ING completes sale of ING Direct Canada
ING completes sale of ING Direct Canada
ING completes sale of ING Direct Canada
Amsterdam, 15 November 2012
ING announced today that it has completed the sale of ING Direct Canada to Scotiabank with a net transaction gain of EUR 1.1 billion after tax.
As announced on 29 August 2012, the transaction is a result of ING’s continuous evaluation of its portfolio of businesses and is in line with ING’s strategic objectives of sharpening the focus of the bank and further strengthening its capital position.
The total consideration for the transaction is CAD 3.1 billion (EUR 2.4 billion at current exchange rates) with a total capital release for ING of EUR 1.3 billion. As a result, the sale will further strengthen ING Bank’s capital position with a positive impact on the core Tier 1 ratio of approximately 50 basis points, leading to a pro-forma core Tier 1 ratio of 12.6 percent at closing, based on ING Bank’s core Tier 1 ratio of 12.1 percent at 30 September 2012.
As previously announced, Scotiabank will assume the responsibility to redeem a locally issued lower tier 2 bond (ISIN CA 456847AA01) on 5 March 2013, which is the first eligible call date after closing. The bond has a total outstanding amount of CAD 321 million and carries a guarantee from ING Bank N.V..
The ING Direct units in Australia, Austria, France, Germany, Italy and Spain are not affected by
today’s announcement. ING continues to invest to evolve the ING Direct business model, increasing
the product offering and extending distribution, while integrating the balance sheet with the rest of ING Bank. On 9 October 2012, ING announced the sale of ING Direct UK which is expected to close in the second quarter of 2013.
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ING is a global financial institution of Dutch origin, offering banking, investments, life insurance and retirement services to meet the needs of a broad customer base. Going forward, we will concentrate on our position as an international retail, direct and commercial bank, while creating an optimal base for an independent future for our insurance and investment management operations.
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