Holders of the securities (ISIN: XS0356687219) will be redeemed in full on the redemption date which is 18 April 2014. In the capital structure of ING, the Tier 1 hybrid will be replaced by the EUR 1.5 billion 3.625% CRD-IV eligible Tier 2 securities that were successfully issued in February 2014. The transaction will reduce the cost of capital for ING and will contribute to future earnings.
As agreed with the European Commission (EC), the financial benefit, which is estimated at EUR 50 million, will be used to increase the next repayment of core Tier 1 securities to the Dutch State. The final repayment will be lowered by the same amount, therefore the total amount of the repayments to the Dutch State remains unchanged.
Any future decisions by ING as to whether it will exercise (or cause to be exercised) calls in respect of debt securities will be made on an economic basis, taking into account the interests of all stakeholders. Other factors that ING will consider include prevailing market conditions, regulatory approval and capital requirements as well as authorisation from the EC. Based on the EC Restructuring Agreement as announced in November 2012, ING requires authorization from the EC to call capital securities until 18 November 2014, or when the State aid is repaid in full, whichever comes first.
