ING Groep N.V. announced today it priced GBP 600 million (EUR 882 million) in perpetual securities sold to institutional investors in the U.K. The transaction marks the debut hybrid tier 1 transaction for the Group in the U.K. market. The capital will be used to finance the strong growth of the balance sheet of ING Bank N.V.
The securities will pay a fixed coupon for 10 years of 5.14%, or 97 basis points above the benchmark U.K. government bond. After 10 years the instrument is callable at par. If not called, the coupon will change to a floating rate of 3-month Sterling Libor plus 162 basis points, which is equivalent to a step-up in spread of 100 basis points. The securities, which will be listed in Luxembourg, are expected to be rated A2 by Moody's and A by Standard & Poor's.
The sale, which was managed by ING Wholesale Banking, UBS Investment Bank and Lehman Brothers, was significantly oversubscribed. The transaction is expected to close on 17 March.
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Press enquiries: ING Group
Dorothy Hillenius, +31 20 541 6522, dorothy.hillenius@ing.com |
