The fourty-two pharmaceutical and health care stocks of the STOXX® Europe 600 form the basis of the development. The pharmaceutical and health sector contributes more than 10 percent of the European GDP with increasing tendency. In the Austrian pharmaceutical and health sector alone, nearly 350.000 people are currently in employment.
Christian Noisternig, Bank Austria Area-Head for Private Customers, Corporate Customers and Independent Professions: “With our GarantAnleihe on the HVB Health Care Risk Control 10 Index we offer investors the chance to benefit easily from interesting opportunities in the pharmaceutical and health care industry in these times of low interest rates and the very bright long-term prospects of the sector in the equity market. The integrated capital security limits the term-end risk within the meaning of a security-oriented investment.”
The new GarantAnleihe offers interesting investment opportunities in the medium-term maturity segment. When valuating performance, the development of the HVB Health Care Risk Control 10 Index at the beginning and at the end of the term is set to measure the bond price development. To limit the price fluctuations during the term, the STOXX® Europe 600 Health Care (Price) Index (EUR) is connected to a flexible protection system. This means that in times of quiet market conditions with minor fluctuations, the HVB Health Care Risk Control 10 Index participates in the development of the STOXX® Europe 600 Health Care (Price) Index (EUR). In times of permanent ups and downs, the participation of the HVB Health Care Risk Control 10 Index in the STOXX® Europe 600 Health Care (Price) Index (EUR) will be reduced. In this case, the proportion which is not participating in the development of the STOXX® Europe 600 Health Care (Price) Index (EUR) will be parked non-interest bearing. This approach ensures that potential losses in the index are as limited as possible. When the markets calm down, the HVB Health Care Risk Control 10 Index will participate more strongly again in the development of the STOXX® Europe 600 Health Care (Price) Index (EUR), increasing the earnings opportunities again. The verification and potential adaptions of the participation quotas will happen daily according to previously defined rules. The HVB Health Care Risk Control 10 Index can participate in the price development of the STOXX® Europe 600 Health Care (Price) Index (EUR) from zero up to a maximum of 100 percent. Investors will participate in any positive performance of the index up to a maximum earning of 40 percent (with regard to the nominal value of 100 percent and before deduction of 27.5 percent capital gains tax) per bond.
In the event the performance of the underlying index is negative, the bond has a capital security guarantee of 100 percent at the end of the term. This means that the bond will be paid back at least at the nominal amount of EUR 1000 per bond. The capital is invested for a total of 7 years and 10 months, and the bond can be sold under normal market conditions at its current price.
The underlying instrument is a price index. This means that the dividend payments of the companies included in the index are not integrated in the calculation of the index.
Details on the issue:
GarantAnleihe on the HVB Health Care Risk Control 10 Index 2017-2024 of UniCredit Bank Austria AG
Issuer: UniCredit Bank Austria AG
Underlying instrument: HVB HEALTH CARE RISK CONTROL 10 INDEX
Start of offer: beginning 09 January 2017
Redemption: 17 December 2024
Issue Price: 100 percent + 3 percent front-end load
Denomination: EUR 1,000
Observation dates: initial: 17 February 2017 final: 10 December 2024
Cap: 140 % (before deduction of 27,5 % capital gains tax)
Listing: Third Market of Vienna Stock Exchange
Fees and charges: Custodial fee: 0.235 % p.a. + 20 % VAT on the market value, no less than EUR 3.92 p.a. + 20 % VAT per securities position; but no less than EUR 26.28 + 20 % VAT per securities account.
Selling fees: 0.7 % of the sale value, but no less than EUR 23.50
The information on the Bank Austria GarantAnleihe on the HVB Health Care Risk Control 20 Index 2017-2024 is product information only and does not constitute investment advice or an investment recommendation, a product recommendation, 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 earnings generated by the investment can change suddenly and considerably during the term and therefore cannot be guaranteed. There is a possibility that the investor may not get back the total amount of capital invested.
Enquiries: UniCredit Bank Austria Media Relations
Matthias Raftl, Tel.: +43 (0) 5 05 05-52809;