ING Bank N.V. (NL) 10Y EUR Autocallable Notes 08/28

Transcription

1 10Y EUR Autocallable Notes 08/28 linked to the EURO STOXX Select Dividend 30 Price EUR index (SD3E) Autocallable 1 Maximum 10 years (early redemption is possible) Repayment of the capital at 100% of the nominal value EUR 100 in EUR at maturity 2 or, if applicable, in the event of early redemption Providing, under certain conditions 2, repayment of 100% of the nominal value EUR 100 with a gross bonus 3 The positive trend of the corporate profits driven by strong global production has a positive effect on business confidence and offers entrepreneurs better growth prospects. This should support the results of the companies as well as the return on the dividends paid out The ING 10Y EUR Autocallable Memory Notes 02/28 enable investors to diversify their bond portfolio by investing in a Note which combines potential yield with the performance of the EURO STOXX Select Dividend 30 Price EUR Index, consisting of 30 European companies selected from 11 eurozone countries based on their high dividend yields. Main characteristics These Notes are intended for customers looking for an investment: that is linked to the EURO STOXX Select Dividend 30 Price EUR index (SD3E) (the Index 1 ). Given that the price index isn t adjusted based on dividends, investors will not receive dividends from the equities it contains; with a maturity of 10 years (as long as the conditions for early redemption are not met in the meantime); providing, under certain conditions, a repayment of capital with bonus 2. and who accept: that the issue price is 101% of the Nominal Value; the potential for an early repayment, if, at an Annual Observation Date, the level of the Index is equal to or higher than the corresponding Barrier Level. The Level of the Index will be compared from the second year onwards and at each Annual Observation Date to a level determined on the basis an increasing percentage of its Initial Level («Barrier Level»): 102% - 103% - 104% - 105% - 106% - 107% - 108% - 109%; that in the event of bankruptcy or potential bankruptcy of the Issuer, investors may not receive the amounts to which they would be entitled and may lose the capital invested. The proposed product is a structured note issued by ING Bank N.V. Subscribing investors lend money to the Issuer who commits to paying a coupon under certain conditions and to repaying a given amount, on either the Early Redemption Date or at Maturity (see «Short description» and «Characteristics»). In the event of bankruptcy and/or the risk of bankruptcy by the Issuer, investors may not receive the amounts they were entitled to and may lose their invested capital. This complex financial instrument is intended for investors who have sufficient experience to understand the characteristics of the product offered and who have sufficient knowledge, notably familiarity with the Index and interest rates, to assess the benefits and risks associated with investing in this complex instrument given their financial situation. 1 For all data, the definition of the Index and the Barrier Level, please refer to the Technical Data. 2 Except in the event of bankruptcy or potential bankruptcy of the Issuer. 3 All bonuses are gross amounts, before the deduction of any taxes and duties (see «Taxation» below). 1

2 Performance scenarios Potential investors are advised to read the Key Information Document (page 2, available on for more information about the scenarios calculated using the methodology of the European Union s regulation on PRIIPs (Regulation (EU) No. 1286/2014). Observation Dates Autocall Barrier Levels (as a % of the Initial Level) 27/07/ % 104% 26/07/ % 106% 25/07/ % 108% 25/07/ % 110% 25/07/ % 112% 25/07/ % 114% 27/07/ % 116% 26/07/ % 118% If the Level of the Index is equal to or higher than the Autocall Barrier Level, the Gross Early Redemption Amount as a % of the nominal value (EUR 100) is: The Notes continue if the Level of the Index is below the Autocall Barrier Level. IF THE NOTE IS NOT REPAID EARLY: If, on the final Observation Date (25/07/2028), the Level of the Index is less than 100% of the Initial Level: Repayment of 100% of the nominal value (EUR 100). If, on the final Observation Date (25/07/2028), the Level of the Index is equal to or higher than 100% of the Initial Repayment of 100% of the nominal value (EUR 100) plus 100% of any positive performance in the Index. Change in the EURO STOXX Select Dividend 30 Price EUR index (SD3E) June June Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Source: Bloomberg ticker «SD3E» (22/06/2018) For more information: Past performance is not a reliable indicator of future performance. The EURO STOXX Select Dividend 30 Price EUR Index (Bloomberg Code SD3E Index) is a price index which consists of the 30 stocks with the highest historical dividend yields among companies in 11 countries in the eurozone: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. The dividend yield corresponds to the ratio of the amount of dividends paid to the share price. As this is a price index, the dividends paid by the constituent shares are not reinvested in the Index. The investor does not benefit from the distribution of dividends by the shares. The Notes are not sponsored, approved, sold or promoted by the Index Sponsor. In addition, the Sponsor of the Index does not take a position on the appropriateness of acquiring or taking a risk in relation to the Notes and/or on the future trend of the Index. 2

3 Post-subscription information After the close of the subscription period, ING Belgium SA/nv will provide investors with all important information regarding the ING 10Y EUR Autocallable Memory Notes 02/28 via its website (ing.be). The value of the Notes, adjusted on a weekly basis, will also be accessible to investors via (ing.be > Retail > Invest > Bonds > Structured Notes > Structured Note Prices). In the event of a complaint, you can contact ING Complaint Management Cours Saint Michel, Brussels. If you do not feel that the issue was resolved to your satisfaction and you are working on your own behalf, you can contact the financial disputes ombudsman at North Gate II, Avenue Roi Albert II 8, 1000 Brussels ( Risk factors Before subscribing to the Notes, it is recommended that potential investors read the Key Information Document, the Technical Data on the last page, the Prospectus (in particular, the Risk Factors section), its summary and the Issue Summary. Risk of Issuer insolvency In the event of ING Bank N.V. s bankruptcy and/or potential bankruptcy and/or bail-in 4, the Notes may be cancelled in whole or in part or converted into equity instruments (shares), depending on the decision of the supervisory authority. In this case, investors run the risk of not recovering the amounts to which they were entitled and may lose all or part of the amounts invested and potentially any interest due. Risk of fluctuations in the value of the Notes (market risk) Certain parameters such as: - changes in the Index (a drop in the level of the Index will entail a drop in the value of the Notes and a rise will have a positive impact on the value of the Notes); - changes in interest rates on the financial markets (a rise in market interest rates has a negative impact on the value of the Notes and a fall in market interest rates have a positive effect on the value of the Notes); - the prospect of a change in the Issuer s rating, will have a positive or negative impact on the value of the Notes during their lifetime and result in a capital gain or loss if the investor resells the Notes before their Maturity Date. Liquidity risk This Note will not be listed on a regulated market. ING Bank N.V. will guarantee market liquidity by offering investors a redemption price. This redemption price is determined by ING Bank N.V. based on its own models and taking account current market parameters (see «Risk of fluctuation in the value of the Notes» above) as well as the difference between the buying price and the mid-price («Bid-Mid Spread»). The redemption price could be lower than the nominal value of the Notes (capital loss risk). Under normal market conditions, the difference between the redemption price and the market price (known as the «bid-mid spread») will be around 1.00%. In addition, the price offered by ING Bank N.V. does not include brokerage fees, the tax on stock exchange transactions or any taxes or duties (see «Technical Data»). 4 A bail-in can be defined as a series of measures imposed by the supervisory authorities intended to pass on the losses of a credit institution in difficulty to all or some of its creditors, including investors who have subscribed to structured notes. The measures can result in a decrease in the nominal amount of the structured notes or in their conversion into shares of the credit institution in order to absorb its losses and/or recapitalise it (in some cases, the decrease in the nominal amount can result in a nil value for the structured notes). 3

4 Other important information The Notes are the subject of a public offer. This Product Sheet is a promotional document produced and distributed by ING Belgium SA/NV as Distributor of the Notes. It should not, therefore, be interpreted as a recommendation to subscribe, or as advice or a recommendation to carry out any transaction whatsoever. This Product Sheet is communicated or made available by ING Belgium SA/NV to all or some of its customers and is not based on examination of the specific situation of a given customer. This Product Sheet is intended for the sole use of the original recipient and must not be reproduced, redistributed or passed on to any other person, or published, in whole or in part. The financial instruments concerned will not be registered pursuant to the United States Securities Act of 1933, as amended («Securities Act»), and cannot be offered or sold in the United States, or to individuals with American nationality, a postal, legal or tax address in the United States, a telephone number in the United States or a permanent residence permit for the United States («Green Card»), even outside the territory of the United States. Legal documentation The «Base Prospectus for the Issuance of Index Linked Notes (Level 2)» of 22 June 2018 (the Base Prospectus ) of the Issuer has been approved by the AFM in the Netherlands. The Prospectus consists of the Base Prospectus, the Final Terms and the Issue Summary. The Base Prospectus is only available in English. The Summary of the Issue and the Key Information Document are also available in French. The Base Prospectus can be viewed at ww.ingmarkets.com > ING Markets > Downloads > Global Issuance Programme. The Final Terms, the Issue Summary and the Key Investor Information Document can be viewed at > XS and > Investing > Bonds and derivative products > Discover our current offer of Structured Notes > Final Terms. A copy of each of these documents is available free of charge from any ING branch in Belgium or by telephone. It is recommended that potential investors review all of these documents before subscribing to the Notes. Additional information about Belgian law The Issuer states that they comply with the Belgian code of economic law and, notably, the provisions relating to misuse clauses. In this respect, the Issuer states that they have made the misuse clauses included in the base prospectus non-applicable via definitive terms and conditions. 4

5 Technical data for the ING 10Y EUR Autocallable Notes 08/28 Issuer ING Bank N.V., Amsterdamse Poort, Bijlmerplein 888, Amsterdam, 1102 MG, The Netherlands (Dutch-registered company) Applicable law Dutch law. Distributor ING Belgium SA/NV, Avenue Marnix 24, B-1000 Brussels Current Issuer rating Standard and Poor s: A+ (Stable outlook); Moody s: Aa3 (Stable outlook); Fitch: A+ (Stable outlook). Ratings are given for purely informational purposes and are not recommendations to buy, sell or keep the securities of the Issuer. Rating agencies can suspend, change or withdraw them at any time. Rating notices can be viewed on the following website: be/fr/thematiques epargner-etinvestirquestions-cles/ notation / Subscription period From 2 July 2018 to 27 July 2018 inclusive (assuming no early closure) Denomination/Nominal value EUR 100/100 % Issue price 101% 5 of the Nominal Value Issue date and payment 1 August 2018 Maturity date 1 August 2018 ISIN Code XS Initial Level The closing level of the Index on 27 July 2018 («Initial Observation Date») Final Level The closing level of the Index on 25 July 2028 («Final Observation Date») Observation level The closing level of the Index on an Annual Observation Date Annual Observation Dates 27 July 2020, 26 July 2021, 25 July 2022, 25 July 2023, 25 July 2024, 25 June 2025, 27 July 2026, 26 July 2027, 25 July 2028 Barrier Level (as a % of the Initial Level): 102% - 103% - 104% - 105% - 106% - 107% - 108% - 109% 5 Issue price of 101%, including a fee for the structuring and distribution of the Notes up to a maximum of 3%. 5

6 Early redemption If the Observation Level recorded on any of the Annual Observation Dates is equal to or higher than the corresponding Barrier Level, the Notes will be redeemed at 100% of their nominal value on the corresponding Early Redemption Date plus a gross bonus, determined on the basis of the redemption date. Possible Early Redemption Dates with Bonus 03 August 2020, 02 August 2021, 01 August 2022, 01 August 2023, 01 August 2024, 01 August 2025, 03 August 2026, 02 August 2027 Levels of Bonus (as a % of the nominal value): 4%; 6%; 8%; 10%; 12%; 14%; 16%; 18% Redemption at the Maturity Date If, on the Final Observation Date, the Final Level of the Index is equal to or higher than 100% of the Initial Level, the Notes will be redeemed at 100% of their nominal value, plus 100% of any positive performance in the Index. If, on the Final Observation Date, the Final Level of the Index is lower than its Initial Level, the Notes will be redeemed at 100% of their nominal value and no bonus will be paid. Commissions and fees - Entry costs: maximum 3% for the entire duration of the note (The impact of the costs you pay when you take out your investment and when costs are integrated into the price); - Exit costs if selling the notes before maturity: under normal market conditions, 1% (the «Bid-Mid Spread»). This does not include brokerage fees, the tax on stock market transactions or any taxes or duties ( > Tariffs and regulations > Estimation of transaction costs for financial instruments. Taxation (The tax treatment depends on the individual situation of each investor and is subject to change later) In relation to individuals who are resident for tax purposes in Belgium Withholding tax Income from the Notes is subject to withholding tax, which is currently 30%. In the event of a sale on the secondary market, Personal Income Tax at the separate rate of 30% will be owed on the amount of securities income received at the time and declared. Income from the Notes on which the 30% withholding tax has been levied does not need to be declared in the Personal Income Tax return. Tax on stock exchange transactions In the event of a sale on the secondary market, the tax on stock exchange transactions (TOB) will be levied, currently 0.12% (maximum 1,300 per transaction). For private individuals with their tax residence located in a State which participates in the Common Reporting Standard (CRS Standard) and/or who are a Specified U.S. Person within the meaning of the Foreign Account Tax Compliance Act (FATCA). This Note falls under the scope of application of the CRS Standard and FATCA. Belgium will forward information to the State participating in the CRS Standard where the private individual s tax residence is located and/or to the United States, in accordance with the rules defined in the CRS Standard and FATCA. ING Belgium SA/NV Bank/Lender Avenue Marnix 24, B-1000 Brussels RPM Brussels VAT No.: BE BIC: BBRUBEBB IBAN: BE Responsible publisher: Marie-Noëlle De Greef Cours Saint-Michel 60, B-1040 Brussels Editing Team & Graphic Studio Marketing ING Belgium E 06/18.