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Disclaimer Certain of the statements contained in this release are statements of future expectations and other forward-looking statements. These expectations.

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Presentation on theme: "Disclaimer Certain of the statements contained in this release are statements of future expectations and other forward-looking statements. These expectations."— Presentation transcript:

0 IPAA Private Capital Conference January 14, 2009
ING Capital – Natural Resources Group Charles Hall, Managing Director

1 Disclaimer Certain of the statements contained in this release are statements of future expectations and other forward-looking statements. These expectations are based on management’s current views and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those in such statements due to, among other things, (i) general economic conditions, in particular economic conditions in ING’s core markets, (ii) changes in the availability of, and costs associated with, sources of liquidity such as interbank funding, as well as conditions in the credit markets generally, including changes in borrower and counterparty creditworthiness, (iii) the frequency and severity of insured loss events, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) interest rate levels, (vii) currency exchange rates, (viii) general competitive factors, (ix) changes in laws and regulations, and (x) changes in the policies of governments and/or regulatory authorities. ING assumes no obligation to update any forward-looking information contained in this document.

2 Presentation Topics ING -- Group Overview
ING -- Current Financial Condition ING in the Americas Structured Finance -- Natural Resources Selected Transactions Current Market Conditions Update ING Americas Natural Resources Group

3 A global leader in banking, insurance and asset management

4 ING Group – Chronology of Formation
Formed by merger of Nationale Nederlanden and NMB Postbank 1989 1991 1995 1998 1999 2000 2001 2002 2003 2005 2007 2009 NMB Postbank A global commercial bank Merged with Nationale Nederlanden A leading global insurance company Acquired Barings plc Creating a leading global investment bank Acquired Banque Brussels Lambert Creating the largest commercial bank in the Benelux Acquired BHF-Bank One of the largest publicly-traded German commercial banks Acquired Charterhouse A leading institutional agency of stockbrokers in the UK Also acquired Aetna and Reliastar to become a leading insurer in the Americas and Asia Acquired Bank Slaski Creating the largest foreign commercial bank in Poland Increase of stake in Vysya Bank to 43.99% Acquired full ownership of Allgemeine Deutsche Direktbank AG Acquired 19.9% in Bank of Beijing 2nd largest city commercial bank in China and 3rd largest bank in Beijing Acquired a strategic 30% stake in Thailand’s TMB Bank Extending ING’s footprint in the fast growing Asian market Also acquired 100% shares of Turkish Oyak Bank ING Group A global financial institution

5 ING Group, a Leading Global Financial Institution
Source: MSCI Bloomberg October 3, 2008

6 Financial Condition Update
Summary Position through 3Q 2008

7 ING’s Credit Ratings S&P Moody's Fitch Ratings ING Group AA- Aa3
ING Insurance - Short term A-1+ P-1 - Long term ING Bank F1+ AA Aa2 - Financial strength B Outlook Negative Stable

8 Key Points -- Third Quarter 2008
Net profit of EUR 2,982 million for the first nine months of 2008, versus EUR 6,759 million for the first nine months of 2007 Underlying net loss of EUR 585 million for 3Q08, on impairments of EUR 1.5 billion All capital and leverage ratios well within target, even prior to transaction with Dutch State EUR 10 billion purchase of core tier-1 securities by Dutch State in 4Q08 further reinforced capital buffers Sound commercial performance despite difficult operating environment

9 Wholesale Banking – Structured Finance
ING – Our Business Wholesale Banking – Structured Finance

10 Organized Across Six Business Lines
ING Group Finance Risk Insurance Europe Insurance Americas Insurance Asia/Pacific Wholesale Banking Retail Banking ING Direct Life, non-life insurance and asset management Retail and Private banking - Europe and Asia Online consumer bank mature countries

11 ING Provides a Full Range of Products
ING’s lending product is used strategically to assist clients and support transactions Insurance Retail Banking Wholesale Banking Private Banking Asset Management Bridge Loans Acquisition Finance Structured Lending Loan Syndications Securitizations International Trade & Export Finance Transport Finance Loan Products Mergers & Acquisitions Divestments Strategic Alliances Restructuring Valuations Technical Assistance Fairness Opinions Corporate Finance Debt Capital Markets Treasury FX, MM & Derivatives Strategic Trading Financial Markets ING focuses on seven core sectors with dedicated global teams Sector Coverage and Expertise Transportation Financial Institutions Infrastructure NATURAL RESOURCES Utilities & Power Leverage Finance Telecom, Media & Technology

12 Structured Finance Natural Resources Sector
Structured Finance is the specialized lending arm of Wholesale Banking within ING, providing clients with long-term financing needs through a broad range of lending products.

13 Natural Resources Overview
Global Head Debt Products Lending Products Sector-Based Structured Finance Natural Resources Oil & Gas Americas Oil & Gas EMEA Oil & Gas Asia Metals & Mining Offshore Industry

14 Structured Finance Natural Resources
Sector-specific coverage on a global basis Oil & Gas Upstream: Reserve-based lending Field Development Midstream: Gathering / Processing Pipelines Gas Storage Facilities Oil & Gas Downstream Refineries LNG Plants, Terminal & Vessels Ethanol & Biofuel Facilities Petrochemical Plants Offshore Industry Floating Production/ Storage Systems (FPSO’s/FSO’s) Drilling Rigs Oil Field Services Metals & Mining Mining Smelters Steel Works

15 Debt Underwriting in the Americas
Integrated platform in the Americas Domestic Services Domestic Products Cross Border Underwriting 1st Lien Senior Debt European High Yield Commitment Transaction Execution Revolver Facilities European Mezzanine Access to Network Sector Expertise 2nd Lien Senior Debt Advisory (Corporate Finance) High Yield/ Bridge Loan ING is committed to offering a full product range to clients active in identified core markets

16 Global Syndication Capabilities
A global platform with regional focus Europe 49 Professionals London Amsterdam Asia 10 Professionals Americas 12 Professionals Hong Kong New York Singapore Local point of contact for global access to ING products, extensive sector expertise and broad local network

17 Selected Upstream & Midstream Experience
Strong track record in the US Closing June 2008 Natural Resources US 11/07 Enterprise Product Partners USD 1.8 bio 5-Year Senior Unsecured Revolving Credit Facility Co-Lead Arranger Natural Resources US 04/07 Kinder Morgan Inc USD 7.3 bio Senior Secured Credit Facilities 03/07 Natural Resources US Bobcat Gas Storage LLC USD 185 mio Senior Secured Credit Facilities Syndication Agent Co-Lead Arranger Natural Resources US 03/07 SG Resources Mississippi LLC USD 235 mio Senior Secured Credit Facilities Natural Resources US 12/06 NorTex Gas Storage Co. LLC USD 335 mio Senior Secured Credit Facilities Co-Lead Arranger Natural Resources US 08/06 Bluewater Natural Gas Holdings LLC 5-Year Senior Unsecured Revolving Credit Facility USD 120 mio Natural Resources US 07/06 Energy Transfer Equity LP USD 650 mio Senior Secured Credit Facilities Natural Resources US 07/06 Plains All American Pipeline USD 1.6 bio 5-Year Senior Unsecured Revolving Credit Facility Natural Resources US 05/06 Poseidon Oil Pipeline Co. USD 150 mio Revolving Credit Facility Natural Resources US 03/06 Pine Prairie Energy Center USD 320 mio Senior Secured Credit Facilities Syndication Agent Natural Resources US 10/05 Targa Resources, Inc. USD 2.5 bio Senior Secured Credit Facilities Natural Resources US 05/05 Wolfcamp Oil and Gas Trust USD mio Volumetric Production Payment Senior Secured Term Loan US 02/05 Sabine Pass LNG L.P. USD 822 mio Senior Debt 10 Year Term Loan Facility for the Construction of Sabine Pass LNG Terminal in Louisiana . Natural Resources Co-Arranger & Co-Documentation Agent Trinidad/Tobego 01/05 National Gas Company of Trinidad & Tobago Term Loan Facility for the Cross Island Pipeline Project Natural Resources USD 200 mio Mandated Lead Arranger & Underwriter

18 Looking Forward

19 ‘Mad Max’ and the Banks ‘Moral Hazard’, well defined…….
Good luck to the survivors….. and remember why you did.

20 ‘Credit Crunch’ -- Bank losses mount
The second reason why some argue the ‘worst is over’ is that the banks are facing up to their problems Globally banks have written down $323bn As you can see this is evenly split between the US and Europe Moreover they’ve done nearly $250bn in capital raising …just over $60bn of this has come from Eastern investors and funds 1: Capital being raised: $655.5bn (excludes TARP) 2: Assets written down: $760.3bn Are we getting under this problem finally?

21 Credit market strains slowly abating
Likewise, the CDS market is also beginning to register some decline in investment and speculative debt Theoretically calculated cumulative probabilities of default remain exceptionally high… …relative to what has happened in the past… …write backs possible

22 “When will life get back to the way it was?......”
The $64 Question……. “When will life get back to the way it was?......”

23 What triggers a recovery in a loan market?
Source: Reuters Loan Pricing Corporation

24 Interbank tension easing slowly
Counterparty risk may also be abating slowly Interbank spreads have been falling as bank lending guarantees are believed, and liquidity injections work Still a long way to go, but direction encouraging

25 Secondary Market - where’s the ‘Bid’?
Average Secondary Spreads by Rating B Loans BB Loans All BB/B Loans Includes all priced facilities, excluding those in default. Assumes discount from par is amortized evenly over a three-year life. Excludes all facilities in default.

26 The Way Forward Financial services companies are facing unprecedented market volatility, limited liquidity, and intensified competition for deposits, which we see continuing into 2009. We are executing our strategy in the context of this challenging environment by focusing on growing client balances, while keeping a close eye on margins and expenses. We are containing our costs in mature markets. We continue to adapt our product range to meet our customers’ changing needs. We invest to expand our distribution in growth markets.

27 Americas Team - Natural Resources
ING Wholesale Banking Americas Team -- Natural Resources Americas Team - Natural Resources

28 ING Wholesale - Natural Resources Group
Contacts Natural Resources - Houston Office Charles E. Hall Managing Director (713) Juli Bieser Director (713) Huma Manal Vice President (713) Michael Price Director, Technical Services (713) Josh Strong Associate (713) Natural Resources - New York Office Richard Ennis Managing Director & Head of Group (646) Michael Zander Managing Director (646) Cheryl LaBelle (646) Subha Pasumarti Director (646)


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