ING to repurchase EUR 2 bn core Tier 1 securities from Dutch State on 13 May
ING announced today that it has informed the Dutch State of its intention to
exercise its option for early repurchase of EUR 2 billion of the core Tier 1
securities at the next coupon reset date on 13 May 2011.
The repurchase of 200,000,000 core Tier 1 securities - for which the Dutch
Central Bank has given its approval - has a nominal value of EUR 2 billion. The
total payment will amount to EUR 3 billion and includes a 50% repurchase
premium. ING will fund this repurchase from retained earnings.
The final decision on repurchase of these core Tier 1 securities will be made
before the envisaged repayment date and will be conditional upon there having
been no material changes regarding ING's capital requirements and/or ING's
outlook on external market circumstances.
"Today's announcement marks another important milestone as we work towards the
full repayment of the support ING received from the Dutch State," said Jan
Hommen, CEO of ING. "The strong recovery of the banking business in 2010 has
enabled us to accelerate the repurchase of the core Tier 1 securities from
retained earnings, while maintaining a robust capital position post repayment."
The bank's strong recovery last year boosted ING's capital position resulting in
a core Tier 1 ratio of 9.6% as of the end of December 2010. Based on our capital
position at that date, the intended repurchase in May would reduce the core Tier
1 ratio by 90 basis points, and the ratio is expected to remain above 8.5%.
In December 2009 ING repurchased the first half of the core Tier 1 securities of
EUR 5 billion plus a total premium of EUR 606 million. Provided that the strong
capital generation continues, ultimately by May 2012 ING intends to repurchase
the remaining EUR 3 billion core Tier 1 securities from retained earnings, on
terms that are acceptable to all stakeholders.
Press enquiries Investor enquiries
Frans Middendorff
+31 20 541 6516 Â +31 20 541 5460
frans.middendorff@ing.com  investor.relations@ing.com
About ING
ING is a global financial institution of Dutch origin offering banking,
investments, life insurance and retirement services. As of 30 September 2010,
ING served more than 85 million private, corporate and institutional clients in
more than 40 countries. With a diverse workforce of about 107,000 people, ING is
dedicated to setting the standard in helping our clients manage their financial
future.
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PDF version press release:
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