Dutch financial services group ING has raised $1.27bn through the public sale of shares in its US insurance arm, now named Voya.

The company placed 65.2 million shares in the company at $19.50, which is below earlier expectations. ING said last month it hoped the flotation would raise up to $1.5bn

ING will retain 75% of the shares of the company and it will remain fully consolidated in the Dutch firm’s books.

ING said last year it would float its US insurance activities. The sale is one of the measures ING needs to take to meet Brussel’s conditions for receiving state support.

The bank plans to use the proceeds to reduce its debt.