SKN | ING to Redeem $1.5 Billion Perpetual Capital Securities as It Optimises Its Capital Structure

Key Takeaways:

• ING will redeem $1.5 billion of 5.750% Perpetual Additional Tier 1 Contingent Convertible Capital Securities on November 16, 2026.
• The redemption will be completed at 100% of principal amount, with accrued and unpaid interest paid separately under the securities’ terms.
• The transaction forms part of ING’s stated objective of continuously optimising its capital structure while considering capital requirements, regulatory approval and market conditions.
• Future calls on ING’s outstanding debt securities will be assessed on an economic basis, taking into account the interests of the bank’s stakeholders.

ING is moving to redeem $1.5 billion of perpetual Additional Tier 1 capital securities, reinforcing the Dutch banking group’s ongoing approach to managing the composition and cost of its regulatory capital. The redemption is scheduled for November 16, 2026, the securities’ designated call date, and will be executed according to their existing terms.

ING Executes a Planned Capital Structure Adjustment

The securities carry a 5.750% coupon and qualify as Perpetual Additional Tier 1 Contingent Convertible Capital Securities. ING will redeem them in full at their principal amount. Accrued and unpaid interest due on the redemption date will be paid through the normal process to holders of record as of November 13.

For ING, the significance is less about the size of the redemption in isolation and more about how the bank manages the composition of its capital base over time. Perpetual Additional Tier 1 instruments form part of the regulatory capital architecture used by banks, and decisions around calling such securities can influence funding economics and the structure of loss-absorbing capital.

Capital Efficiency Becomes the Key Consideration

ING explicitly frames the redemption within its objective of continuously optimising its capital structure. That gives the transaction a broader strategic context: the bank is assessing whether existing capital instruments remain economically appropriate as its balance sheet, regulatory requirements and market conditions evolve.

For a large international bank, capital management requires balancing several competing considerations. Capital must remain sufficient to support lending and other activities, while the cost and composition of that capital also need to remain efficient. Calling an eligible instrument can therefore represent a deliberate recalibration rather than simply a refinancing event.

ING Keeps Future Capital Decisions Flexible

The bank has also made clear that future decisions concerning calls on other outstanding debt securities will be considered on an economic basis. ING will assess prevailing market conditions, regulatory approval and applicable capital requirements, alongside the interests of its stakeholders.

This approach preserves flexibility for ING as financing conditions change. It also signals that future capital actions will not necessarily follow a predetermined timetable, with the economics of each instrument assessed against the bank’s broader capital position.

Why ING’s Capital Discipline Matters

For sophisticated investors and internationally structured wealth portfolios, ING’s decision highlights an important feature of major-bank analysis: capital quality and capital efficiency matter alongside headline earnings. The way a bank manages regulatory instruments can affect its funding profile, financial flexibility and capacity to deploy capital across its businesses.

ING’s $1.5 billion redemption therefore represents a targeted adjustment within its broader capital-management framework. Going forward, attention will remain on how the bank evaluates additional capital instruments as market pricing, regulatory requirements and balance-sheet priorities evolve. For a confidential discussion regarding your cross-border banking structure, bank-credit exposure or international wealth strategy, contact our senior advisory team.