New Issue: ABN Amro sells $1.3 million 17.4% Knock-in Reverse Exchangeables linked to Fannie Mae

By Susanna Moon

Chicago, Dec. 21 - ABN Amro Bank NV priced $1.3 million of 17.4% annualized Knock-in Reverse Exchangeable Securities due March 27, 2008 linked to the common shares of Federal National Mortgage Association, according to a 424B2 filing with the Securities and Exchange Commission.

If Fannie Mae shares fall below the knock-in price - 60% of the initial share price - during the life of the notes and close below the initial share price, investors will receive a number of Fannie Mae shares equal to $1,000 divided by the initial share price.

Otherwise, investors will receive par in cash.

ABN Amro Inc. is the agent.

Issuer:	ABN Amro Bank NV
Issue:	Knock-in Reverse Exchangeable Securities
Underlying stock:	Federal National Mortgage Association (NYSE: FNM)
Amount:	$1.3 million
Maturity:	March 27, 2008
Coupon:	17.4%, payable monthly
Price:	Par
Payout at maturity:	If Fannie Mae shares fall below the knock-in price during the life of the notes and finish below the initial share price, a number of Fannie Mae shares equal to $1,000 divided by the initial share price; otherwise, par
Initial share price:	$35.65
Knock-in price:	$21.39, 60% of initial share price
Exchange ratio:	28.05 shares, at maturity
Pricing date:	Dec. 20
Settlement date:	Dec. 27
Agent:	ABN Amro Inc.

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