Deutsche Bank plans rebalancing tracker notes linked to four indexes

By Jennifer Chiou

New York, Feb. 11 - Deutsche Bank AG, London Branch plans to price 0% rebalancing tracker notes due Feb. 18, 2014 linked to a basket of indexes that includes the Deutsche Bank Commodity Booster-Dow Jones-UBS 14 TV Index Excess Return, the Deutsche Bank Commodity Harvest-10 USD ERAC Index, the Deutsche Bank Equity Mean Reversion Alpha index (Emerald) and the Deutsche Bank Fed Funds Total Return Index, according to an FWP with the Securities and Exchange Commission.

Investors will have an equal notional exposure to each basket index on the trade date, and the total index notional exposure will be the sum of the exposure for each of the basket indexes.

The basket will be rebalanced quarterly by resetting the notional exposure to each of the Booster, Harvest and Emerald indexes to again be equal, but at a level taking into account the average performance of these three components.

The notional exposure of each index is reduced by an adjustment factor, which is a flat 0.9925% for the Fed Funds and 1.16% per year for each of the remaining indexes.

The payout at maturity will be par plus the total notional exposure plus any additional index amount less the adjustment factor. The additional amount will be added if the index notional exposure for an index on the relevant observation date is greater than zero. On any quarterly observation date that is not the redemption trigger valuation date, the notional exposure for the Fed Funds is par. Otherwise, it will equal the Fed Funds return.

The notes will be called at par plus the total notional exposure of the basket if the basket level falls below 40, the redemption trigger level.

The notes (Cusip: 2515A13K5) will price on Feb. 15 and settle on Feb. 18.

Deutsche Bank Securities Inc. is the agent.

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