7Y EUR Lookback Performance Notes 06/19

Transcription

1 Promotional Document 7Y EUR Lookback Performance Notes 06/19 The 7Y EUR Lookback Performance Notes 06/19 (in short ) are for investors looking for an investment:  in the long term (7 years)  which gives right to a 100% redemption (excluding costs) of the capital by the Issuer at End Maturity, except in the event of bankruptcy or default by the Issuer and/or the Guarantor  which offers the possibility of benefiting from a gross annual coupon of at least 1.00% 1 and at most 6.75% 1 which will depend on the average performance of a basket of 20 equi-weighted shares. Description of the coupon fixing mechanism Each year a gross coupon will be paid according to the performance (in percentage) of a basket of shares, with a minimum of 1.00% 1 and a maximum of 6.75% 1. The performance of the basket will equal the arithmetical mean of the trend of its component shares. The performance of the basket determines the rate of the gross coupon paid out. The trend of each share is calculated by comparing its closing price three business days before the Payment Date of the relevant coupon 2 with its starting price. For each share, the starting price retained will correspond to the lowest closing price on the Observation Dates of the starting level 3. To calculate the performance of the basket, the stable or positive trend of each share is replaced by 6.75% whereas the negative performance of each share is retained in its entirety. Real equity performance Performance booked to calculate the average performance of the basket 65% 6.75% 30% 6.75% 4% 6.75% 0% 6.75% -5% -5% -25% -25% If the performance of the basket is higher than 1%, a coupon corresponding to the actual average performance of the basket will be paid out with a maximum of 6.75% 1. If, conversely, the performance of the basket is lower than 1% or even negative, the coupon will be equal to 1.00% 1. The gross actuarial return is at least 0.70% 1 and at most 6.35% 1 in the scenario where the investor holds on to the Note until End Maturity. Such return takes into account the issue price of 102% (including a placement fee of 2% and a fee for structuring and distributing the Notes of a maximum of 1% on an annual basis), any coupons possibly paid out and a redemption price at End Maturity of 100%. The product offered is a debt instrument issued by ING Belgium International Finance and guaranteed by ING Belgium. When subscribing to this product you are lending to the Issuer who undertakes to pay coupons on the Coupon Payment Dates. At the End Maturity of the Notes the Issuer also undertakes to repay 100% of the capital invested excluding costs (i.e. EUR 100 per Denomination). In the event of bankruptcy or default by the Issuer and/or the Guarantor, you might not receive the amounts to which you would have been entitled and could lose the capital invested. This instrument is for investors with sufficient experience to understand the product parameters and with sufficient knowledge to assess, based on their their financial situation, the advantages and risks inherent in an investment in this complex instrument, in particular knowledge of the underlying and interest rates. 1 The coupon amounts shown in this document are gross amounts before the deduction of any taxes and duties (see "Taxation" below). 2 For the Coupon Payment Dates see the Technical Data on the last page 3 For the Observation Dates see the Technical Data on the last page

2 The basket of shares is made up as follows: Name Stock market ADIDAS AG Sector Consumer staples ISIN code DE000A1EWWW0 In line with ING Belgium's investment strategy, the basket is made up of shares from diversified sectors (with the exception of Utility Services for which sector the strategy is negative). The shares in the basket were selected mainly on the basis of the following criteria: ALTRIA GROUP INC US02209S1033  sectoral and geographic diversification ALLIANZ SE-REG ASTRAZENECA PLC London AT&T Financial DE GB US00206R1023  high dividends  and/or major stock exchange capitalisations  at least two thirds of the stock analysts who monitor such shares at the various financial institutions have given a positive or neutral opinion about such shares. DEUTSCHE TELEKOM AG-REG ENI SPA Rome FRANCE TELECOM SA Energy DE IT FR ING Belgium considers that the current price of such shares incorporates any unfavourable information and that such shares could, therefore, be undervalued. Such undervaluation can offer a higher growth potential for the purpose of this Note. Conversely, other parameters - such as correlation - which influence the selection of the basket of shares can restrict the potential return of the investment. KIMBERLY-CLARCK CORP US Investors can enquire at any branch of ING in Belgium for further information about the shares in the basket. KPN NA Amsterdam NL K+S AG-REG Materials DE000KSAG888 MICROSOFT CORP Technology US NOVARTIS AG Health CH REYNOLDS AMERICAN INC US ROCHE HOLDING AG CH SANOFI FR SCHNEIDER Industrial FR SWISS RE AG Financial CH TAKEDA PHARMACEUTICAL CO LTD Tokyo Health JP TOTAL SA Energy FR

3 Examples showing how the coupon is calculated The figures below are purely hypothetical and serve only to inform investors about the calculation method of the gross annual coupons on the basis of different scenarios. The actual realisation of any of these scenarios in the future cannot be guaranteed. Best-case scenario The price of each of the shares in the basket is stable or has risen against its starting level. The average performance of the basket is 6.75%. Baseline scenario The average performance of the basket is between 1.00% and 6.75%. Worst-case scenario The price of each of the shares in the basket dropped against its starting level. The average performance of the basket is negative. A gross coupon of 6.75% during the lifetime of the contract will be paid out for the relevant period. A gross coupon equal to the average performance of the basket will be paid out for the relevant period. Whatever the negative performance of the basket, a gross coupon of 1.00% will be paid out for the relevant period. Risk class specific to ING Belgium SA/nv The model ING Belgium SA/nv uses to determine the risk class of a Structured Note analyses the trend of its price in different market scenarios (best-case, baseline, worst-case). This analysis is based on the extreme levels of the underlying observed historically on the market. The greater the price volatility, the higher the risk category. We differentiate between a total of seven risk classes, ranging from 0 (lowest risk) to 6 (highest risk). This model does not take into account certain major types of risk, such as the credit and liquidity risks inherent in ING Belgium SA/nv, or the market risk in the event of resale before the End Maturity of the Note. The are in the risk class 2: Information subsequent to subscription After the end of the subscription period, ING Belgium SA/nv will communicate to investors via its website ( all important information relating to the. The value of the Notes which is adapted weekly will also be accessible to investors via the internet ( > Retail > Investments > Useful information > Net asset values and prices). In a later stage, it is possible that ING Belgium SA/nv will use other communication channels to correctly inform investors. 3

4 More information Please read the technical data on the last page. Risks Several types of risks are inherent in this Note: Price fluctuation risk (market risk) Some parameters (such as the prospect of a revision of the Guarantor's rating, the trend in interest rates on financial markets, the trend in the price of the shares in the basket) can impact negatively or positively on the value of the Notes during their lifetime. Insolvency risk of the Issuer and/or the Guarantor Investors are exposed to the Issuer's and/or the Guarantor's risk of insolvency (bankruptcy or default), which may result in the partial or total loss of the capital initially invested as well as any coupons due but unpaid (see Rating below: Technical data). Liquidity risk The Notes are listed on the Luxembourg stock exchange. Nonetheless such listing does not ensure the development of an active market allowing resale before End Maturity. Save in exceptional circumstances, ING Belgium SA/nv will guarantee investors of market liquidity by offering investors a redemption price. Such redemption price is determined by ING Belgium SA/nv on the basis of models specific to it and take account of the current market parameters (see "Price fluctuation risk" above). The redemption price could be lower than the nominal value of the Notes (capital loss risk). Under normal trading conditions, the difference between the buying price and the selling price on the market will be approximately 1.00%. Furthermore the price offered by ING Belgium SA/nv does not include brokerage frees, the stock exchange tax and any taxes (see "Technical data"). Below-average performance risk The return for investors could be lower than the return on a risk-free investment in the event the performance of the basket is negative or slightly positive each year. Prospectus The Base Prospectus relating to the EUR 10,000,000,000 Issuance Programme of the Issuer was approved by Luxembourg's Financial Sector Supervisory Commission (Commission de Surveillance du Secteur Financier) on 5 July The Prospectus consists of the Base Prospectus as well as the Final Terms of the ING 7Y EUR Lookback Performance Notes 06/19 of 4 May The Prospectus is available only in English, with the exception of the summary of the Base Prospectus, which is also available in French. These documents can be consulted at the website in the section on Investments" and then "In the spotlight. A copy is available, free of charge, from any ING branch in Belgium or simply by phoning. Disclaimer This Promotional Document is produced and distributed by ING Belgium SA/nv. Therefore it is not and should not be interpreted as a recommendation to subscribe, or advice or recommendation to conclude any transaction. Moreover this Promotional Document is communicated or made available by ING Belgium SA/nv to some or all of its customers and is not based on an examination of the individual situation of a particular customer. Unless the decision to invest is the outcome of investment advice provided by ING Belgium SA/nv, it is up to the customer to decide whether the financial instrument concerned by this Promotional Document is suited to his/her situation, without prejudice to the obligation of ING Belgium SA/nv to provide the information required with regard to the customer's knowledge and experience of financial instruments. This Promotional Document is intended for the 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, and cannot be offered or sold in the United States, nor to American citizens, even outside the United States, nor to Green Card holders. 4

5 technical data Issuer Guarantor and Distributor Guarantor s current rating ING Belgium International Finance SA, 52 route d Esch, L-2965 Luxembourg. ING Belgium SA/nv, 24, avenue Marnix, B-1000 Brussels. Standard and Poor s: A+ (Stable); Moody s: Aa3 (under review for downgrade); Fitch: A+ (Stable). Ratings are given for purely information purposes and are not recommendations to buy, sell or keep securities of the Issuer. Rating agencies can suspend, change or withdraw them at any time. Rating notices can be viewed on the following website: Nominal amount A minimum of EUR 5,000,000 Subscription period Denominations/nominal value EUR 100/100% Issue price Payment date 7 June 2012 End maturity 17 June 2019 Gross coupon From 7 May 2012 to 1 June 2012, unless closed early. 102% of the nominal value Each year a gross coupon will be paid according to the performance (in percentage) of a basket of shares, with a minimum of 1.00% and a maximum of 6.75% (see above). Starting level observation dates 7 June 2012, 5 July 2012, 2 August 2012 and 6 September Coupon payment dates 17 June 2013, 16 June 2014, 15 June 2015 and 15 June 2016, 15 June 2017, 15 June 2018 and 17 June Observation Dates 12 June 2013, 11 June 2014, 10 June 2015 and 10 June 2016, 12 June 2017, 12 June 2018 and 12 June Redemption at End Maturity Form Quotation Resale before End maturity Securities code The Notes will be redeemed at 100% of their nominal value at End Maturity, except in the case of bankruptcy or default by the Issuer and/or the Guarantor. Delivery solely on a securities portfolio with a financial institution. Custody in an account with ING Belgium SA/nv is free. Please enquire with other financial institutions about the safe-custody fees they apply. Quotation of the Notes on the Luxembourg stock exchange has been requested. Under normal trading conditions, investors have the possibility to resell their Notes before End Maturity to ING Belgium SA/nv once a week (see also "Liquidity risk" above). ISIN: XS Taxation In the case of private individuals residing in Belgium. Withholding tax: Income from the Notes collected by private individuals residing in Belgium for tax purposes is liable to the current 21% Belgian withholding tax. In the event of a sale on the secondary market, the Personal Income tax at the distinct rate of 21% will be owed on the amount of securities income received on that occasion and declared. Supplementary contribution: The Income from the Notes is liable to a "supplementary contribution on securities income" of 4% either in the form of withholding tax, or or in the form of Private Income tax. Income from the Notes which in addition to the 21% withholding tax has also been subject to the supplementary contribution of 4% need not be indicated on the Personal Income form. Income from the Notes which has only been subject to the 21% withholding tax must be declared in the income tax form. Stock exchange tax: Furthermore the stock market tax (TOB) will be levied, currently 0.09% (maximum 500). In the case of private individuals who reside in a Member State of the European Union other than Belgium. Savings Directive: In the case of private individuals residing in a Member State of the European Union other than Belgium, the income from this Note will come under the current scope of the Savings Directive. Belgium will transmit information about the interest payments of this Note to the relevant Member State. The Chapter 1 "Taxation" section of the Base Prospectus describes the taxation system more extensively. Fees and charges The Issuer pays the Distributor a placement fee of 2% included in the Issue Price. The latter also includes a fee for structuring and distributing the securities of a maximum of 1.00% on an annual basis. In the event of resale of the Notes before their End Maturity, brokerage fees will be applied to the price established by ING Belgium SA/nv. The brokerage fee is available on the ING website ( > Investments > Useful information > Charges and regulations > List of charges applied to the main securities transactions). To subscribe or for more information: call surf to go to a branch ING Belgium SA/nv Bank avenue Marnix 24, B-1000 Brussels Brussels RPM/RPR VAT: BE BIC: BBRUBEBB IBAN: BE Publisher: Philippe Wallez cours Saint-Michel 60, B-1040 Brussels E 05/12 Editing Team & Graphic Studio - Marketing ING Belgium. 5