Temasek, RRJ to invest in ING

Temasek, Singapore's state-owned investment firm, and RRJ Capital Ltd have agreed to invest USD1.8 billion in the insurance business of the Amsterdam-based ING Group before the unit's IPO. RRJ will invest USD1.041 billion, while Temasek will invest a total of USD728.85 billion on NN Group, the insurance unit of ING. According to Stephen Forshaw, a spokesman for the investment company, the investment adds to Temasek’s insurance presence in central, eastern and the rest of Europe. NN Group has insurance operations in the Netherlands, Poland, Turkey, Czech Republic, Slovak Republic, Romania, Hungary, Bulgaria, Belgium, Spain, Greece and Luxembourg, and life insurance operations in Japan.

RRJ Capital Ltd., run by Charles Ong, and his former employer Temasek Holdings Pte, agreed to invest USD1.8 billion in ING Groep NV (INGA)’s NN insurance business before the unit’s initial public offering.

ING will get EUR750 million in cash from RRJ, EUR425 million from Temasek, Singapore’s state-owned investment company, and EUR100 million from Temasek-owned Seatown Holdings International, Amsterdam-based ING has said. The Dutch lender will allocate EUR150 million of NN shares at the IPO and issue subordinated ING notes in exchange, a press release stated.

ING was ordered by European Union regulators to dispose of its entire global insurance operations to get approval for its bailout in 2008.