ING prices GBP 600 million in debut tier 1 transaction in U.K.

Amsterdam, 1 March 2006

ING Groep N.V. announced today it priced GBP 600 million (EUR 882 million) in perpetual securities sold to institutional investors in the U.K. The transaction marks the debut hybrid tier 1 transaction for the Group in the U.K. market. The capital will be used to finance the strong growth of the balance sheet of ING Bank N.V.

The securities will pay a fixed coupon for 10 years of 5.14%, or 97 basis points above the benchmark U.K. government bond. After 10 years the instrument is callable at par. If not called, the coupon will change to a floating rate of 3-month Sterling Libor plus 162 basis points, which is equivalent to a step-up in spread of 100 basis points. The securities, which will be listed in Luxembourg, are expected to be rated A2 by Moody’s and A by Standard & Poor’s.

The sale, which was managed by ING Wholesale Banking, UBS Investment Bank and Lehman Brothers, was significantly oversubscribed. The transaction is expected to close on 17 March.

Press enquiries: ING Group
Dorothy Hillenius, +31 20 541 6522, dorothy.hillenius@ing.com

ING is a global financial institution of Dutch origin offering banking, insurance and asset management to over 60 million private, corporate and institutional clients in more than 50 countries. With a diverse workforce of about 115,000 people, ING comprises a broad spectrum of prominent companies that increasingly serve their clients under the ING brand.