The Dutch State to Sell ING Illiquid Assets Back-up Facility Assets
THE HAGUE, Netherlands -- December 4, 2013
Today, the Dutch State announces its intention to start a competitive auction
process to sell the non-agency residential mortgage backed securities (RMBS)
underlying the ING Illiquid Assets Back-up Facility. The Dutch State Treasury
Agency (DSTA) will be responsible for the sale on behalf of the Dutch State.
In January 2009, the Dutch State and ING agreed on the creation of an Illiquid
Assets Back-up Facility (IABF). The IABF is one of the measures taken by the
Dutch State to preserve financial stability in the banking sector. The
transaction resulted in a transfer of the risk on 80% of ING’s portfolio of US
non-agency residential mortgage backed securities (RMBS) to the Dutch State.
On November 1, 2013, the Dutch State announced it had reached an agreement
with ING to unwind the IABF.
The decision of the Dutch State to begin with the sale of the portfolio is
based on the continued improvement in the US housing market and a high level
of interest by investors for non-agency RMBS securities. While the DSTA
expects that it will be able to divest the assets within a period of 12
months, there will be no fixed deadline for completion of the sale of the
portfolio. The DSTA reserves the right to postpone the sale, should market
BlackRock Solutions will be responsible for the execution of the sale of the
securities on behalf of the DSTA. The sale will take place via a competitive
auction process through a number of selected broker-dealers. Reverse inquiries
of at least US$ 5 billion notional are accepted. If the notional outstanding
balance of the portfolio is smaller than US$ 5 billion, only indicative bids
for the entire portfolio will be accepted. A short-list of broker-dealers will
be selected for an auction based on the competitiveness of their respective
reverse inquiry bids.
All reverse inquiries should be sent to: IABFinquiries@blackrock.com. Please
visit the DSTAwebsite foradditional information:
In the interest of supporting a transparent and competitive auction process,
the DSTA will periodically release public announcements pertaining to
developments regarding the wind down of the IABF on its website.
Dutch State Treasury Agency
+31 70 342 4099
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