ING Bank N.V. (NL) 4Y USD Absolute Performance Notes 02/23 (2)

Transcription

1 Linked to the Stoxx Global Select Dividend 100 index Absolute Performance 4 years In US dollars (USD) 1 ; Providing a gross bonus 3 under certain conditions 2 Capital redemption at 100% of the Nominal Value (USD 100) (excluding fees) at maturity in US dollars (USD) 3 These notes enable investments in US dollars and the benefit, where applicable, of a potential increase or decrease in the price of shares in the Stoxx Global Select Dividend 100 index. Brief description The «4Y USD Absolute Performance Notes 02/23» are redeemed at Maturity at 100% of the Nominal Value (USD 100) (excluding fees), in US dollars, to which is added a bonus linked to the changes in the Stoxx Global Select Dividend 100 Index (the «Index») 5 : If the level of the Index is equal to its Initial Level on the Final Observation Date. The Notes are redeemed at Maturity at 100% of their Nominal Value (USD 100) (excluding fees) and no coupons will be paid. If the Final Level of the Index is higher than the Initial Level, the Notes are redeemed at 100% of their Nominal Value 3 (USD 100) (excluding fees), in US dollars, plus 100% of any positive performance of the Index to a maximum of 25%. The likelihood of obtaining a maximum coupon is very low. If the Final Level of the Index is lower than the Initial Level, the Notes are redeemed at 100% of their Nominal Value 3 (USD 100) (excluding fees), in US dollars, plus 50% of the absolute performance 4 of the Index 5. Main characteristics These Notes are intended for customers looking for an investment: in US dollars (USD), which entails a foreign exchange risk in the event of the conversion of US dollars into euros; for a period of 4 years; which, at maturity, provides rights to a gross bonus linked to the changes in the Stoxx Global Select Dividend 100 (SDGL) (the «Index») 5.As this price index is not adjusted to reflect dividends, investors do not benefit from the distribution of dividends relating to the shares which constitute it; which provides rights to a capital redemption of 100% of the Nominal Value (USD 100) in American dollars (excluding fees) by the Issuer at maturity, except in the event of bankruptcy and/or the risk of bankruptcy by the Issuer. The product offered is a structured note issued by ING Bank N.V. By subscribing to it the investor lends money to the issuer who agrees to pay them a coupon under certain conditions and to repay them the Notes at 100% of the capital invested in US dollars (excluding fees) at the Maturity Date (see «Brief Description» and «Main Features»). In the event of default and/or risk of default by the Issuer, investors may not receive the amounts to which they would be entitled and may lose the capital invested. This complex financial instrument is intended for investors with sufficient experience to understand the characteristics of the product offered and who have sufficient knowledge to assess, based on their financial situation, the benefits and risks inherent in an investment in this complex instrument, and who are familiar with the characteristics of the Index and EUR/USD currency exchange risk. 1 Which entails a currency risk in the event of conversion of amounts in US dollars into euros. 2 The amounts of the bonuses mentioned in this document are gross amounts, before any withholding of taxes and duties (see «taxation» in the Technical Data on the last page). 3 Except in the event of bankruptcy and/or the risk of bankruptcy by the Issuer 4 The absolute performance corresponds to the purely numerical performance, whether positive or negative. 5 For all data, the definition of the Index and the Barrier Level, please refer to the Technical Data at the end of the document 1

2 Hypothetical examples 3 Index performance on the Final Observation Date Redemption on the Maturity Date (in % of capital invested) -60% 130% -40% 120% -20% 110% 0% 100% 20% 120% 25% 125% 40% 125% If the level of the Index on the Final Observation Date has fallen by 20% (80% of the Initial Level). The Notes will be redeemed at Maturity at 100% of their Nominal Value (USD 100) (excluding fees) and a 10% coupon will be paid. If the level of the Index is equal to the Initial Level on the Final Observation Date. The Notes will be redeemed at Maturity at 100% of their Nominal Value (USD 100) (excluding fees) and no coupon will be paid. If the level of the Index on the Final Observation Date has increased by 20% (120% of the Initial Level). The Notes will be redeemed at Maturity at 100% of their Nominal Value (USD 100) (excluding fees) and a 20% coupon will be paid. If the level of the Index on the Final Observation Date has increased by 40% (140 % of the Initial Level). The Notes will be redeemed at Maturity at 100% of their Nominal Value (USD 100) (excluding fees) and a 25% coupon will be paid. The likelihood of obtaining a maximum coupon is very low. Performance scenarios Potential investors are invited to read the Key Investor Information Document (page 2, available on (XS ) to obtain more information about the scenarios calculated based on the methodology of the European regulation on PRIIPs (EU Regulation 1286/2014). US dollar trend (USD) The dollar exchange rate vis-à-vis the euro has been volatile over the past two years. It has fluctuated between 1.04 at the beginning of January 2017 and 1.24 in January 2018, which was the ceiling for this year to date. The EUR has depreciated again since then. The EUR/USD exchange rate is set to remain fairly volatile in the short term, due to opposing forces. On the one hand, the US Federal Reserve is continuing the normalisation of its monetary policy, by raising its key interest rate and reducing the size of its balance sheet. This remains favourable to the US dollar, especially as in Europe, the European Central Bank is not yet contemplating a hike in its rates until after the summer of On the other hand, the United States has generated a significant current account deficit (the country imports more than it exports) which may put downward pressure on the USD. The above-mentioned opposing forces will, by nature, lead to higher volatility over the coming quarters, as we have observed over the past months. We nevertheless believe that we are likely to see the dollar trend downwards over the next two years. No guarantee can be given, however, with regard to the future levels of the US dollar exchange rate. Source: ING Belgium internal document, December Except in the event of bankruptcy and/or the risk of bankruptcy by the Issuer 2

3 Change in the EUR/USD rate (January January 2019) Past performance does not necessarily predict future results. Source: Bloomberg (01/11/2019) Hypothetical exchange rate risk example Assuming that on the date of payment of the notes, 1 EUR equals 1.22 USD: To acquire a USD 100 note at this exchange rate, you will pay EUR (excluding fees). At Maturity: if the EUR has appreciated by 10% compared to the USD (USD for EUR 1), you will only receive EUR per USD 100 note resulting in an exchange loss of 10% on the value of the capital in euros. if the EUR has weakened by 10% compared to the USD (USD for EUR 1), you will receive EUR per USD 100 note. In this case, you will realise a currency gain of 10% on the value of the capital in euros. Evolution in the Stoxx Global Select Dividend 100 Index (January January 2019) Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 The STOXX Global Select Dividend 100 (Bloomberg Code SDGL Index) is a price index consisting of 100 shares providing investors with a tool to track companies in the Americas, Europe and the Asia/Pacific region which pay high dividends. The weight of each of the components in the index depends on the level of its net annual dividend: the higher the dividend, the greater the weight of the company in the index. As this is a price index, the dividends paid by the constituent shares are not reinvested in the Index. Investors do not benefit from the distribution of dividends for the shares. For more information: com/index-details?symbol=sdgl Past performance does not necessarily predict future results. Source: Bloomberg (01/11/2019) 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. 3

4 Risk factors Avant de souscrire aux Notes, l investisseur potentiel est invité à lire le Document d Informations Clés, les Données techniques in fine, le Prospectus (et plus particulièrement la partie «Risk Factors» du Prospectus), son résumé et le Résumé de l Emission. Currency risk The issue is in US dollars (USD), which entails a foreign exchange risk on the conversion into euros of amounts received in US dollars. The amount redeemed at maturity in US dollars could, after conversion into euros, be lower than the equivalent in euros of the original capital invested. The bonus paid at maturity in US dollars could, after conversion into euros, also be reduced. The risk materialises in particular for investors who do not have an account in US dollars. The trend in the EUR/USD rate will have a positive or negative impact on the exchange value of the Notes in euros over their lifetime and result in a gain or loss on the exchange value in euros of the Notes at maturity or if the investor resells the Notes before their Maturity Date. Risk of fluctuations in the value of the Notes (market risk) Certain parameters such as: - changes in the Index: a decrease or increase in the index has an impact on the value of the Notes which depends on the changes in the absolute performance of the index; - changes in long-term interest rates on the financial markets: a rise in market interest rates has a negative impact on the value of the Notes over their lifetime and a fall in market interest rates has a positive effect 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 lifetime and may result in a gain or loss if the Notes are sold by the investor before maturity (see "Rating" in the Technical Data section). Liquidity risk This Note will not be listed on a regulated market. ING Bank N.V. will guarantee liquidity by proposing a purchase price to investors. This redemption price is determined by ING Bank N.V. on the basis of its own models and taking into Account current market parameters (see "Risk of fluctuation in the value of Notes" above) as well as a difference between the purchase price and the mid price (Bid-Mid Spread). The redemption price may be less than the Nominal Value (USD 100) (excluding fees) of the Notes (risk of capital loss). 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, exchange costs, stock exchange tax or any duties (see the Technical Data section). Risk of Issuer insolvency In the event of ING Bank N.V. bankruptcy and/or potential bankruptcy and/or bail-in6, the Notes may be cancelled in whole or in part or converted into equity instruments (shares), depending on the decision of the controlling 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. 6 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. These measures may result in a decrease in the nominal amount of the structured Notes (USD 100) (excluding fees) or their conversion into shares of the credit institution in order to absorb its losses and/or with a view to recapitalisation (in some cases, the decrease in the nominal amount (USD 100) (excluding fees) may result in a null value for the structured Notes). 4

5 Post-subscription information After the close of the subscription period, ING Belgium SA will inform investors of all important information related to the Notes via its website ( The value of the Notes, adjusted every day, will also be available to the investor on > XS In the event of a complaint, you can contact ING Complaint Management Cours Saint Michel, Brussels or send an to plaintes@ing.be.. If you do not feel that the issue has been resolved to your satisfaction and you are acting on your own behalf, you can contact the financial disputes ombudsman at North Gate II, Avenue Roi Albert II 8, bus 2, 1000 Brussels (ombudsman@ombudsfin.be). Legal Documentation The Issuer s "Base Prospectus for the Issuance of Index Linked Notes (Level 2)" of 22 June 2018, including its supplements dated 3 August 2018, 7 September 2018, 13 September 2018, 5 November 2018 and 8 January 2019 (the "Base Prospectus") has been approved by the AFM in the Netherlands. The Prospectus consists of the Base Prospectus, the Final Terms (01/16/2019) and the Issue Summary. The Base Prospectus is only available in English, The Issue Summary and the Key Investor Information Document are also available in French. The Base Prospectus can be viewed at > ING Markets > Downloads > Global Issuance Programme. The Final Terms, the Summary of the Issue and the Key Information Document can be viewed on the websites > XS and > Invest > Bonds & Derivatives > Find out about our current Structured Notes offering > Final Terms. A copy of the documents can be obtained free of charge from all ING offices in Belgium or by telephone. It is recommended that potential investors read all of these documents before subscribing to the Notes. Additional information about Belgian law The Issuer declares that they comply with the Belgian code of economic law and, notably, the provisions relating to abusive clauses. As such, the issuer declares that they have made the abusive clauses in the base prospectus inapplicable via the Final Terms. 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, 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 the territory of the United States. 5

6 Technical data for the ING Issuer ING Bank N.V., Foppingadreef 7, Amsterdam, 1102 MG The Netherlands (a Dutch-registered company) 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 provided for informational purposes only and are not recommendations to buy, sell or hold the Issuer s securities. Rating agencies may suspend, change or withdraw them at any time. Subscription period From 16 January 2019 to 1 February 2019 inclusive (except in the case of early closure) Denomination/Nominal value EUR 100/100% Issue price 101% of the Nominal Value (USD 100) Issue and payment date 5 February 2019 Maturity 6 February 2023 ISIN code XS Rating notices can be viewed on the following website: epargneretinvestirquestions-cles/notation/ Initial Level The closing level of the Index on 1 February 2019 ("Initial Observation Date") Final Level The closing level of the Index on 30 January 2023 ("Final Observation Date") Redemption at Maturity If the Final Level of the Index is equal to or higher than the Initial Level, the Notes will be redeemed at 100% of their Nominal Value 3 (USD 100) (excluding fees), in US dollars, plus 100% of any positive performance of the Index up to a maximum of 25%. The probability of obtaining a maximum coupon is very low. If the Final Level of the Index is lower than the Initial Level, the Notes will be redeemed at 100% of their Nominal Value 3 (USD 100) (excluding fees), in US dollars, plus 50% of the absolute performance 4 of the Index 2. 4 The absolute performance corresponds to the purely numerical performance, whether positive or negative. 6

7 Technical data for the ING Fees and charges - Entry costs: maximum 2.34% 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); - Recurring costs: 0.25% (The incidence of costs incurred annually for the management of your investment); - 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). - In addition to the fees and costs intrinsic to the Notes, investors who do not hold an account in US dollars must also bear the exchange costs (3%) when buying US dollars to purchase the Notes (market selling price on the date of the transaction) and/ or when selling US dollars on coupon collection and/or for redemption at maturity (market purchase price on the date of the transaction). 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%. 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). - In the case of private individuals whose tax residence is located in a country participating in the Common Reporting Standard (CRS) and/or who are a Specified U.S. Person within the meaning of the Foreign Account Tax Compliance Act (FATCA): This Note falls within the scope of the CRS and FATCA. Belgium will send information conforming to the principles defined by the CRS and FATCA to the country participating in the CRS in which the tax residence of the private individual is located and/or to the United States of America. ING Belgium S.A./nv Bank/Lender Avenue Marnix 24, B-1000 Brussels Brussels RPM/RPR VAT BE BIC: BBRUBEBB IBAN: BE Insurance Publisher: Philippe Wallez Cours Saint-Michel 60, B-1040 Brussels E 12/18 7