Financial services group ING on Friday announced the details of its €7.5bn rights issue which it aims to use to partly pay back state aid of €10bn.
The group is to issue almost 1.8 billion new shares at €4.24 a share, representing a discount of 52% on Thursday’s close.
Investors can buy six new shares for every seven they hold. The subscription period will run from November 30 to December 15.
‘This rights issue is a critical component of the measures we announced to regain our independence and to chart a clear course forward,’ said CEO Jan Hommen in a statement. ‘With investors’ support, we will be able to repay half of the funds we received last year from the Dutch state and maintain our capital strength.’
The rights issue was announced last month at the same time as ING said it would separate its banking and insurance operations. That move was forced through by EU competition officials as a condition of approval for the state bail out and €22bn guarantee on risky loans.
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