ING Group Injects EUR 57 Mln In NN Group To Fulfil EC Commitment - Quick Facts

(RTTNews) - Dutch banking firm ING Group (ING) Thursday announced that it has made a capital injection into NN Group of 57 million euros by subscribing for newly issued shares for an aggregate amount of 57 million euros.

ING has provided NN Bank a 63 million euros facility which allows the bank to draw additional Tier 1 capital. With this provision of capital, ING Group fulfils a commitment to the European Commission or EC pertaining to the capitalisation of NN Bank, which is included in the EC decision of 16 November 2012. That decision required ING Group to create a competitive bank in the Netherlands separate from ING Group.

ING now noted that with these transactions, it has achieved full compliance with the EC commitment on the capitalisation of NN Bank. The transactions have no material impact on the capital position of ING Group and no impact on the capital position of ING Bank.

The capital injection has been made against the issuance of 2,178,899 ordinary shares in NN Group at a price per share of EUR 26.16, equal to yesterday's closing share price. The shares acquired by ING Group are not subject to a lock-up.

NN Group has used the proceeds to make a capital injection of 57 million euros in NN Bank. As a result of this transaction, NN Bank's phased-in common equity Tier 1 ratio has increased to 15.7 percent from 13.8 percent on a pro-forma basis as at March 31.

The transaction raises ING's stake in NN Group slightly, to 54.8 percent.

As announced previously, ING Group intends to divest its remaining stake in NN Group over time, in line with its strategy to divest all of its insurance and investment management businesses.