OpenLegislation

Division a)

United Kingdom

Original text. Later amendments are not shown.

Repayment of the remaining Core Tier 1 Securities;

  • ING will repay the remaining 300 000 000 Core Tier 1 Securities to the Netherlandsaccording to the following schedule: (i) EUR 1 125 million by 26 November 2012, (ii) EUR 1 125 million by 6 November 2013, (iii) EUR 1 125 million by 31 March 2014, and (iv) EUR 1 125 million by 15 May 2015 as further detailed in the schedule below.

    To bring the total payment exactly to EUR 4,5 billion, for a very small part ING will need to exercise the conversion option of the Core Tier-1 securities, because repurchase at 150 % will trigger accrued interest if not done on 13 May of each year. In case of (such) conversion (also as described under this commitment below), the DutchStatewill opt for redemption at par in cash.

  • Those repayments will predominantly be done by repurchasing the Securities from the DutchStateand by paying the related 50 % premium. The above-mentioned schedule leads to a total repayment of EUR 4,5 billion translating into an overall internal rate of return (IRR) of exactly 12,5 %, which is above the overall return of at least 10 % mentioned in the Commission’s Decision of 12 November 2008. ING will only use its conversion option to the extent that coupon payments are triggered and/or accrued interest is payable, such that the proceeds will be equal to a total of EUR 4,5 billion. In such a case, the coupon and/or accrued interest payments leading to proceeds over the total of EUR 4,5 billion will be effectively deducted from casu quo credited against the 50 % premium payment. Bringing the total repayment to EUR 4,5 billion EUR can be achieved by a - pro rata - conversion of part of the remaining securities instead of repurchasing them. All remaining payments (notional, premium, coupons and/or accrued interest) sum up to a total of EUR 4,5 billion.

  • The actual repayments of the tranches within the above-mentioned schedule are conditional upon approval of the Dutch Central Bank (DNB).

  • It is ING’s ambition to repay the DutchStateas quickly as possible, and ING will accelerate payments if it is prudent under prevailing financial circumstances. If ING accelerates the payments, it would consequently lead to an IRR above 12,5 %.

  • If a repayment tranche cannot be made in full or in part, ING will make it up by a corresponding increase of the subsequent tranche. The DutchStatecommits to re-notify the Core Tier 1 recapitalisation measure in the event that ING does not repay in full two consecutive repayment tranches.

  • If ING does not repay a total of EUR 4,5 billion by 15 May 2015 as indicated in above schedule the DutchStatecommits to re-notify the Core Tier 1 recapitalisation measure.