Commercial Document – Product sheet
ING Belgium International Finance (Luxembourg)
3Y EUR Phoenix Memory Autocallable Airbag Notes 10/16
linked to the EUROSTOXX Select Dividend Price 30 (SD3E)
Classe de Risque
0
1
2
3
4
5
6
(please read the section on risks and other important information hereunder carefully)
This structured product is considered as particularly complex for investors, in the
light of the FSMA moratorium with respect to the commercialisation of complex
structured products. This document is addressed solely to clients who hold
moveable assets with ING Belgium SA that exceed EUR 500,000 and that allow an
investment in structured products with the portion of the moveable assets held
with ING Belgium SA that exceeds EUR 500,000.
Characteristics
These Notes are designed for clients looking for an investment:
 which depends on the evolution of the EUROSTOXX Select Dividend Price 30 (SD3E) index,
 with a 3 year maturity (in the event that the conditions for early redemption have
not been met),
 producing, under certain hypotheses, a yearly gross coupon of 5.00%1, with
a «memory effect» allowing for recuperating any previously unpaid coupons.
and who accept:
Âa risk on capital in the event the Final Level of the Index has decreased by more
than 42.50% compared to its Initial Level (or is lower than 57.5% of the Initial Level).
The loss will be of minimum 42.50% and, in extreme circumstances, could total the
invested capital in its entirety.
 the possibility of an early redemption.
Short Description2
In the event that no early redemption occurs, these Notes will be redeemed at Maturity (October
2nd, 2016) at an amount which will depend on the evolution of the level of the EUROSTOXX
Select Dividend Price 30 (SD3E) index (the « Index »).
At each Annual Observation Date, if the level of the Index is:
 equal to or higher than the Initial Level, the Notes will be redeemed early (Autocallable)
at 100% of their nominal value and a gross coupon of 5.00%1 will be paid. Every
previously unpaid coupon will also be paid in this event («memory effect»).
 equal to or higher than the Coupon Barrier Level (i.e. 57.50% of the Initial Level) but
lower than the Initial Level, the Notes will not be redeemed early and a gross coupon
of 5.00%1 will be paid. Every previously unpaid coupon will also be paid in this event
(“memory effect”).
 below the Coupon Barrier Level, the Notes will not be redeemed early and no coupon
will be paid.
At Maturity, if the Final Level is:
 equal to or higher than 57.50% of the Initial Level, the Notes will be redeemed at 100%
of their nominal value and a gross coupon of 5.00%1 will be paid. Every previously unpaid
coupon will also be paid in this event (“memory effect”).
 lower than 57.50% of the Initial Level, the Notes will be redeemed at an amount which
takes into account the negative performance of the Index and no coupon will be paid. This
amount will be inferior to 57.50% of the initially invested capital and could be as low as 0
in an extreme case.
« The memory effect » allows to get previously unpaid coupon back
In case the Notes do not pay a coupon for a specific year and in case the Index is observed above
or equal to 57.50% of the Initial Level at a future Observation Date, the investor will receive a gross
coupon of 5.00%1 as well as any previously unpaid coupons.
1
2
All coupon rates are gross figures before the deduction of any taxes and duties (see «Taxation» hereunder).
For an overview of the data and the definition of the Index and the Barrier Level, consult the Technical Data in fine.
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The product offered is a
derived instrument without
capital protection issued by
ING Belgium International
Finance and guaranteed by
ING Belgium SA/nv. When
subscribing to this instrument,
the investor is lending money
to the Issuer who undertakes
to pay the investor a certain
amount either on an Early
Redemption date or at
Maturity. The Issuer does not
guarantee capital redemption
at Maturity at 100%. In case
of bankruptcy or payment
default of the Issuer and/or
the Guarantor, the investor
risks losing the amounts to
which he would have been
entitled as well as the invested
capital. In case of negative
evolution of the Index at
Maturity below 57.50% of the
Initial Level, the investor risks
losing a minimum of 42.50%
of the invested capital.
This complex instrument is
reserved for clients with
sufficient
experience
to
understand
the
product
parameters offered and with
sufficient
knowledge
to
assess, based on their personal
financial
situation,
the
advantages of and the risks
inherent to an investment in
this complex instrument,
particularly who are familiar
with the Index and interest
rates and who accept taking a
risk on capital.
ING Belgium International Finance (Luxembourg)
3Y EUR Phoenix Memory Autocallable Airbag Notes 10/16
Evolution of the EUROSTOXX Select Dividend Price 30 (SD3E) Index
05/09/2008 - 04/09/2013
The EUROSTOXX Select Dividend Price 30
Index (Bloomberg code SD3E Index) is a
price index which allows investors to track
companies paying high dividends selected
from 12 countries in the Eurozone. A price
index is not adjusted for dividends, investors
do not benefit from the distribution of such
dividends.
Past performance is no guarantee of future results.
Source : Bloomberg
Scénarii
Optimistic Scenario
The Observation Level of the Index at the end of the first year is 80% of the Initial Level. The Notes will not be redeemed early and a gross
coupon of 5.00%1 will be paid at the relevant Coupon Payment Date. At the end of the second year, the Observation Level of the Index is 55%
of the Initial Level. The Notes will not be redeemed early and no coupon will be paid at the relevant Coupon Payment Date. At Maturity, the
Final Level is 75% of the Initial Level. In this case, the Notes will be redeemed at 100% of their nominal value and a gross coupon of 10.00%1
will be paid (or twice 5.00% due to the “memory effect”). The gross actuarial return (before costs and taxes) of this scenario is 4.92%.
Other Optimistic Scenario
The Observation Level of the Index at the end of the first year is 110% of the Initial Level. The Notes will be redeemed early at 100% of
their nominal value and a gross coupon of 5.00%1 will be paid at the relevant Coupon Payment Date. The gross actuarial return (before
costs and taxes) of this scenario is 5.00%.
Pessimistic Scenario
The Observation Level of the Index at the end of the first year is 80% of the Initial Level. The Notes will not be redeemed early and a gross
coupon of 5.00%1 will be paid at the relevant Coupon Payment Date. At the end of the second year, the Observation Level of the Index is
55% of the Initial Level. The Notes will not be redeemed early and no coupon will be paid at the relevant Coupon Payment Date. At maturity,
the Final Level is 40% of the Initial Level. In this case, the Notes will be redeemed at 40% of their nominal value (i.e. loss of capital of 60%)
and no coupon will be paid. The gross actuarial return (before costs and taxes) of this scenario is -24.60%.
The scenarii described above are purely hypothetical and offer no guarantee that one of those scenarii will ever materialize
in the future. Such scenarii do not take into account the scenario of bankruptcy or payment default by the Issuer and/or
the Guarantor. In such case, the investor risks not receiving the amounts to which he would have been entitled and losing
the invested capital, irrespective of the evolution of the Index.
Mechanism
At each Annual Observation Date: Is the Observation Level equal to or higher than the Initial Level?
YES
NO
The Notes will be redeemed early at 100% of their nominal
value. A gross coupon of 5.00% will be paid (+ any missed
coupons thanks to the «memory effect»).
A gross coupon of 5.00% will be paid
(+ any missed coupons thanks to the «memory effect»).
The Notes are not redeemed and continue.
Is the Observation Level equal to or higher than the Coupon
Barrier Level (57.50% of the Initial Level)?
YES
NO
The Notes are not redeemed early and no coupon is paid.
The Notes continue.
At Maturity: Is the Final Level equal to or higher than the Coupon Barrier Level (57.50% of the Initial Level)?
YES
NO
The Notes will be redeemed at 100% of their nominal
value + a gross coupon of 5.00%
(+ any missed coupons thanks to «memory effect»).
Redemption per Note at EUR 1,000 * (Final Level/Initial Level),
minimum of 0 (Capital at risk, no coupon)
Private Banking | 2
ING Belgium International Finance (Luxembourg)
3Y EUR Phoenix Memory Autocallable Airbag Notes 10/16
Risk Factors
Risk of capital loss
At maturity, if the Final level of the Index has lowered for more than 42.50% compared to the Initial Level the redeemed capital
will be lower by minimum 42.50% compared to the initially invested capital and can, in extreme cases, even be 0. The investor
will in such face a partial or total partial or total loss of capital.
Risk of fluctuation in the value of the Notes (market risk)
Certain parameters such as:
- the prospect of a review of the Guarantor’s rating,
- the trend in interest rates on financial markets (a rise in market interest rates impacts negatively on the value of the Notes
and a drop in market interest rates impacts positively on the value of the Notes),
- the evolution of the Index (a drop in the Index level entails a drop in the value of the Notes and a rise in the Index level has a
positive impact on the value of the Notes),
impact positively or negatively on the value of the Notes during their lifetime and entail a capital gain or a capital loss in the
event of resale of the Notes by investors before their maturity.
Insolvency Risk of the Issuer and /or the Guarantor
Investors are exposed to the Issuer’s and/or the Guarantor’s risk of insolvency (bankruptcy or default), which may result in the
partial or total loss of the capital initially invested as well as any coupons due but unpaid (see “Guarantor’s Current Rating” on
the last page: Technical Data).
Liquidity Risk
The Notes are not listed on any stock exchange. Save exceptions, ING Belgium SA/nv insures investors of market liquidity by
offering a price to investors. Such price is determined by ING Belgium SA/nv on the basis of models which are specific to it and
take account of the market parameters at the time (see «Risk of fluctuation in the value of the Notes» above). The price could
be lower than the nominal value of the Notes (capital loss risk). Under normal market conditions, the difference between
the buying price and the selling price on the market will be approximately 1.00%. Furthermore, the price offered by ING
Belgium SA/nv does not include brokerage fees or any taxes (see «Technical Data»).
Other Risk Factors
Prior to subscription, the investor is requested to read the Technical Data in fine, the Base Prospectus and in particular the
section on “Risk Factors” and its summary and the Issue Specific Summary.
Risk Class specific to ING Belgium SA/nv
The model used by ING Belgium SA/nv to determine the risk class of a Structured Note analyses the trend of its price in
different market scenarios (best-case, baseline, worst-case). Such analysis is based on extreme levels of the underlying
values observed historically on the market. The greater the price volatility, the higher the risk class. We differentiate between
a total of seven risk classes, ranging from 0 (lowest risk) to 6 (highest risk).
This model does not take into account certain major types of risk, such as the credit and liquidity risks inherent
in ING Belgium SA/nv, or the market risk in the event of resale before the Maturity of the Note.
The ING 3Y EUR Phoenix Memory Autocallable Airbag Notes 10/16 are in risk class 6.
0
1
2
3
4
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ING Belgium International Finance (Luxembourg)
3Y EUR Phoenix Memory Autocallable Airbag Notes 10/16
Further important information
Prospectus
The Notes are the object of a public offer. This Product Sheet is a
promotional document produced and distributed by ING Belgium
SA/nv in its capacity of Distributor of the Notes. Therefore it is not
and should not be interpreted as a recommendation to subscribe,
or advice or recommendation to conclude any transaction.
The « Base Prospectus for the
Issuance of Index Linked Notes (Level
2) » (the «Base Prospectus») of the
Issue was approved by the CSSF in
Luxembourg on July 31th 2013.
Moreover this Product Sheet is communicated or made available by
ING Belgium SA/nv to all or part of the clientele and is not based on
an examination of the individual situation of a particular customer.
The customer must decide whether the financial instrument to which
this Product Sheet relates is appropriate in view of his/her situation.
The Prospectus consists of the Base
Prospectus as well as the Final Terms
of the ING 3Y EUR Phoenix Memory
Autocallable Airbag Notes 10/16 of
September 6th, 2013. The Prospectus
only exists in English, except the Base
Prospectus and the Issue Specific
Summary, which also exist in French.
This Product Sheet is intended for the use of the original recipient
and must not be reproduced, redistributed or passed on to any
other person or published, in whole or in part. The Notes will not
be registered pursuant to the United States Securities Act of 1933,
as amended, and cannot be offered or sold in the United States,
nor to American citizens, even outside the United States, nor to
Green Card holders.
The Base Prospectus Level 1
can be consulted at the website
www.ingmarkets.com > ING
Markets > Downloads > IBIF
Programme. The Final Terms
can be consulted at the website
www.ingmarkets.com > ING
Markets > Products > search «
XS0967532333 » > Downloads.
Information subsequent to subscription
The investor who keeps his Notes on a securities portfolio with ING Belgium SA/nv will be able to follow up on the
value of the Notes on a daily basis through Home’Bank. After closure of the of the Subscription Period, ING Belgium
SA/nv will communicate through its website (ing.be) all important informations about ING 3Y EUR Phoenix Memory
Autocallable Airbag Notes 10/16. The investor can also contact his Private Banker to obtain additional information
concerning the ING 3Y EUR Phoenix Memory Autocallable Airbag Notes 10/16.
Private Banking | 4
ING Belgium International Finance (Luxembourg)
3Y EUR Phoenix Memory Autocallable Airbag Notes 10/16
ING 3Y EUR Phoenix Memory Autocallable Airbag Notes 10/16
Technical Data
Issuer
ING Belgium International Finance S.A., 52, route d’Esch, L-1470 Luxemburg
Guarantor and Distributor
ING Belgium SA/nv, Marnixlaan 24, B-1000 Brussels
Guarantor’s Current Rating
Standard and Poor’s: A+ (negative outlook); Moody’s: A2 (negative outlook) en Fitch: A+
(negative outlook). Ratings are given for purely information purposes and are not
recommendations to buy, sell or keep securities of the Issuer. Rating agencies can suspend,
change or withdraw them at any time. Rating notices can be viewed on the following website
www.ing.com/our-company/investor-relations/ratings.htm
Nominal Amount
Minimum EUR 2,000,000
Subscription Period
From September 9th to September 27th, 2013 included (early closing possible)
Denomination/Nominal
Value
EUR 1,000/100%
Minimum Subscription
Amount
EUR 1,000
Issue Date and Payment
Date
Octobre 2nd, 2013
Maturity
Octobre 2nd, 2016
Issue Price
100% of the Nominal Value
Index
The EUROSTOXX Select Dividend Price 30 Index (Bloomberg code SD3E Index) is a price
index which allows investors to track companies paying high dividends selected from 12
countries in the Eurozone. A price index is not adjusted for dividends, investors do not
benefit from the distribution of such dividends.
http://www.stoxx.com/indices/index_information.html?symbol=SD3E
Initial Level
The closing level of the Index on September 27th, 2013
Final Level
The closing level of the Index on September 27th, 2016 (Final Observation Date)
Observation Level
The closing level of the Index on Annual Observation Date
Annual Observation Dates
29 September 2014, 28 September 2015
Early Redemption
If the Observation Level is equal to or higher than the Initial Level, the Notes will be redeemed
at 100% of their Nominal Value on the relevant Early Redemption Date plus a gross coupon
(before taxes and duties) of 5.00% (+ any missed coupon thanks to the memory Effect).
Coupon Barrier Level
57.50% of the Initial Level of the Index
Early Redemption Dates
2 October 2014, 2 October 2015
Coupon Payment Dates
2 October 2014, 2 October 2015 et 3 October 2016
Redemption at
Maturity Date
If the Final Level is equal to or higher than 57.50% of the Initial Level, the Notes will be
redeemed at 100% of their nominal value and a gross coupon of 5% (before Taxes and duties)
will be paid. Thanks to the Memory Effect, each coupon which was not paid earlier will be
paid. If the Final Level is lower than 57.50% of the Initial Level, the Notes will be redeemed at a
value which takes into account the negative performance of the Index (equal to EUR 1.000 *
(Final Level / Initial Level), with a minimum of 0) and no coupon will be paid.
Private Banking | 5
ING Belgium International Finance (Luxembourg)
3Y EUR Phoenix Memory Autocallable Airbag Notes 10/16
Conditional Coupon
A gross coupon of 5.00% (or EUR 50,00 per denomination EUR 1,000) will be paid each year
if the Observation Level is equal to or higher than the Coupon Barrier Level.
Form
Delivery solely on a securities portfolio with a financial institution. Custody in an account with
ING Belgium SA/nv is free.
ISIN
ISIN : XS0967532333
Resale before Maturity
Every resale of the Notes prior to Maturity will take place at a price determined by ING
Belgium SA based on its proper models and taking into account market parameters. This
price can potentially be lower than the nominal value of the Notes (market risk ). Investors
can request an indicative price from ING Belgium at any time during the tenor of the Notes.
For natural persons residing in Belgium for tax purposes:
Belgian withholding tax : income from Notes is liable to the Belgian withholding tax
(current 25%). In case of sale on a secondary market, the amount of investment income
received and declared will be subject to a distinct Personal Income Tax rate of 25%. Income
from Notes on which the Belgian withholding tax of 25% has has been applied does not
have to be reported anymore in the Personal Income Tax return.
Taxation
Stock exchange tax: : in case of sale on the secondary market, a stock exchange tax (TOB)
will be levied (0,25% - maximum EUR 740 per transaction).
For natural persons who reside in a Member State of the European Union other
than Belgium
The income from the Notes does not fall under the application scope of the European
Savings Directive.
The chapter on «Taxation» of the Base Prospectus (p. 626 and f.) describes the taxation
system more extensively.
Fees and charges
The Issue Price includes a fee for structuring and distributing the securities of a maximum of
1% on an annual basis. In the event of resale of the Notes before their Maturity, brokerage
fees will be applied to the price established by ING Belgium SA/nv. The brokerage fee is
available on the ING website (ing.be > Investments > Useful information > Charges and
regulations > List of charges applied to the main securities transactions).
ING Belgium SA/nv – Bank – Registered office: avenue Marnix 24, B-1000 Brussels – Brussels RPM/RPR – VAT: BE 0403.200.393 – BIC: BBRUBEBB – IBAN: BE45 3109 1560 2789.
Publisher: Inge Ampe – Cours Saint-Michel 60, B-1040 Brussels © Editing Team & Graphic Studio – Marketing ING Belgium – 707718E – 30/08/2013
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