New CMS Floater Bond 2011-2021 Series 15 of Bank Austria

  • Attractive return with a capital guarantee

This 10-year bank bond offers an attractive floating interest rate over the entire term: starting at 3 percent p.a.1) for the first two years the interest rate for the remaining term is adjusted to the 30-year CMS1) and paid out. The CMS Floater Bond 2011-2021 is denominated in thousands of euros; the minimum investment is EUR 3,000.

Over a long-term investment horizon this bond offers inviting earnings opportunities under low risk. If investors believe that long-term interest rates will remain flat or rise in the coming years then the CMS Floater Bond 2011–2021 Series 15 is the ideal investment.

Security for capital and interest
The interest return on the CMS Floater Bond is paid out annually on set dates. According to the issue terms and conditions the nominal value of the CMS Floater Bond is repaid in full only at the end of the term. Bank Austria is liable for the payment of interest and the original capital with all of its current and future assets.

It is possible to sell the bond early at the current market price of the bond. Under certain circumstances this can lead to a loss of capital since the market price is subject to volatility over the term of the bond that is influenced by market interest rates, liquidity, the credit rating of the issuer and the principles of supply and demand.

Enquiries: Bank Austria Press Office Austria
Julia Wegenstein, Tel. +43 (0) 50505 - 52854
E-Mail: julia.wegenstein@unicreditgroup.at

Details about the issue:

CMS Floater Bond 2011–2021 Series 15 of UniCredit Bank Austria AG

ISIN:   AT000B042080
Sale:   from 7 March 2011, tap issue
Volume:   up to EUR 25 million
Denomination:   EUR 1,000 (minimum investment: EUR 3,000)
Term:   10 years
Value date:   6 April 2011
Interest rate:   for the first two years the coupon is 3% p.a.1)
for years 3 to 10 the coupon is adjusted annually to the 30-year CMS  swap rate (according to Reuters page ISDAFIX2)
Interest payout:   on 6 April every year
Repayment:   100% on 6 April 2021
Cancellation:    excluded
Stock exchange listing:   Third Market of Vienna Stock Exchange, planned for 18 April 2011

1) Calculated on the nominal value of 100%. Taxes: 25% capital gains tax (final taxation) deducted from the return for individuals subject to unrestricted taxation in Austria, and for certain businesses subject to restricted taxation. For purchases from 1 October 2011: additional 25% capital gains tax on realised gains. 25% corporate tax from return for businesses subject to unrestricted taxation in Austria. Please note that the tax treatment depends on the personal circumstances of the investor and that the information is based on currently applicable legislation, which may change in the future. Please refer in particular to Budget Accompanying Act 2011.

The information in this publication is not an investment recommendation and is not intended as investment advice. In particular, it is not an offer or invitation to buy or sell this bond. It is intended solely as introductory information and is not a substitute for individual advice provided on the basis of the investor’s individual circumstances and knowledge. Every capital investment involves a certain degree of risk.

You can obtain more information about the CMS Floater Bond 2011–2021 Series 15 from your personal adviser. This information does not constitute a prospectus in accordance with the Capital Market Act (KMG).