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18.11.2010

New 2.65 % Fixzins-Obligation 2010-2015/5 bond of Bank Austria offers SMEs an attractive fixed interest rate with security for capital

This bank bond with a 4.5-year term offers an attractive fixed interest rate for the period from 19 November 2010 to 18 May 2015. It is suitable for taking advantage of the investment-related tax allowance for business profits. The interest rate of 2.65 per cent p.a. is fixed for the entire term and it is payable annually, for the first time on 19 November 2011, with a final short coupon covering the period from 19 November 2014 to 18 May 2015 inclusive. The Fixzins-Obligation 2010-2015/5 bond is denominated in units of 1,000 euros. The minimum investment is 3,000 euros.

This Fixzins-Obligation bond is tailored to meet the investment needs of small and medium-sized businesses (SMEs), enabling investors to accurately calculate income based on an interest rate which is fixed for the entire term. Moreover, by buying this bank bond, investors can take advantage of the investment-related tax allowance for business profits so that 13 per cent of taxable profit (from one of the various types of business income) will be tax-free.

Security for capital and interest
Interest on the Fixzins-Obligation bond issue is paid annually on specified dates. Pursuant to the terms and conditions, the bond is repaid at 100 per cent of the nominal value at the end of the term. Bank Austria is liable with its entire assets for the payment of interest and capital.

Investors who need their capital before maturity can sell the Fixzins-Obligation bond at the prevailing market price. It should be noted that the price of the Fixzins-Obligation bond varies during the term. If the investment is not held to maturity, there is a risk that investors may not get back the full amount invested.

 

Enquiries: Bank Austria Media Relations Austria
Matthias Raftl, tel. +43 (0) 50505 52809
e-mail: matthias.raftl@unicreditgroup.at


Details of the issue:

2.65 % Fixzins-Obligation 2010-2015/5 bond of UniCredit Bank Austria AG

 ISIN:   AT000B041983
Offered:   from 19 November 2010, continuous issue
Volume:   EUR 30 million   
Denomination:   EUR 1,000 (minimum investment: EUR 3,000)
Term:   4.5 years
Coupon:   Fixed interest rate of 2.65 % p.a. 1)
Interest payments:   Interest will be paid annually from 19 November 2010 until 18 November 2014 inclusive; first payment is due on 19 November 2011; final short coupon from 19 November 2014 until 18 May 2015 inclusive; payable on 19 May 2015
Redemption:   on 19 May 2015 at 100 %
Callable:   No
Listing:   It is envisaged that the bond will be listed on the Third Market of the Vienna Stock Exchange
Section 14 capability:   Meets the requirements pursuant to Section 14 (7) 4 of the Austrian Income Tax Act (Einkommensteuergesetz – EStG) (suitable for                        pension provisions and for using the investment-related tax allowance for business profits pursuant to the 2009 tax reform)
Type of issue:   This security is a continuous issue and is exempted from the prospectus requirement pursuant to Section 3 (1) 3 of the Austrian Capital Markets Act (Kapitalmarktgesetz – KMG).

 
                      
1) Based on the nominal value of 100 %. 25 % capital yields tax (Kapitalertragsteuer – KESt) will be deducted from the receipts (final taxation) of natural persons with unlimited tax liability in Austria, and 25 % corporation tax (Körperschaftsteuer – KÖSt) will be deducted from the receipts of corporate investors with unlimited tax liability in Austria. Please note that the tax treatment depends on an investor’s personal circumstances and that information is provided on the basis of the current legal situation, which may be subject to change.


Disclaimer:

This information does not constitute investment advice or a recommendation. Nor does it in particular constitute an offer or solicitation to buy or sell this bond. It is provided only as initial information and cannot replace advice tailored to the investor’s knowledge and specific circumstances. Every investment of capital involves a degree of risk.
 
Your relationship manager will be pleased to provide you with further details of the 2.65 % Fixzins-Obligation 2010-2015/5 bond. This information does not constitute a prospectus within the meaning of the Austrian Capital Markets Act (Kapitalmarktgesetz – KMG).