A consortium of RRJ Capital and Temasek Holdings have agreed to invest 1.3 billion euros ($1.8 billion) in ING Groep’s European and Japanese insurance and investment management unit ahead of its planned IPO, the Dutch financial services firm said in a statement on Wednesday.
ING is preparing to list the unit, called NN Group, later this year, with three Asian institutions coming in as anchor investors.
Asia-based private equity firm RRJ Capital will invest 750 million euros, while Singapore state investor Temasek and its unit SeaTown jointly agreed to invest 525 million euros, the statement said.
In return, the consortium will get NN Group shares and subordinated ING Group notes they could exchange into NN Group shares.
As part of the deal, ING will issue a total of 150 million euros worth of shares in NN Group at the IPO to the three investors, the statement said.
RRJ has so far invested about $1.5 billion in ING units over the past year. It manages $5.9 billion in two private equity funds. ($1 = 0.7237 Euros)
(Reporting by Stephen Aldred and Denny Thomas; Editing by Miral Fahmy)Get your FREE trial or subscribe now to Buyouts to find new deal opportunities, super-charge your fundraising efforts and track top managers.