ING Bank N.V. (NL) 8Y EUR Switch Rate Notes 12/26

Transcription

1 Document promotionnel 8Y EUR Switch Rate Notes 12/26 Structured Note 8 years 100% capital redemption 1 (excluding fees) in EUR at maturity A gross annual coupon 2 in EUR (before taxes and duties) of 0.85 % for the first four years. Starting from the fifth year, a gross annual variable coupon equal to the difference between the 30-year EUR CMS rate 3 and the 2-year EUR CMS rate, with a minimum of 0.00% and no maximum. Main characteristics This product is intended for customers looking for the following type of investment Period of 8 years which entitles the investor to a 100 % redemption of the capital in EUR (excluding fees) from the Issuer at Maturity, except in the event of the bankruptcy and/or potential bankruptcy of the Issuer; which entitles the investor, on each Coupon Payment Date 2, to a fixed gross annual coupon in EUR of 0.85% for the first four years and, starting from the fifth year, to a variable gross annual coupon, equivalent to the difference between the 30-year 4 EUR CMS rate 3 and the 2-year EUR CMS rate 4, with a minimum of 0.00 % and no maximum 1. 8Y EUR Switch Rate Notes 12/26 (abbreviated to ING 8Y EUR Switch Rate Notes 12/26 ) help investors to diversify their bond portfolio by investing in a fixed-rate Note in euros for the first four years, and a variable-rate Note starting from the fifth year. Please consult the risk factors on page 3. The spread between the 30-year and 2-year European rates has fluctuated significantly over the last four years, falling from 2.20 % at the start of 2014 to a low of 0.80 % in April For the last year, it has been around 1.70 %. Over the next few years, multiple factors will influence the rate spread, in particular the announced end of financial asset purchases by the central bank (which acts on long-term rates) but also the first (short-term) rate rises by the European Central Bank (ECB). Up to 2020, these factors could have the effect of reducing the rate spread somewhat. Historically, this spread has nevertheless been able to climb, depending on the economic circumstances, to more than 2.00 %, as was the case between January 2003 and October 2004, between May 2009 and May 2010, and between September 2013 and March No guarantee can however be given that this steepening of the rate curve will happen, or, if this is the case, when it will happen. Source: ING Belgium internal document, October 2018 Actuarial return In the event that the investor holds the Note until Maturity, the minimum annual actuarial return will be 0.30% gross (before taxes and duties) and % net (after taxes and duties) 1. This return takes account of: an issue price of 101 % 5 of the nominal value; coupons distributed annually (after the deduction of taxes and duties for the net actuarial return); a redemption price at Maturity of the Notes of 100 % of the capital invested (in euros) (excluding fees), except in the event of bankruptcy and/or potential bankruptcy of the Issuer. The product offered is a structured debt instrument issued by ING Bank N.V. By subscribing, the investor lends money to the Issuer, which undertakes to pay coupons on the Payment Dates and to refund 100 % of the capital invested in the Notes at Maturity, excluding fees. In the event of bankruptcy and/or potential bankruptcy of the Issuer, investors may not receive the amounts to which they would be entitled and may lose the invested capital. This complex instrument is intended for customers with sufficient experience to understand the characteristics of the product offered and with sufficient knowledge to assess, based on their financial situation, the benefits and risks inherent in an investment in this instrument, namely knowledge of interest rates. 1 Except in the event of the bankruptcy and/or potential bankruptcy of the Issuer. 2 Coupons are gross amounts before collection of any taxes and duties (see Taxation below). The rates are expressed on an annual basis. 3 For more detailed explanations on the CMS, see page 2. 4 At 22/10/2018, the 30-year CMS rate and the 2-year CMS rate stood at % and % respectively. 5 Issue price of 101%, including a fee for the structuring and distribution of the Notes of 3% maximum. 1

2 Calculation of the Coupon 30Y and 2Y EUR CMS Observation Dates 6 Gross annual coupon Coupon Payment Dates % 30/12/ % 28/12/ % 28/12/ % 28/12/ /12/ % * (EUR CMS 30Y - EUR CMS 2Y), with a minimum of 0.00% and no maximum 28/12/ /12/ % * (EUR CMS 30Y - EUR CMS 2Y), with a minimum of 0.00% and no maximum 30/12/ /12/ % * (EUR CMS 30Y - EUR CMS 2Y), with a minimum of 0.00% and no maximum 29/12/ /12/ % * (EUR CMS 30Y - EUR CMS 2Y), with a minimum of 0.00% and no maximum 28/12/2026 Performance scenarios It is recommended that potential investors read the Key Investor Information Document (page 2, available at XS for more information about the scenarios calculated using the methodology of the European Union s regulation on PRIIPs (Regulation (EU) No. 1286/2014). Changes in 30Y-2Y EUR CMS rates November November 2018 The CMS (Constant Maturity Swap) rate is a benchmark used by the financial markets for fixed-rate to variable-rate swap transactions (interest rate swaps) for a given period. The 30-year and 2-year EUR CMS rates are now the benchmarks for fixed-rate to variable-rate swap transactions for durations of 30 years and 2 years. At 02/11/2018, the 30-year CMS rate and the 2-year CMS rate stood at 1.527% and % respectively. You can find more information about EUR CMS rates and their weekly updates on the website be/ StructuredNotesUnderlyingValuesEN.pdf. Past performance does not necessarily predict future results. Source: Bloomberg 02/11/2018 Change in the spread between the 30Y EUR CMS and 2Y EUR CMS rates (November November 2018) Past performance does not necessarily predict future results. Source: Bloomberg 02/11/ The level of rates to take into consideration to determine the coupon amount shall be determined ten business days before the start of each Coupon Period. The definition of Coupon Periods can be found on page 6. 2

3 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 fluctuations in the value of the Notes (market risk) Certain parameters such as: - the trend in the long-term interest rates on the financial markets (a rise in interest rates on the long-term market has a negative impact on the value of the Notes and a fall in interest rates on the long-term market has a positive impact on the value of the Notes before their Maturity); - the prospect of a change in the Issuer s rating; has a positive or negative impact on the value of the Notes during their term and may result in a gain or loss if the Notes are sold by investors before their Maturity. Liquidity risk These Notes will not be listed on a regulated market. ING Bank N.V. will guarantee market liquidity, under normal market conditions, by offering investors a redemption price. The redemption price is determined by ING Bank N.V. based on its own models and taking into account current market parameters (see «Risk of fluctuations in the value of the Notes» above). The redemption price may be less than the nominal value (EUR 100) of the Notes (risk of capital loss). In normal market conditions, the difference between the purchase price and the market price («bid-mid spread») will be approximately 0.50%. 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»). Risk of Issuer insolvency In the event of bankruptcy and/or the risk of bankruptcy and/or a bail-in 7 on the part of ING Bank N.V., the Notes may be cancelled in whole or in part or converted into equity instruments (shares), depending on the decision taken by the supervisory authority. In this case, investors run the risk of not receiving the amounts to which they were entitled, and may lose all or part of the amount invested and potentially any interest due. Risk class We recommend that you refer to the Risk Indicator in the Key Investor Information Document, as well as the definition provided. 7 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 Legal documentation The Issuer s Base Prospectus for the Issuance of Medium Term Notes and Inflation Linked Notes (Level 1) of 22 June 2018, including its supplements dated 3 August 2018, 7 September 2018, 13 September 2018 and 5 November 2018 (the Base Prospectus ) was approved by the AFM in the Netherlands. The Prospectus consists of the Base Prospectus, the Final Terms (12/11/2018) and the Issue Summary. The Base Prospectus is only available in English, with the exception of the Issue Summary and the Key Investor Information Document, which are also available in French. The Base Prospectus can be viewed at > ING Markets > Downloads > Global Issuance Programme. The Final Terms, the Issue Summary and the Key Investor Information Document can be viewed on the websites > and > Investing > Bonds and derivative products > Discover our current offer of Structured Notes > Final Terms. A copy of the documents can be obtained free of charge from all ING branches 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 it complies with the Belgian Code of Economic Law and, in particular, the provisions relating to unfair contract terms. As such, the Issuer states that it has made the unfair terms included in the passported base prospectus inapplicable via the final terms and conditions. Post-subscription information After the end of the subscription period, ING Belgium SA will inform investors of any important information relating to the ING 8Y EUR Switch Rate Notes 12/26 via its website The value of the Notes, which is adjusted weekly, will also be accessible to investors via the internet ( XS ). In the event of a complaint, you can contact ING Complaint Management Cours Saint Michel, Brussels, or by at plaintes@ing.be. If you are not completely satisfied with the results and are a private customer acting on your own behalf for private purposes, you can contact the financial disputes ombudsman at North Gate II, Avenue Roi Albert II 8 bte 2, 1000 Brussels (www. ombudsfin.be). Other important information This Promotional Document has been produced and distributed by ING Belgium SA/NV. It should not, therefore, be interpreted as a recommendation to subscribe, or as advice or a recommendation to carry out any transaction whatsoever. This Promotional Document 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, nor 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 of the United States. 4

5 Technical data for the ING 8Y EUR Switch Rate Notes 12/26 Issuer ING Bank N.V., Foppingadreef 7, Amsterdam, 1102 MG The Netherlands (a company incorporated under Dutch law) Applicable law Dutch law. Distributor ING Belgium S.A., 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 purely for information purposes and are not recommendations to buy, sell or keep the Issuer s securities. Credit rating agencies can suspend, change or withdraw these ratings at any time. Rating notices can be viewed on the following website: be/fr/thematiques/epargner-et- investir/questions-cles/ notation Subscription period From 12 November to 21 December 2018 inclusive (subject to early closing) Annual coupons On each Coupon Payment Date, the Notes pay a fixed annual coupon of 0.85% for the first four years, and from the fifth year, a variable coupon equal to the difference between the 30-year EUR CMS rate and the 2-year EUR CMS rate, with a minimum of 0.00% and no maximum. Denomination/Nominal value EUR 100/100% Issue price 101% of the Nominal Value (EUR 100) Issue and payment date 28 December 2018 Maturity 28 December 2026 ISIN code XS Sale before Maturity See «Liquidity risk» on page 3 and «Fees and charges» below. Redemption at Maturity The Notes will be redeemed at 100% of their Nominal Value in euros (EUR 100), except in the event of the bankruptcy and/or potential bankruptcy and/or a bail-in of the Issuer. 5

6 Technical data for the ING 8Y EUR Switch Rate Notes 12/26 Coupon payment dates 30 December 2019, 28 December 2020, 28 December 2021, 28 December 2022, 28 December 2023, 30 December 2024, 29 December 2025, 28 December Coupon period The period from (and including) a Coupon Payment Date (or the Issue Date for the first Coupon Period) until the next (or first) Coupon Payment Date (not included). 30Y and 2Y EUR CMS Observation Dates 12 December 2023, 12 December 2024, 11 December 2025, 11 December Commissions and fees - Entry costs: maximum 3.00 % (including the difference (1%) between the issue price and 100% and including a fee for structuring and distributing the Notes of a maximum of 2 %) for the whole duration of the note (The incidence of the costs you pay when you initiate the investment and when the costs are included in the price); - Exit costs if selling the Notes before Maturity: under normal market conditions, 0.50% (see Bid-Mid Spread in «Liquidity risk»). Notes may be sold for less than the price paid by the investor at the time of their issuing (risk of loss). Furthermore, the price offered by ING Bank N.V. does not include brokerage fees, stock exchange tax or any duties. If the Notes are redeemed before their Maturity, brokerage fees will be applied on top of the price established by ING Bank N.V. ( > Charges and regulations > Charges applied to the main securities transactions). Taxation (The tax treatment depends on the individual situation of each investor and is subject to change over time) - Private individuals with their tax residence in Belgium Withholding tax Income from the Notes is subject to the Belgian withholding tax, which is currently 30%. If the Notes are sold on the secondary market, the income from movable property received and declared will be subject to a personal income tax rate of 30%. Any income from the Notes for which withholding tax of 30% has been paid does not need to be declared under personal income tax. Stock exchange tax 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) and/or who are a Specified US Person within the meaning of the Foreign Account Tax Compliance Act (FATCA) This Note falls under the scope of application of the CRS and FATCA. Belgium will forward information to the State participating in the CRS where the private individual s tax residence is located and/or to the United States of America, in accordance with the rules defined in the CRS and FATCA. ING België nv Bank/Kredietgever Marnixlaan 24, B-1000 Brussels RPR Brussel Btw: BE BIC: BBRUBEBB IBAN: BE Verantwoordelijke uitgever: Marie-Noëlle De Greef Sint-Michielswarande 60, B-1040 Brussels /18 6