By Mary-Katherine Stinson
Lexington, Ky., Feb. 5 – ING Groep NV priced $1.25 billion of perpetual additional tier 1 contingent convertible capital securities at par, according to a notice and a market source.
The final order book was above $4.8 billion.
The securities will bear interest at 8.004% initially and will reset on Nov. 16, 2030, and every five years after, to a rate based on five-year SOFR mid-swaps.
The notes are non-callable for 6.8 years. ING may redeem all of the capital securities for a six-month period beginning on May 16, 2030 to, and including, the first reset date; and on any interest payment date after at par.
The notes will also be callable due to regulatory events or taxation events.
If the group CET1 ratio is less than 7%, a mandatory conversion will be triggered, subject to a floor price of $8.76 per ordinary share.
J.P. Morgan SE, ING, Goldman Sachs Bank Europe SE, Morgan Stanley, RBC Capital Markets, TD Securities and UBS are leading the sale.
Proceeds will be used for general corporate purposes and to strengthen ING’s capital base.
The notes will be listed on Euronext Dublin.
The financial services company is based in Amsterdam.
| Issuer: | ING Groep NV
|
| Amount: | $1.25 billion
|
| Issue: | Perpetual additional tier 1 contingent convertible capital securities
|
| Maturity: | Perpetual
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| Bookrunners: | J.P. Morgan SE, ING, Goldman Sachs Bank Europe SE, Morgan Stanley, RBC Capital Markets, TD Securities and UBS
|
| Coupon: | 8.004% initially; resets on Nov. 16, 2030 to five-year SOFR mid-swap rate and every five years after
|
| Price: | Par
|
| Yield: | 8.004%
|
| Call features: | For six months beginning May 16, 2030 at par; after on any interest payment date at par
|
| Pricing date: | Feb. 5
|
| Settlement date: | Feb. 12
|
| Ratings: | Moody’s: Ba1
|
| Fitch: BBB
|
| Distribution: | Regulation S
|
| Price talk: | 8.375% area
|
| ISIN: | XS2761357594
|
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