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ING to launch rights issue to repay half of State capital
injection
On 26 October 2009, ING announced that it had
reached an agreement with the Dutch State to alter the repayment
terms of the Core Tier 1 securities issued in November 2008, in
order to facilitate early repayment. This early repayment option is
valid until the end of January 2010. ING intends to use this window
of opportunity to repurchase EUR 5 billion of the core Tier 1
securities in December 2009.
ING strengthens core capital by EUR 10 billion
ING announced on 19 October, 2008 that it has
reached an agreement with the Dutch government to strengthen its
capital position, creating a strong buffer to navigate the current
market and economic environment. ING will issue non-voting core
Tier-1 securities for a total consideration of EUR 10 billion to
the Dutch State. The transaction will bring ING Bank’s core Tier-1
ratio to around 8%, will strengthen the insurance balance sheet and
will reduce ING Group’s Debt/Equity ratio to around 10%.
Illiquid assets back-up facility
ING and the Dutch government reached an
agreement on 26 January, 2009 for an Illiquid Assets Back-up
Facility covering 80% of ING’s Alt-A mortgage securities. Market
prices for these securities have become depressed as liquidity
dried up, which had an impact on ING’s results and equity far in
excess of reasonably expected credit losses. The transaction will
significantly reduce the uncertainty regarding the impact on ING of
any future losses in the portfolio.
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