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07.04.2010

Innovative Reverse Floater Bond series with variable interest

Bank Austria now offers new bonds with interest adjusting every quarter to investors who expect the 3-month EURIBOR to rise moderately only in the next two years: The innovative Reverse Floater Bond series 112 / 2010–2012 has a term of two years and a denomination of EUR 1,000. The minimum investment is EUR 3,000. The interest adjustment is made every quarter, based on a fixed value of 2.75 per cent minus the 3-month EURIBOR. The coupon for the first three months was determined at 2.10 per cent p.a.

Investors can benefit from the currently low 3-month EURIBOR interest level with that bond. The lower the 3-month EURIBOR, the higher is the coupon. The longer the 3-month EURIBOR interest is low, the more profitable the investment will be. The more the 3-month EURIBOR increases, the lower the return will be – the basis for the name Reverse Floater. The new bond series is gilt-edged.

Enquiries:  Bank Austria Media Relations
Matthias Raftl, Phone +43 (0) 50505 - 52809
E-Mail: matthias.raftl@unicreditgroup.at

The issue in detail:
Reverse Floater Bond series 112/2010–2012
ISIN:   AT000B048541 
Sale:  as of 1 April 2010, permanent issue 
Volume:   EUR 5m with possibility to increase
Denomination: EUR 1,000 (minimum investment: EUR 3,000)
Term: 2 years, 1 April 2010 until 31 March 2012
Coupon: Interest adjustment every quarter in per cent p.a. based on
 2.75 % minus the 3-month EURIBOR (according to Reuters site EURIBOR01) two business days ahead of the new interest period
1 coupon: 2.10 % p. a
2 to 8 coupon: 2.75 % minus 3-month EURIBOR
Interest payment:   1 July 2010; 1 October 2010; 1 January 2011; 1 April 2011;  1 July 2011;1 October 2011; 1 January 2012; 1 April 2012
Payment: on 2 April 2012 at the nominal sum
Termination:   impossible
Listing:  not planned

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