07.01.2019

Investing with capital security on maturity:
The new HVB Garant Anleihe based on the “Global Water Strategy Index”

  • The new Garant Anleihe 08/2026 based on the “Global Water Strategy Index” gives you the opportunity to participate 100 per cent in any positive development of the index
  • Capital security thanks to repayment of at least 100 per cent of the nominal value at the end of the term
  • The term is seven years and six months, during which time the bond can be sold under normal market conditions at the current price 

The performance of the HVB Garant Anleihe 08/2026 is based on the “Global Water Strategy Index”. The index reflects the performance of the “KBI Institutional Water Fund”, an investment fund that is primarily invested in shares of companies that are traded at internationally renowned stock exchanges and connected to the water industry (e.g. Water infrastructure, technology and supply).  The other component are cash and money market instruments within the Euro Zone, which is used for the flexible security system. 

If the performance of the index is not as desired, the capital security is retrieved on maturity and the investors receive at least the nominal value of EUR 1,000 per share.

Markus Kosche, Head of Retail Sales Private Customers, Small Business and Independent Professions at UniCredit Bank Austria, emphasises: “The new Garant Anleihe, based on the ‘Global Water Strategy Index’, offers investors the opportunity in the current low-interest environment to invest in a growth market, and to make use of opportunities for returns. The integrated capital security offers 100 percent capital security and limits the risk on maturity within the meaning of a security-oriented financial investment.”

The new Garant Anleihe provides interesting medium-term investment opportunities. The division between the basket and the low-risk component, is based on the flexible security system of the “Global Water Strategy Index”. During quiet periods on the financial markets, the index shall participate in the performance of the basket. In return, the flexible security system shall assign the basket a high weighting and the money market instrument a low weighting. During periods with a continual rise and fall on the markets, the participation of the index in the performance of the basket will be reduced and its participation in the money market instruments will be increased. 

The increased participation of the index in the performance of the money market instruments can ensure that the risk for investors is limited as far as possible. The capital is invested for a total of seven years and six months, during which time the bond can be sold under normal market conditions at the current price. The underlying “Global Water Strategy Index” is calculated in euros. The index sponsor and calculation agent is UniCredit Bank AG (formerly Bayerische Hypo- und Vereinsbank AG).


The issue in detail:
HVB Garant Anleihe 08/2026 based on the “Global Water Strategy Index” 

ISIN: DE000HVB32K6
Issuer: UniCredit Bank AG
Underlying security: Global Water Strategy Index (EUR)
Proposal: from 07/01/2019 to 15/02/2018 (2 p.m.), subject to early termination
Redemption price: 20/08/2026
Issue price:  100%
Agio: 4%
Denomination: EUR 1,000
Valuation dates:  initial: 18/02/2019, final: 13/08/2026
Participation factor: 100% 
Exercise price: 100%
Capital security at end of term: 100%
Stock market listing: Expected to be from 22/02/2019, Frankfurt (Open Market), Stuttgart (Open Market)
Fees and charges: Custodial fee: Annually 0.235% + 20% VAT on the market value, at least EUR 3.92 annually + 20% VAT per securities position; but at least EUR 26.28 + 20% VAT per securities account
Selling fees: 0.70% of the market value (at least EUR 63) plus external costs in full

 

Disclaimer:
This information regarding the HVB Garant Anleihe 08/2026 based on the Global Water Strategy Index is provided solely for advertising purposes and does not constitute investment advice, an investment recommendation, a product recommendation, or an offer or solicitation to buy or sell this bond, or a solicitation to make an offer. It is intended solely as introductory information and is not a substitute for advice provided on the basis of the investor’s individual circumstances and knowledge. Every capital investment involves a certain degree of risk. The value of the investment and the amount of investment income may be subject to sudden and significant fluctuations during the term of investment, and for this reason they cannot be guaranteed. It is possible that the investor may not recover the entire amount of the initial investment.


Enquiries:    

UniCredit Bank Austria Press Office
Volker Moser, Tel.: +43 (0)5 05 05-52854;
Email: volker.moser@unicreditgroup.at