15 international equities in the infrastructure sector with a primary focus on the energy supply and building industry are the basis of the performance. Christian Noisternig, Area Head for Private Customers, Corporate Customers and Independent Professions at UniCredit Bank Austria emphasises: “With our new GarantAnleihe on a basket of infrastructure equities we offer investors the chance to invest in the promising infrastructure sector on a diversified basis and to benefit from interesting earnings opportunities in these times of low interest rates. 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 calculating valuating performance, an average value for each share of the basket is set. For this purpose on 13 observation dates at the beginning of the term (first observation period) and 13 observation dates at the end of the term (second observation period) the respective closing rates (reference prices) of the shares contained in the basket at each relevant stock market will be determined. There are two average values for each share: For every share the average of the 13 reference prices at the beginning of the term will be compared to the average of the 13 reference prices at the end of the term – as a result the performance of the basket will be set.
If the performance of the basket of equities is greater than or equal to zero, investors receive the nominal value of EUR 1000 plus the positive performance multiplied by the nominal value per bond, up to a maximum performance of 40 percent (cap or upper limit) on 27 February 2025, the defined repayment date. This means that the maximum redemption amount is EUR 1400 per bond. 1
If the performance of the basket of equities falls below zero, the capital security takes effect and the investor is repaid at the nominal value of EUR 1000 per bond. The Garant-Cap-Anleihe provides a currency hedge, which means that the currency of the equities, which are included in the basket, will be converted into euros on a one-for-one basis (Quanto). Dividend payments during the term will lead to a reduction of equity prices in the basket, which can have a negative effect on the performance of the basket. The bond can be sold under normal market conditions at its current price.
Details on the issue:
HVB Garant Cap Anleihe 2/2025 on a basket of infrastructure equities (Quanto)
Issuer: UniCredit Bank AG, Munich
Applicable law: This Garant-Cap-Anleihe is subject to German law
Underlying instrument: Share basket containing 15 equally weighted shares
Start of offer: Beginning 18 May 2017
Redemption: 27 February 2025
Currency hedge (Quanto): Yes
Participation: 100 %
amount (Cap): 140 % in relation to the nominal value (before deduction of 27.5 % capital gains tax)
Issue Price: 100 percent + 3 percent front-end load of UniCredit Bank Austria AG
Denomination: EUR 1000
Observation dates: 13 during the first year and last year
Listing: Frankfurt (outside market), Stuttgart (outside market)
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: 0.9 % of the sale value, but no less than EUR 86
1 Cost before deduction of 27.5 % capital gains tax
The information on the HVB Garant Cap Anleihe 2/2025 is a 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;