New Issue: ABN Amro prices $1.3 million 10% reverse exchangeables linked to IBM

By E. Janene Geiss

Philadelphia, Dec. 28 - ABN Amro Bank NV priced $1.3 million of 10% annualized Knock-In Reverse Exchangeable notes due June 30, 2008 linked to International Business Machines Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.

Payout at maturity will be par in cash unless IBM stock falls below the protection price of $88.84, 80% of the initial price of $111.05, during the life of the notes and finishes below the initial price in which case the payout will be 9.005 shares of IBM stock.

ABN Amro Inc. is the agent.

Issuer:	ABN Amro Bank NV
Issue:	Knock-In Reverse Exchangeable notes
Underlying stock:	International Business Machines Corp. (NYSE: IBM)
Amount:	$1.3 million
Maturity:	June 30, 2008
Coupon:	10%, payable monthly
Price:	Par
Payout at maturity:	If IBM shares fall below the knock-in price during the life of the notes and finish below the initial share price, a number of shares equal to $1,000 divided by the initial share price; otherwise, par
Initial price:	$111.05
Protection price:	$88.84, 80% of $111.05
Exchange ratio:	9.005
Pricing date:	Dec. 21
Settlement date:	Dec. 31
Agent:	ABN Amro Inc.
Agent fee:	2.25%

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