Bancherul - BANCI / ENGLISH / Fortis successfully places EUR 625 million with non-dilutive Core Tier 1 Capital instrument

Fortis today announces that it has successfully placed an amount of EUR 625 million through a Core Tier 1 capital transaction ("NITSH II" or "Non-Innovative Tier 1 Subordinated Hybrid Securities II"). The transaction carries a cash coupon of 8.00%.

Fortis announced the launch of NITSH II on 15 May 2008. The transaction was the second of its kind, was non-dilutive and euro-denominated, and mainly targeted retail and institutional investors across Europe.

Gilbert Mittler, Member of Fortis Executive Committee responsible for Finance, Risk and General Counsel comments: "Fortis is happy with this outcome. We have reached our stated benchmark target, further solidifying Fortis’s capital position."

The NITSH II was distributed by the mandated banks, including Fortis and ABN AMRO, through their retail networks and via institutional intermediaries in Europe.

This instrument is non-equity-linked, perpetual and subordinated debt, callable in year 5 (2013) at the issuer’s option. As with the NITSH I launched in February 2008, the securities qualify as "non-innovative Tier 1" not subject to a 15% regulatory limit.

After the successful placement of NITSH I for an amount of USD 750 million - mainly in Asia - this new transaction demonstrates the ability of Fortis to benefit from market opportunities to further strengthen its capital ratios, in line with its capital management policy.