Bloomberg News

ABN Amro Plans to Call Some Bonds as European Union Ban Expires

February 20, 2013

ABN Amro Group NV, the Dutch lender nationalized in 2008, plans to call some bonds as a restriction imposed by European Union regulators after its bailout ends.

The EU rule blocking early repayment of ABN Amro capital instruments expires March 11, the Amsterdam-based lender said in a statement today. ABN Amro plans to redeem some subordinated debt with first call dates in March, April, May and June, according to data compiled by Bloomberg.

The firm, the third-biggest Dutch bank, expects to buy back 1.6 billion euros ($2.2 billion) to 1.8 billion euros of outstanding subordinated debt, depending on the interest rate, Treasurer Erik Bosmans said in a telephone interview.

“This is a milestone,” Bosmans said. “We were pleased to be able to announce this.”

The Netherlands bought Fortis’s Dutch banking and insurance units and its stake in ABN Amro Holding NV in 2008 after the company, renamed Ageas this year, ran out of short-term funding.

Other EU restrictions imposed in April 2011, including a ban on undercutting competitors on the price of some products, continue to apply.

To contact the reporter on this story: Maud van Gaal in Amsterdam at mvangaal@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net


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