Ad Hoc Capital Injections

Belgium: Fortis Group Capital Injection, 2008

Announced: September 29, 2008

Purpose

To maintain the solvency of Fortis Bank Belgium and protect depositors and customers

Key Terms

  • Announcement Date
    September 29, 2008
  • Operational Date
    September 29, 2008
  • Date of Final Capital Injection
    Not applicable
  • End Date
    May 12, 2009
  • Source(s) of Funding
    SFPI with backing of Belgian Government
  • Administrator
    Federal Participation and Investment Company (SFPI)
  • Size
    EUR 4.7 billion to recapitalize Fortis Bank Belgium and an additional EUR 4.7 billion to purchase most of the remaining shares from its holding company, Fortis SA/NV
  • Capital Characteristics
    Common shares at market value as of September 26, 2008
  • Bail-in Terms
    No bail-in
  • Outcomes
    Fortis Bank Belgium became a subsidiary of BNP Paribas, BNP Paribas Fortis; the Belgian state held 5.1% of the company, which is valued at about EUR 3.4 billion as of October 2023
  • Notable Features
    Shareholders sought legal recourse following the capital injection and nationalization; the cross-border nature of the initial capital injection fragmented after its announcement failed to stem deposit runs

Key Design Decisions

Purpose1

Part of a Package1

Administration1

Governance1

Communication1

Treatment of Creditors and Equity Holders1

Capital Characteristics1

Source and Size of Funding1

Timing1

Restructuring Plan1

Treatment of Board and Management1

Other Conditions1

Regulatory Relief1

Exit Strategy1

Key Program Documents

Key Program Documents

Key Program Documents

Key Program Documents

Key Program Documents

Key Program Documents

Key Program Documents

Taxonomy

Intervention Categories:

  • Ad Hoc Capital Injections