Aegon yesterday fulfilled its commitment to repay to the Dutch State EUR 500 million of the EUR 3 billion in core capital the company secured through its largest shareholder, Vereniging Aegon in 2008.
Aegon announced its intention to repay EUR 500 million on August 17, 2010 when it concluded the approval process with the European Commission.
With this payment of EUR 500 million, the amount repaid to the Dutch government totals EUR 1.5 billion. The first EUR 1 billion was repaid on November 30, 2009.
The payment to the Dutch government yesterday amounts to EUR 563 million, of which
- EUR 500 million for repurchase of 125 million convertible core capital securities,
- EUR 52 million or 10.3% premium, and
- EUR 11 million of accrued interest from May 25, 2010.
This repayment has been made from excess capital which has been upstreamed from Aegon’s operating companies during the third quarter. The Dutch Central Bank has approved this repayment.