Bangkok--21 Oct--TMB
First, even though ING's financial condition is strong, ING considers it prudent in the current market environment to further strengthen its capital position. ING's executive board believes that additional capital will give our customers, employees and other stakeholders more comfort and protection. Accordingly, ING has agreed to increase its capital by Euro 10 billion, by drawing down on Dutch government funds. The capital strengthening transaction is expected to be settled by 12 November 2008. This transaction does not dilute our existing shareholders while providing additional security to our 85 million customers. By increasing our capital position, we have ensured that our competitive position is even stronger. Our customers will now feel even more secure in their dealings with ING.
Second, ING announced today that it has agreed to sell ING Life Taiwan to Fubon Financial Holding Co. Ltd for USD 600 million (EUR 447 million). ING has sold the business for a 5% shareholding in Fubon plus debt of Fubon. The transaction has been under negotiation for quite some time, so the timing of this announcement at the same time as the capital raising above is coincidental.
ING's board member for Insurance Asia/Pacific, Hans van der Noordaa, said that "ING is committed to realising its growth ambitions in Asia and will continue to assess opportunities that will allow us to accelerate that growth."
For Thailand, it means that ING now has more capital to grow strongly. As one of the Asian tigers, Thailand is an important growth market for ING and ING is keen to invest further. ING is committed to increasing its investments in banking (TMB and ING Bank), asset management (ING Funds) and life insurance (ING Life). In particular, please note that ING Life is committed to growing its tied agency, deepening its bancassurance business with TMB and increasing its partnerships for its direct business.
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