ING Direct 2004 Annual Report Download - page 142

140 ING Group Annual Report 2004
Dividend restrictions ING Group and its Dutch group companies are subject to legal restrictions regarding the amount of
dividends they can pay to their shareholders. The Dutch Civil Code contains the restriction that dividends can only be paid up
to an amount equal to the excess of the company's own funds over the sum of (i) the paid-up capital, and (ii) reserves required
by law. Additionally, certain group companies are subject to restrictions on the amount of funds they may transfer in the form
of cash dividends or otherwise to the parent company.
Furthermore, in addition to the restrictions in respect of minimum capital requirements that are imposed by industry regulators
in the countries in which the subsidiaries operate, other limitations exist in certain countries.
The Executive Board of ING Group believes that these limitations will not affect the ability of ING Group to pay dividends to its
shareholders in the future.
4 SUBORDINATED LOANS
Subordinated loans consists of perpetual subordinated bonds issued by ING Groep N.V. These bonds have been issued to raise
hybrid capital for ING Verzekeringen N.V. and Tier 1 capital for ING Bank N.V.
SUBORDINATED LOANS
Notional Interest Year of First call Balance
amount rate issue date sheet value
2004 2003
EUR 1,000 Variable 2004 30 June 2014 1,000
USD 500 6.2 2003 15 January 2009 366 396
EUR 750 Variable 2003 30 June 2013 750 750
USD 1,100 7.2 2002 15 December 2007 807 872
USD 800 7.05 2002 15 September 2007 586 634
EUR 600 6.5 2001 28 September 2006 600 600
4,109 3,252
EUR 3,743 million (2003: EUR 2,256 million) of these loans has been subsequently provided as subordinated loans by
ING Groep N.V. to ING Bank N.V. under the same conditions as the original bonds.
EUR 366 million (2003: EUR 396 million) has been subsequently provided as subordinated loan by ING Groep N.V. to
ING Verzekeringen N.V. under the same conditions as the original bonds.
The number of debentures held by group companies as at 31 December 2004 was 7,800 with a balance sheet value of
EUR 1 million (2003: 211,086 with a balance sheet value of EUR 21 million).
Unsecured subordinated loans from group companies to ING Groep N.V., which may be renewable at their due dates
at the then prevailing market rates, are included in Subordinated loans.
UNSECURED SUBORDINATED LOANS FROM GROUP COMPANIES TO ING GROEP N.V.
Balance
Interest rate Year of issue Due date sheet value
2004 2003
8.439 2000 31 December 2030(1) 1,100 1,189
9.2 2000 30 June 2030 183 198
7.7 1999 29 June 2029 396
1,283 1,783
(1) Interest rate is fixed until 31 December 2010, thereafter the interest rate will be reset based on three-month LIBOR plus spread.
NOTES TO THE PARENT COMPANY BALANCE SHEET
OF ING GROUP (continued)
2.1
ANNUAL ACCOUNTS