ING offers to buy back $7.7 billion in own debt
December 12, 2011
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AMSTERDAM—ING NV, the Dutch bank and insurer, says it will launch offers to buy back euro5.8 billion ($7.7 billion) of its own debt trading below face value.
The company said it will offer cash or new senior bonds for seven batches of "subordinated debt securities" at prices ranging from 58 percent to 87 percent of their face value. ING said the offer is a premium to levels the securities are trading at now.
When debt trades at a discount to its face value, it is a signal investors believe there is a significant chance it won't be paid back.
To the extent the paper is repurchased below face value, it will lower ING's net debt and improve its capital position.
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