ING Seeks to Repay $2.8B Worth of Dutch State Aid
ING (NYSE:ING) is looking to repay $2.8 billion in Dutch state aid by May, its latest effort to end its 10-billion-euro financial commitment to its home country.
The bank is looking to buyback 200 million core Tier 1 securities for 2 billion euros, amounting to 70% of its total obligations.
In December of 2009, ING repurchased the first half of the securities for 5 billion euros plus a total premium of 606 million euros. By May 2012, ING intends to buy back the remaining 3 billion euros.
“Today’s announcement marks another important milestone as we work towards the full repayment of the support ING received from the Dutch State,” Jan Hommen, the company’s chief executive said in a statement. “The strong recovery of the banking business in 2010 has enabled us to accelerate the repurchase of the core Tier 1 securities from retained earnings, while maintaining a robust capital position post repayment.”
The company’s financial improvement in 2010 led to a core Tier 1 ratio of 9.6% at the end of the year. The ratio is expected to remain above 8.5%.