ING Group successfully places USD denominated AT1 bond
18 November 2016
ING Group successfully issued a contingent convertible bond of which the proceeds will be used to further strengthen ING’s capital base.
The final issuance amount of the Perpetual Additional Tier 1 Contingent Convertible Securities was set at USD 1 billion. The issue qualifies as Additional Tier 1 capital under CRD IV/CRR.
The perpetual bond, that can be called by ING Group five years after issuance, has a coupon of 6.875%. The first call date for the issue is April 16 2022. The strong market demand led to attractive financing terms for ING Group. The bond will be subject to full conversion into ordinary shares of ING Group in the event ING Group’s phased-in CET1 ratio would fall below 7%. As of 30 September, ING Group’s CET 1 ratio stood at 13.5%.
The deal is expected to settle on Monday 21 November 2016.
Global coordinator was ING. Joint bookrunners of the issue were Citi, Goldman Sachs, HSBC, ING and UBS. Joint lead managers were BNP Paribas, Barclays, Credit Suisse, Morgan Stanley, Banco Santander and UniCredit.