Deutsche Bank Takes Hit From Metals Deal

Last summer, Deutsche Bank AG trumpeted a deal to strengthen the finances of Europe’s largest zinc smelter, Nyrstar NV. Less than a year later, the Belgian company is undergoing a massive debt restructuring, and the $150 million financing structure set up by Deutsche Bank is in line for losses of as much as 70 percent, Bloomberg News reported. Although relatively small in absolute terms, the losses are a black eye for Deutsche Bank, one of the leading financiers of the natural resources industry. Nyrstar racked up massive debts during an ill-fated foray into mining around the start of the decade. Deutsche Bank played a key role, becoming one of the struggling company’s leading financiers. In addition to bonds, Nyrstar raised money from banks and traders through prepayments for future supplies of metals such as zinc, copper and silver. Read more