(Adds details on collar trades and Deutsche share-price trend)

 
   By Max Bernhard and Julie Steinberg 
 

HNA Group has reduced its stake in Deutsche Bank AG (DBK.XE) to around 8.8% as it continues to raise cash to repay debt.

C-Quadrat Investments AG (C8I.VI), which manages the Deutsche Bank investment for HNA, said Friday that it doesn't plan to reduce the stake in the German bank further.

"HNA will continue to be a significant investor in Deutsche Bank," C-Quadrat said.

Only a week ago, the major Deutsche Bank shareholder lowered its stake to 9.2% from 9.0%. Indebted airline-to-finance conglomerate HNA has recently turned to selling assets and lending out shares of investments to generate cash.

HNA got an additional 253 million euros ($316 million) in financing from UBS Group AG to enter into new collar trades and extend its hedges on its Deutsche Bank position, according to a filing on Thursday, similar to a move it made in December. Such collars use options to limit gains and losses from movements in the stock. Shares of Deutsche Bank have fallen 19% in the year to date.

In total UBS has provided about EUR2.6 billion against all of the collar transactions with HNA, according to the filing.

HNA entered into the most recent transactions to repay a margin loan on Friday that had been provided by UBS and ICBC Standard Bank PLC.

Write to Max Bernhard at Max.Bernhard@dowjones.com; @mxbernhard

(END) Dow Jones Newswires

February 16, 2018 03:08 ET (08:08 GMT)