Deutsche Bank plans market contribution notes tied to Liquid Commodity

By Toni Weeks

San Luis Obispo, Calif., July 15 - Deutsche Bank AG, London Branch plans to price 0% market contribution securities due July 21, 2014 linked to the Deutsche Bank Liquid Commodity Index - Mean Reversion Total Return, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay interest at a rate equal to the greater of one-month Libor less 25 basis points and zero. Interest is payable monthly.

The payout upon redemption or at maturity will be par plus the index return, which could be positive or negative, minus an adjustment factor of 0.85% per year and minus the TBill return. Investors will lose some of their investment if the index does not appreciate sufficiently over the term of the notes to offset the effects of the adjustment factor and TBill return.

The notes are putable until July 16, 2014.

The index is composed of futures contracts on heating oil, crude oil, aluminum, gold, wheat and corn. It systematically adjusts their weightings to assign higher weights to those commodities trading in a lower price range and lower weights to those commodities trading in a higher price range, in each case based on the ratio of their one-year to five-year moving average prices.

Deutsche Bank Securities Inc. and Deutsche Bank Trust Co. Americas are the agents.

The notes (Cusip: 25152RDV2) are expected to price July 15 and settle July 18.

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