EU blocks ING call for early debt redemption

first_imgTuesday 30 November 2010 2:59 am alison.lock Tags: NULL whatsapp Ad Unmute by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryUndoTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastUndoSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesUndoZen HeraldNASA’s Voyager 2 Has Entered Deep Space – And It Brought Scientists To Their KneesZen HeraldUndomoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comUndoAlphaCute30 Rules That All “Hells Angels” Have To FollowAlphaCuteUndoReporter CenterBrenda Lee: What Is She Doing Now At 76 Years of Age?Reporter CenterUndothedelite.comNetflix Cancellations And Renewals: The Full List For 2021thedelite.comUndoBeach RaiderSee The Woman Bradley Walsh Is Dating At 61Beach RaiderUndo whatsappcenter_img EU blocks ING call for early debt redemption Show Comments ▼ Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’SportsnautHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family Proof Share THE European Commission has rejected a request by Dutch bank ING to repay a $1.5bn (£960m) debt instrument because the financial group has not yet repaid its state aid.ING had wanted to call the instrument on 31 December as the hybrid will not qualify as Tier I capital under Basel III solvency rules.“ING cannot repay its private hybrid capital holders until it has repaid the capital it received from the Dutch State in full. This is to ensure a fair distribution of the rescue burden in the first place,” said Joaquin Almunia, Commission vice-president in charge of competition policy.ING received a €10bn capital injection from the Dutch State in October 2008, of which €5bn was repaid a year later.It also received €12bn in liquidity guarantees.The Dutch government, at the beginning of 2009, also provided ING with a back-up facility covering 80 per cent of a portfolio of $39bn in illiquid assets.“It remains our ambition to repay the state before the end of next year,” ING spokesman Frans Middendorff said.“We are not surprised but deplore the (Commission’s) decision,” he added.It will now have to pay an interest rate of 3.9 per cent on the 8.439 percent non-cumulative guaranteed trust preferred securities paper, made up of three-month LIBOR plus 360 basis points.ING will be able to call the hybrid loan after repaying the state or after 18 November 2010. last_img

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