SNS Reaal Investors receive repayment

This article was last updated on April 11, 2024

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Former SNS Reaal Investors Receive Repayment

The Dutch treasury has returned an estimated 900 million euros to previous SNS Reaal investors. These investors were unfortunately left without their possessions when the bank and its proposed insurer had been nationalised back in 2013. A ruling by the Supreme Court, conducted a year before, decided that these investors had been unjustly denied their rightful possessions. As mentioned by the outgoing Finance Minister Van Weyenberg to the House of Representatives, the government has now redistributed the assets, alongside its interest, to the concerned investors.

Court Struggle Led by Bondholders

The investors in question, essentially the bondholders, moved to court following the abandonment they had faced during the nationalisation process. Much like shareholders, their shares were attributed zero value. A committee dedicated to the task noted that the shares possessed by SNS Reaal, no longer carried any value on the stock market. However, this exempted the bonds which were part of the package offered by the bank-insurer for loans and various other purposes.

State Loses Case to Supreme Court

After a failed attempt by the state at moving the case to the Supreme Court, they had no choice but to distribute compensation of 704 million euros. An additional 200 million euros, included as part of the interest, raised the total allowance to 900 million euros. Investors were asked to register their claims during the summer. According to Van Weyenberg, a majority of the applications were accepted with the exemption of a marginal 1% which were unfortunately rejected.

The Aftermath of SNS Reaal Nationalisation

Following nationalisation, SNS Reaal underwent a division process. Property Finance, the real estate arm, was sold to a Texan investment fund. This branch was recognized for having been heavily contributing to the downfall of the group. The Reaal insurer had been transferred to the Chinese Anbang for 1 euro and is currently owned by Bermuda-based Athora. The banking division remains as a state-owned entity under the name, De Volksbank.