Deutsche Bank AG (DB) - Get Report will launch its €8 billion ($8.6 billion) capital raising strategy Tuesday with a rights issue priced at a 35% discount to last week's close.

Deutsche will sell 687.5 million shares at €11.75 each, the bank said Sunday, compared to its Friday closing price of €17.86 with a ratio of 2:1 and subscription period that will run through April 6. The launch comes as Germany's largest lender published it 2016 annual report.

"Our goal is to strengthen our position as a leading European bank with global reach, supported by our strong position in our home market, Germany," CEO John Cryan said. "A solid capital base is essential if we are to succeed in our future strategy and capture growth opportunities for Deutsche Bank. For that reason, the Management Board has decided on a capital raising from which we expect proceeds of around eight billion euros."

Deutsche Bank confirmed the launch of the rights issue on March 5 in a statement that outlined a series of capital raising and balance sheet measures, including the sale of around €80 billion in legacy assets from its Global Markets division and the partial spin-off of its Deutsche Asset Management Unit within the next two years.

The bank also set new near-term financial targets, including a post-tax return on tangible equity of around 10% under normal conditions and a "competitive dividend payout ratio for fiscal year 2018 and thereafter."

Deutsche Bank also said that its PostBank operations, a retail-focused division that offers services in Germany through the country's network of post offices, will be retained and integrated "with the Bank's existing German private and commercial banking and wealth management businesses." Last year, PostBank earned €367 million pre-tax on €3.366 billion in revenues.

The Frankfurt-based lender has a core capital ratio (CET1) of 11.9% as of the end of 2016, up 80 basis points from the previous year and that its overall risk-weighted assets fell €39 billion to €358 billion.

Deutsche Bank shares fell 1.1% in early Frankfurt trading to change hands at €17.63 each by 08:15 GMT. The stock has fallen 6.7% since the rights issue was confirmed on Sunday March 6, compared to a 1.22% gains for the Stoxx Europe 600 Banking Index.