New fixed-interest home building bond from Bank Austria Wohnbaubank AG
Bank Austria Wohnbaubank AG has issued a new fixed-interest home building bond. 3.50 % WohnbauAnleihe 2010 – 2022/1 has a term of twelve years. The denomination of this continuous issue is EUR100, with a recommended minimum investment of EUR 1,000.
Investment in home building bonds is eligible for tax benefits. For private investors, interest from home building bonds is exempt from capital gains tax up to an annual amount of 4 per cent. There is no limit to the amount that can be purchased and there is no supplementary taxation upon sale. These benefits result in higher net earnings in comparison to bonds that are subject to full taxation.
Home building bonds are taxed at source; this means they are exempt from income tax. The expenses for the purchase of newly issued bonds can be claimed as special expenses by private investors within legal limits. This requires that the bonds be held for ten years. The effective yields are therefore dependent on each investor’s income, among other conditions.
Enquiries: Bank Austria Press Office Austria
Thore Dohse, Tel. +43 (0)5 05 05 – 52809
The bond in detail:
3.50 % WohnbauAnleihe 2010 – 2022/1
Purchase: from January 20, 2010
Issue volume: up to EUR50m with the option of issuing additional tranches
Term: 12 years
Coupon: 3.50 % p. a. (capital gains tax exempt)
payments: on January 21 of each year, for the first time on January 21, 2011
First issue price: 100.50 %
Redemption: on January 21, 2022 at the nominal value
Early redemption: not possible
Denomination: EUR100 (minimum investment EUR1,000)
A brochure was published in accordance with § 7 KMG on January 19, 2010 and is available free of charge at the registered office of Bank Austria Wohnbaubank AG, Lassallestraße 1, A-1020 Vienna.