know before investing
Like any financial instrument, these bonds also involve a series of risks that the investor is required to evaluate carefully. The issuer risk is the most direct: in the event of insolvency of Deutsche Bank AG, the investor could suffer a partial or total loss of the capital invested.
This is accompanied by the bail-in risk, foreseen by European banking resolution legislation: the competent authorities have the power to write down or convert the liabilities of a bank in difficulty into equity securities, with possible repercussions on the entire nominal value of the investment. The bonds are in fact structured to meet the minimum requirements for own funds and eligible liabilities (MREL) required by international and European regulations on bank resolution.
In terms of market risks, the value of the bond during its life can vary depending on multiple factors: the creditworthiness of the issuer, the time remaining to maturity and the levels of interest rates in the reference currency, which in turn are influenced by the general economic, financial and political context.
The risk of inflation should not be overlooked either: if the inflation rate were to be higher than the coupon yield in the final stages of the bond, the real value of the coupons and the repaid capital could be lower than the nominal value. Finally, please note that Deutsche Bank AG does not act as an investment advisor or manager and does not assume any fiduciary duty towards investors.
Who they are aimed at, the profile of the ideal investor
Both instruments are aimed at investors with a moderate risk appetite, who favor the certainty of the coupon flow and the protection of capital over speculation. The euro version, with a nominal value of 1000 euros, is accessible to a wide range of retail investors and lends itself to bond portfolio diversification strategies in a context of rates potentially destined to fall.
The dollar version, with a nominal value of 2000 dollars and an initial yield of 9.50%, is aimed in particular at those who wish to combine the euro component with currency exposure in US dollars, while at the same time enjoying an even higher coupon flow – in full awareness of the associated exchange rate and market risks.
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