ING sets 102.666 tender offer price for $2.25 billion 3.9% notes

By Angela McDaniels

Tacoma, Wash., June 28 - ING Bank NV determined the purchase price it will pay in the tender offer for its $2.25 billion 3.9% fixed-rate notes due March 19, 2014 guaranteed by the State of the Netherlands, according to a company news release.

For each $1,000 principal amount of notes, the company will pay $1,026.66 plus accrued interest up to but excluding the settlement date, which is expected to be July 2.

The purchase price was determined by reference to the bid-side yield to maturity of the 0.25% U.S. Treasury securities due March 31, 2014 at 11 a.m. ET on June 28. The fixed spread was zero basis points.

The offer began on June 19 and was set to expire at 5 p.m. ET on June 28.

In a separate offer, the company is also offering to purchase its €4 billion of 3.375% fixed-rate notes 2009 due March 3, 2014 guaranteed by the State of the Netherlands. That offer was scheduled to end at 11 a.m. ET on June 28.

The purchase price for the euro notes will be determined by reference to the German Government curve.

Funding for the offers will come from available cash.

"The purpose of the offers is to further optimize ING Bank's liability profile while reducing the amount of debt securities outstanding guaranteed by the Dutch State," the company said in a June 19 press release.

"Based on ING Bank's strong liquidity position and funding profile, and given the annual guarantee fee of 84 basis points on the notes payable to the Dutch State and the short remaining tenor of the notes, ING Bank is seeking to retire all or a portion of the notes."

ING Financial Markets LLC (646 424-6105) and J.P. Morgan Securities LLC (866 834-4666 or 212 834-4394) are the joint dealer managers for the U.S. offer, and D.F. King &Co., Inc. (attn.: Elton Bagley, 800 735-3591 or, for banks and brokers, 212 269-5550) is the tender and information agent for the U.S. offer.

ING Bank NV (+32 557 16 01 or Liabilitymanagement@ing.be) and J.P. Morgan Securities plc (+44 207 134 2468 / +44 207 134 3414, attn.: FIG syndicate/liability management or FIG_Syndicate@jpmorgan.com / emea_lm@jpmorgan.com) are the joint dealer managers for the euro notes, and Lucid Issuer Services Ltd. (ing@lucid-is.com) is the tender agent for the euro notes.

The financial services company is based in Amsterdam.

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