NN Group announced today that ING Group has made a capital injection of EUR 57 million into NN Group by subscribing for newly issued shares for an aggregate amount of EUR 57 million and has through ING Bank provided a EUR 63 million additional Tier 1 capital facility to NN Bank to fulfill a commitment to the European Commission (EC) pertaining to the capitalisation of NN Bank. This commitment was included in the EC decision of 16 November 2012. The decision requires ING Group to create a competitive bank in the Netherlands separate from ING Group.
In order to meet the EC commitment, ING Group has made a capital injection of EUR 57 million into NN Group against the issuance of 2,178,899 ordinary shares in NN Group reflecting a price per share of EUR 26.16, equal to yesterday's closing share price. The shares acquired are not subject to a lock-up. NN Group has used the proceeds to make a capital injection of EUR 57 million in NN Bank. As a result of this transaction, NN Bank's phased-in common equity Tier 1 ratio has increased from 13.8% to 15.7% on a pro-forma basis as at 31 March 2015.
In addition, ING Bank has provided NN Bank with a facility, under which NN Bank has the unconditional right to draw down additional Tier 1 capital from ING Bank up to an amount of EUR 63 million until 31 December 2018 at prevailing market terms.
Previous statements in relation to NN Group’s and NN Bank’s capital position remain unaffected. NN Group’s dividend policy remains unchanged. Capital generated in excess of NN Group’s capital ambition is expected to be returned to shareholders unless it can be used for any other appropriate corporate purposes, including investments in value creating corporate opportunities. NN Group is committed to distributing excess capital in a form which is most appropriate and efficient for shareholders at that specific point in time, such as special dividends or share buy backs which may include a repurchase of part of ING Group’s shareholding in NN Group.
Following the capital injection, ING Group’s stake in NN Group has increased slightly to 54.8%. With the transactions, ING Group has achieved full compliance with the EC commitment on the capitalisation of NN Bank.
NN Bank offers a range of banking products in the Netherlands that are complementary to NN's life and non-life insurance products, including mortgages and savings products.