The Dutch government is investing the equivalent of $13 billion in ING Groep N.V.
ING, Amsterdam, the Netherlands, says the cash infusion will strengthen its ability to handle the current economic environment.
The Dutch government will get non-voting shares in ING, ING says.
ING says the deal will strengthen its insurance balance sheet and reduce its debt-equity ratio to about 10%.
The Dutch government announced Oct. 9 that it would make capital available to domestic financial companies that are fundamentally sound.
The ING transaction “does not dilute our existing shareholders while providing additional security to our 85 million customers,” says Michel Tilmant, chief executive of ING.
ING is the parent of ING U.S. Financial Services, West Chester, Pa.
Separately, ING announced today that it has agreed to sell its Taiwanese life insurance business for $600 million to Fubon Financial Holding Company Ltd., Taipei, Taiwan.
Fubon Financial plans to pay for the deal with a combination of stock and subordinated debt securities.
ING would emerge from the transaction with a 5% stake in Fubon Financial, according to ING and Fubon Financial.