SOURCE: FORTIS

May 15, 2008 02:03 ET

Fortis announces a new non-dilutive Core Tier 1 Capital instrument

BRUSSELS, BELGIUM--(Marketwire - May 15, 2008) -


This communication is not an offer for sale of securities in the United States. The securities have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the Securities Act. The company does not intend to offer any of the securities within the United States.

REGULATED INFORMATION

Fortis announces a new non-dilutive Core Tier 1 Capital instrument

Today Fortis announces a Core Tier 1 capital transaction ("NITSH II" or "Non-Innovative Tier 1 Subordinated Hybrid Securities II"). The transaction is the second of its kind, is non-dilutive and euro-denominated. It mainly targets investors - both retail and institutional - across Europe.

Fortis targets placing a benchmark size transaction, carrying a fixed cash coupon within a range of 8.00% to 8.25%, to be determined at closing. The NITSH II will be distributed by the mandated banks, including Fortis and ABN AMRO, through their retail networks and via institutional intermediaries in Europe, who will subsequently place the securities with their clients. The subscription period will open on 15 May or the following days, depending on the target country, and should close by 23 May.

This instrument is non-equity-linked, perpetual and subordinated debt, callable in year 5 (2013) at the issuer's option. The securities qualify as "non-innovative Tier 1", not subject to a 15% regulatory limit. Just like the NITSH I launched in February 2008, this transaction benefits from a pioneer regulatory treatment made possible by the Belgian regulatory environment.

After the successful placement of NITSH I for an amount of USD 750 million - mainly in Asia - this new transaction will allow Fortis to further strengthen its capital ratios, in line with the 2008 first quarter results press release published on 13 May 2008.

Fortis is an international financial services provider engaged in banking and insurance. We offer our personal, business and institutional customers a comprehensive package of products and services through our own channels, in collaboration with intermediaries and through other distribution partners.With a market capitalisation of EUR 38.5 billion (30/04/2008), Fortis ranks among the 15 largest financial institutions in Europe. Our sound solvency position, our presence in more than 50 countries and our dedicated, professional workforce of 60,000 enable us to combine global strength with local flexibility and provide our clients with optimum support. More information is available on www.fortis.com


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pdf version of the press release: http://hugin.info/134212/R/1219514/255995.pdf

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