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 |
| 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 |
