Three Asian institutional investors have agreed to invest €1.275 billion (US$1.768 billion) in ING Group’s European and Japanese insurance and investment management unit as anchor investors ahead of the unit’s planned IPO, according to a company announcement made by ING Group.
Hong Kong-based Asian private equity firm RRJ Capital will invest €750 million (US$1.04 billion) in cash in ING’s unit NN Group at its planned IPO, which will take place later this year.
The investments are comprised of two parts. The three investors will purchase €150 million of NN Group’s IPO shares.
The remaining €1.125 billion will be invested via purchasing ING Group convertible bonds, which has a 4% coupon and can be converted into NN Group shares over time.
RRJ and Temasek have close relationships. Last month, the two joined forces in another deal, injecting US$250 million in Chinese logistics warehouse developer Shanghai Yupei Group.
RRJ currently manages US$6 billion across two private equity funds focused on China and Southeast Asia. The firm’s co-CEO is Charles Ong, formerly with Temasek Holdings holding positions including chief investment officer and chief strategy officer.
RRJ’s founder is Charles Ong’s brother, Richard Ong, former founder and CEO of Hopu Fund. Before that, Ong spent 15 years with Goldman Sachs with the latest position as co-head of Asia Ex Japan investment banking.