Deutsche Bank (NYSE: DB) has just announced that it is looking to undergo a business reorganization while also raising major capital. The German global banking and financial services company recently announced that it plans to raise €8 billion (approximately P427.1 billion). Read on to learn more about this development.

Here are the three things to know about Deutsche Bank's plans to raise €8-B as well as undergo restructuring:

1. Deutsche Bank plans to raise €8 billion by issuing new shares in a rights issue.

According to Deutsche Bank, it plans to raise as much as €8 billion (approximately P427.1 billion) by issuing 687.5 million new shares in a right issue. The subscription period is expected to be published between March 21 to April 6. The issue will reportedly be underwritten by several banks. These include Credit Suisse, Barclays, Goldman Sachs, BNP Paribas, Commerzbank, HSBC, Morgan Stanley and UniCredit. Meanwhile, Deutsche Bank says it will act as both "global coordinator and joint bookrunner." 

2. The Deutsche Bank restructuring will be focused on three business divisions.

According to Deutsche Bank, the restructuring will focus on three business divisions. These include its Private and Commercial Bank, Deutsche Asset Management and the company's Corporate and Investment Bank. At the same time, the company has also said it will integrate its Corporate Finance, Global Markets and Transaction Banking businesses into a single division, which will be known as Corporate and Investment Bank (CIB). On the other hand, Deutsche Bank has also said it plans to retain its Postbank business.

3. There will be layoffs ahead in Deutsche Bank.

In a press statement, Deutsche Bank has said it expects severance and restructuring costs amounting to €2 billion (approximately P106.8 billion) as a result of the changes it will make in the organization. "Further reductions are unavoidable," Deutsche Bank CEO John Cryan had said in a message sent to employees on March 5. The said cost will be spread between 2017 to 2021, with about 70 percent of the cost being incurred over the next two years.

Meanwhile, the company has said that the costs of restructuring and severance, litigation, impairment of goodwill and others are expected to reach approximately €22 billion (approximately P117.5 billion) in 2018. It is unclear how many employees will be let go as a result of the company restructuring. 

Deutsche Bank is said to be Germany's leading bank, known for its various banking services. These include commercial banking, retail banking, investment banking and transaction banking. The company also offers several asset and wealth management products and services to businesses, private individuals, governments, institutional investors and corporations. Recently, Deutsche Bank had disclosed a loss of €1.9 billion during the fourth quarter of 2016 after reaching a settlement with the US Justice Department over the sale of several toxic mortgage securities.

What do you think of Deutsche Bank's plans to restructure and raise €8 billion? Let us know in the comments section below.