Promotional document ING Belgium International Finance (Luxembourg) 6Y EUR Performance Notes 11/17 The product is a debt instrument issued by ING Belgium International Finance and guaranteed by ING Belgium. When subscribing to this product, you are lending money to the Issuer who undertakes to pay annual s on the Coupon Payment Date. The Issuer also undertakes to repay the Notes at 100% of their nominal value at End Maturity. 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 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 personal financial situation, the advantages and risks inherent in an investment in this complex instrument, in particular knowledge of the underlying and interest rates. The ING Belgium International Finance (Luxembourg) 6Y EUR Performance Notes 11/17 (in short ING 6Y EUR Performance Notes 11/17) are for investors looking for an investment: in the long term (6 years) which gives right to a 100% capital redemption by the Issuer at End Maturity, except in the case of bankruptcy or default by the Issuer and/or the Guarantor which offers the possibility of benefiting from a potentially high return (up to 7.27% gross) which will depend on the of a basket of 20 shares, equi-weighted and internationally diversified (in Europe, North America and Asia) Description of the fixing mechanism Each year a gross will be paid according to the (in percentage) of a basket of shares, with a minimum of 1 and a maximum of 7.75% 1. This of the basket of shares will equal the arithmetical mean of the s of its component shares. The the basket or even its mean determines the rate of the gross paid out. The of each share is calculated by comparing its closing price three business days before the relevant Coupon Payment Date with its starting price. For each share, the starting level retained corresponds to its closing price on the Payment Date. The positive of each share is capped at 7.75% 1 and the negative is limited to -20%. By way of an example if the starting level of one of the shares in the basket corresponds to 100 and its closing price three business days before a Coupon Payment Date is 115, the 15% will be limited to 7.75% 1. If, conversely, the closing pride of such share three business days before a Coupon Payment Date is 60, the negative of -40% would be limited to -20%. Taking account of the issue price (i.e. 102%), any s potentially paid out and a redemption price at End Maturity of 100%, the gross actuarial return is at least 1.15% and at most 7.27% in the scenario where the investor holds the product until End Maturity. 1 The s amounts shown in this document are gross figures before the deduction of any taxes and duties (see "Taxation" below). WWW.ING.BE
ING 6Y EUR Performance Notes 11/17 The basket of shares is made up as follows: Name Stock market Sector ISIN code ASTELLAS PHARMA Tokyo CARREFOUR SA Paris DEUTSCHE TELEKOM AG-REG Frankfurt JP3942400007 FR0000120172 DE0005557508 In line with ING's investment strategy, the basket is made up of defensive shares from the, Consumer Goods and sectors. The aforementioned sectors are considered as defensive in ING's current strategy given their low cyclical nature. This means that the impact on the price will be reduced in the event of an economic slowdown. Our current valuation of these sectors indicates that they are possibly "under-evaluated" and that these sectors incorporate any unfavourable information in their current price. Therefore, the levels of these sectors are relatively low, which allows for a higher growth potential. ELI LILLY & CO New York US5324571083 Selection was based on the criteria of high dividends and/or major stock market capitalisations. ENEL SPA Rome FUJITSU LTD Tokyo GLAXOSMITHKLINE PLC London Utilities Information technology IT0003128367 JP3818000006 GB0009252882 Furthermore, at least 2/3 of the stock market analysts who monitor such shares with the various financial institutions must have issued a positive or neutral opinion on the said shares. Investors can enquire at any branch of ING in Belgium to obtain information about the sectors preferred by ING Belgium and recommendations for each share in the basket. IBERDROLA SA Madrid INTEL CORP New York Utilities Information technology ES0144580Y14 US4581401001 The selection process of the basket of shares is influenced by other parameters (dividend, correlation) which can limit the potential return on the investment. KONINKLIJKE KPN NV Amsterdam METRO AG Frankfurt NESTLE SA-REGISTERED Zurich PFIZER INC New York NL0000009082 DE0007257503 CH0038863350 US7170811035 Examples to show how the product works The figures below are purely hypothetical and serve only to provide investors with information on the calculation method of the gross annual s on the basis of different scenarios. The actual realisation of any of these scenarios in the future cannot be guaranteed. ROCHE HOLDING AG-GENUSSCHEIN Zurich SAMSUNG ELECTRONICS CO LTD Seoul SANOFI Paris SUEZ GAZ DE FRANCE SA Paris Information technology Utilities CH0012032048 KR7005930003 FR0000120578 FR0010208488 It is also worth mentioning that the scenarios detailed below do not take account of the scenario of bankruptcy or default by the Issuer and/or Guarantor and that, in that case, investors run the risk of not receiving the amounts to which they would have been entitled and of losing the capital invested. Years 1 to 6: page 1 describes how the s of the basket and each component share in the basket are calculated. TELEFONICA S.A. MMO2 Madrid ES0178430E18 UNILEVER NV-CVA Amsterdam NL0000009355 VODAFONE GROUP PLC London GB00B16GWD56
Best-case scenario ING 6Y EUR Performance Notes 11/17 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Equity Performance Equity Performance Equity Performance Equity Performance Equity Performance Equity Performance Equity booked booked booked booked booked booked 1 33% 7.75% 14% 7.75% 24% 7.75% 89% 7.75% 86% 7.75% 63% 7.75% 2-4% -4.00% 82% 7.75% 57% 7.75% 42% 7.75% 60% 7.75% 19% 7.75% 3 77% 7.75% 4% 4.00% 45% 7.75% 87% 7.75% 85% 7.75% 79% 7.75% 4 22% 7.75% 68% 7.75% -9% -9.00% 29% 7.75% 39% 7.75% 98% 7.75% 5 24% 7.75% 19% 7.75% 47% 7.75% 40% 7.75% 4% 4.00% 34% 7.75% 6 6% 6.00% 71% 7.75% 54% 7.75% 67% 7.75% 19% 7.75% 72% 7.75% 7 41% 7.75% 71% 7.75% 19% 7.75% 24% 7.75% 7% 7.00% 98% 7.75% 8 32% 7.75% 5% 5.00% 23% 7.75% 47% 7.75% 43% 7.75% 55% 7.75% 9 80% 7.75% 2% 2.00% 81% 7.75% 65% 7.75% 92% 7.75% 10% 7.75% 10 52% 7.75% 88% 7.75% 53% 7.75% 55% 7.75% 9% 7.75% 22% 7.75% 11 35% 7.75% -6% -6.00% 56% 7.75% 81% 7.75% 74% 7.75% 22% 7.75% 12-7% -7.00% -4% -4.00% 31% 7.75% 77% 7.75% 14% 7.75% 37% 7.75% 13 71% 7.75% -8% -8.00% 53% 7.75% 67% 7.75% 55% 7.75% 100% 7.75% 14 86% 7.75% 39% 7.75% 14% 7.75% 86% 7.75% 49% 7.75% 27% 7.75% 15 41% 7.75% 91% 7.75% 90% 7.75% 3% 3.00% 14% 7.75% 80% 7.75% 16 56% 7.75% 76% 7.75% 59% 7.75% 68% 7.75% 55% 7.75% 65% 7.75% 17 29% 7.75% 22% 7.75% 52% 7.75% 51% 7.75% 24% 7.75% 25% 7.75% 18 60% 7.75% 53% 7.75% 64% 7.75% 52% 7.75% 48% 7.75% -6% -6.00% 19 33% 7.75% -14% -14.00% 72% 7.75% -6% -6.00% 61% 7.75% 66% 7.75% 20 41% 7.75% 16% 7.75% 41% 7.75% 82% 7.75% 58% 7.75% -15% -15.00% 6.34% 6.34% actuarial return of this scenario = 5.76%. 3.99% 3.99% 6.91% 6.91% 6.83% 6.83% 7.53% 7.53% 5.93% 5.93% BASELINE scenario Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Equity Performance Equity Performance Equity Performance Equity Performance Equity Performance Equity Performance Equity booked booked booked booked booked booked 1 57% 7.75% 62% 7.75% 75% 7.75% 68% 7.75% 44% 7.75% -17% -17.00% 2 71% 7.75% 7% 7.00% 72% 7.75% 39% 7.75% -18% -18.00% 78% 7.75% 3 94% 7.75% 18% 7.75% 100% 7.75% 4% 4.00% 59% 7.75% 60% 7.75% 4 35% 7.75% 15% 7.75% 31% 7.75% 39% 7.75% 43% 7.75% 81% 7.75% 5 9% 7.75% 88% 7.75% 71% 7.75% 69% 7.75% 71% 7.75% 2% 2.00% 6-3% -3.00% -28% -20.00% 45% 7.75% -20% -20.00% 71% 7.75% 59% 7.75% 7 53% 7.75% 62% 7.75% -11% -11.00% 5% 5.00% -21% -20.00% 39% 7.75% 8 5% 5.00% -27% -20.00% 6% 6.00% 52% 7.75% 97% 7.75% 22% 7.75% 9 7% 7.00% 87% 7.75% 12% 7.75% 63% 7.75% 13% 7.75% 46% 7.75% 10-28% -20.00% 93% 7.75% 43% 7.75% 91% 7.75% 54% 7.75% 52% 7.75% 11 32% 7.75% 19% 7.75% 4% 4.00% 99% 7.75% 62% 7.75% 16% 7.75% 12 49% 7.75% -17% -17.00% 20% 7.75% -29% -20.00% -8% -8.00% 60% 7.75% 13 0% 0.00% 98% 7.75% 29% 7.75% -12% -12.00% -4% -4.00% 90% 7.75% 14 51% 7.75% 6% 6.00% 91% 7.75% 64% 7.75% -25% -20.00% 75% 7.75% 15 78% 7.75% 40% 7.75% 70% 7.75% 46% 7.75% 10% 7.75% 95% 7.75% 16 30% 7.75% 11% 7.75% 8% 7.75% 66% 7.75% 82% 7.75% 18% 7.75% 17-11% -11.00% 87% 7.75% -27% -20.00% 79% 7.75% 48% 7.75% 25% 7.75% 18 64% 7.75% 59% 7.75% -5% -5.00% -12% -12.00% -22% -20.00% 68% 7.75% 19 54% 7.75% 93% 7.75% -10% -10.00% 25% 7.75% 30% 7.75% -3% -3.00% 20-26% -20.00% 24% 7.75% 89% 7.75% 41% 7.75% 78% 6.75% -2% -2.00% 2.94% 2.94% actuarial return of this scenario = 2.86%. 3.61% 3.61% 3.63% 3.63% 2.68% 2.68% 0.88% 5.20% 5.20%
ING 6Y EUR Performance Notes 11/17 Worst-case scenario Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Equity Performance Equity Performance Equity Performance Equity Performance Equity Performance Equity Performance Equity booked booked booked booked booked booked 1-74% -20.00% -59% -20.00% 5% 5.00% -95% -20.00% -24% -20.00% -23% -20.00% 2-51% -20.00% 20% 7.75% -88% -20.00% 14% 7.75% -25% -20.00% -70% -20.00% 3-48% -20.00% -65% -20.00% 20% 7.75% 9% 7.75% 12% 7.75% 6% 6.00% 4-44% -20.00% 1% 1.00% -48% -20.00% 17% 7.75% -33% -20.00% -7% -7.00% 5 3% 3.00% -46% -20.00% -11% -11.00% 25% 7.75% 10% 7.75% -66% -20.00% 6-1% -1.00% -73% -20.00% -96% -20.00% -73% -20.00% 25% 7.75% 13% 7.75% 7-54% -20.00% -70% -20.00% -60% -20.00% -27% -20.00% -73% -20.00% -39% -20.00% 8-84% -20.00% -66% -20.00% 7% 7.00% -23% -20.00% -17% -17.00% -44% -20.00% 9-86% -20.00% -40% -20.00% -51% -20.00% 17% 7.75% 3% 3.00% -15% -15.00% 10-78% -20.00% 20% 7.75% -83% -20.00% -100% -20.00% -90% -20.00% -48% -20.00% 11-6% -6.00% 10% 7.75% -16% -16.00% -43% -20.00% -80% -20.00% -34% -20.00% 12-31% -20.00% -96% -20.00% -39% -20.00% 8% 7.75% -31% -20.00% -29% -20.00% 13-88% -20.00% -94% -20.00% -72% -20.00% -60% -20.00% 9% 7.75% -63% -20.00% 14-60% -20.00% -80% -20.00% -80% -20.00% -85% -20.00% -97% -20.00% -24% -20.00% 15-32% -20.00% -24% -20.00% -34% -20.00% -66% -20.00% -35% -20.00% -77% -20.00% 16-65% -20.00% -40% -20.00% -41% -20.00% -27% -20.00% -42% -20.00% -31% -20.00% 17-91% -20.00% -84% -20.00% -94% -20.00% 7% 7.00% -80% -20.00% -39% -20.00% 18-21% -20.00% -77% -20.00% -89% -20.00% -4% -4.00% 14% 7.75% -42% -20.00% 19 20% 7.75% -89% -20.00% -63% -20.00% -74% -20.00% 1% 1.00% -75% -20.00% 20 6% 6.00% -4% -4.00% -100% -20.00% 2% 2.00% -100% -20.00% 11% 7.75% -14.51% actuarial return of this scenario = 1.15%. -13.99% -15.36% -8.43% -10.71% -15.03% A Structured Note's risk class is determined by an analysis of its price behaviour in various market scenarios and is based on past observations of parameters determining the market price, including Risk class volatility. The greater the historical price volatility, the higher the risk class. We differentiate between a total of seven risk classes, ranging from 0 (lowest risk) to 6 (highest risk). The ING 6Y EUR Performance Notes 11/17 are in the risk class 2: 0 1 2 3 4 5 6 Please note that the specific model used by ING Belgium SA/nv to determine the risk class does not take into account certain major risk classes, such as the credit and liquidity risks inherent in ING Belgium SA/nv, or the market risk in the event of divestment before the End Maturity of the Note. ING Belgium SA/nv will communicate to investors via its website (www.ing.be) all the regularly updated information relating to the ING 6Y EUR Performance Notes 11/17 as well as to the basket of shares, including any major change to the risk profile as well as the value of the product. Subsequently, ING Belgium SA/nv may use one or several other communication channels to inform investors correctly.
ING 6Y EUR Performance Notes 11/17 Risks Several types of risks are inherent in this Note: Share price trends The value of the Notes is correlated to changes in the price of the underlying shares which make up the basket. A drop in their price could lead to a drop in the price of the Notes. A rise in share prices could impact positively on their price of the Notes. At End Maturity, even if the price of the shares drops, the Notes will be redeemed at 100% of their nominal value (except in the case of bankruptcy or default by the Issuer and/or the Guarantor). Market interest rate trends The price of the Notes is correlated to market interest rate fluctuations. In case of resale before End Maturity, a rise in interest rates can impact negatively on the market price of the Notes and a drop in interest rates can impact positively on the value of the Notes. Issuer/Guarantor Investors are exposed to the Issuer's and 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 s which could yet be outstanding (see rating below: technical data). Currency The Notes are issued in euros. This presents certain exchange rate risks if an investor's financial activities occur mainly in a currency other than the euro. Liquidity Despite the listing of the Notes on the Luxembourg stock exchange and daily fixing of an indicative price, the market could be rather illiquid. In addition, on the secondary market it will only be possible to sell the Notes once a week. Furthermore, if an investor sells his/ her Notes on the secondary market, the amount received could be lower than the issue price (capital loss risk). Before subscribing to the Notes, potential investors should read the Prospectus and in particular the "Risk Factors" section (Chapter 1 of the Base Prospectus) and its summary. Prospectus The Base Prospectus relating to the EUR 10,000,000,000 Issuance Programme of the Issuer was approved by the CSSF (Financial Sector Supervisory Commission) in Luxembourg on 5 July 2011. The prospectus consists of the Base Prospectus as well as the Final Terms of the ING 6Y EUR Performance Notes 11/17 of 30 September 2011. 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 www.ing.be in the section on " Investments " and then " Capital Protection at Maturity ". A copy is available, free of charge, from any ING branch in Belgium or simply by calling +32 (0)2 464 60 04. 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 a recommendation to conclude any transaction. Although ING Belgium SA/nv has taken all reasonable measures to ensure the accuracy of the information provided in this Promotional Document, neither ING Belgium SA/nv nor its staff can be held liable for any direct or indirect loss or costs suffered as a result of the use of this Promotional Document or of a decision taken on the basis of this Promotional Document, except in the case of serious fault on the part of ING Belgium SA/nv or one of its staff members, or if the information is misleading, inaccurate or inconsistent in relation to the Prospectus. 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 customer s individual situation. Customers must decide whether the financial instrument to which this Promotional Document relates is appropriate in view of their situation. This Promotional Document is intended for the use of the original recipient only 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. To subscribe or for more information: - call 02 464 60 04 surf to www.ing.be - go to an ING branch.
ING 6Y EUR Performance Notes 11/17 ING 6Y EUR Performance Notes 11 technical data Issuer Guarantor and Issuer Guarantor s current rating ING Belgium International Finance SA, route d Esch 52, L-2965 Luxembourg ING Belgium SA/nv, 24, avenue Marnix, 1000 Brussels. Standard and Poor s: A+ (Stable); Moody s: Aa3 (Stable) and 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 www.ing.com/ourcompany/investor-relations/ratings.htm. Nominal amount A minimum of 5,000,000 Subscription period From 3 to 28 October 2011 unless closed early Denomination/Nominal value 100/100% Issue price 102% of the nominal value Payment date 4 November 2011 End maturity 15 November 2017 Coupon Payment Dates Repayment at End Maturity Then in each subsequent year a gross will be paid based on the of a basket of shares, with a minimum of and a maximum of 7.75% (see above). 15 November 2012, 15 November 2013, 17 November 2014, 16 November 2015, 5 November 2016 and 15 November 2017 The Notes will be redeemed at 100% of the nominal value at End Maturity, except in the case of bankruptcy or default by the Issuer and/or the Guarantor. Form 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. Listing and Secondary Market Securities code Taxation Fees Quotation of the Notes on the Luxembourg stock exchange has been requested. Any sale of the Notes before Maturity will be conducted at the market price (see "Risks" above). Investors may obtain an indicative price for the Notes from their financial intermediary throughout their lifetime. ING Belgium will communicate every three months the market value of the product via the website (www.ing.be > Retail > Investments > Practical information). As a market maker ING Belgium SA/nv ensures a certain level of liquidity by offering purchase prices. Under normal trading conditions, the spread - i.e. the difference between the buying price and the selling price on the secondary market - applicable in the case of a resale of securities before End Maturity will be in keeping with market conditions (approximately 1%). Furthermore, brokerage charges of a maximum of 0.50% will be applied to the established price. ISIN: XS0685476367 The Note s collected by private individuals residing in Belgium for tax purposes are liable to the current 15% Belgian withholding tax. In the event of a sale on the secondary market, the amount of securities income must be indicated in your personal income tax return. Furthermore the stock market tax (TOB) will be levied (0.07% - maximum 500). 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 "Taxation" section in Chapter 1 of the Base Prospectus describes the taxation system more extensively. The Issuer will pay the Distributor a placement fee of 2%, included in the Issue Price. A fee for the structuring and distribution of the securities of a maximum of 1% on an annual basis is also included in, the Issue Price. ING Belgium SA/nv Bank avenue Marnix 24, B-1000 Brussels Brussels RPM/RPR VAT BE 0403.200.393 VA T: BE 0403.200.393 BIC: BBRUBEBB IBAN: BE45 3109 1560 2789. Publisher: Philippe Wallez Cours Saint-Michel 60, B-1040 Brussels 704208E 11/11. Editing Team & Graphic Studio - Marketing ING Belgium.