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05.04.2011

Bank Austria's new Inflations-GarantieAnleihe 2011–2016 Serie 16 offers attractive earnings potential in the case of rising prices

With its new Inflations-GarantieAnleihe 2011–2016 Serie 16, Bank Austria is offering a new GarantieAnleihe for investors who expect prices to increase over the medium term and who want to take advantage of this anticipated development to achieve attractive earnings. This GarantieAnleihe has a five-year term and offers capital security when it is held to maturity. The coupon will be paid out annually on the coupon dates, with fixed interest in the amount of 3 per cent p.a.1 paid out for the first two years. In the third to fifth year, the coupon will be determined based on the positive percentile change in the value of the European Harmonised Index of Consumer Prices (HICP) ex Tobacco. This change will be used to calculate the inflation rate, which investors will participate in at a rate of 133 per cent, paid out as an annual coupon (corresponding to 100 per cent of the inflation rate after the deduction of Austrian capital yields tax).1 The minimum investment is EUR 4,000, and the bond is denominated in units of EUR 1,000.

Security for your capital and interest
The interest earned by the GarantieAnleihe is paid out annually on a fixed date. Investors receive 100 per cent of the nominal value of their capital at the end of the term.

If investors require their money before maturity, Inflations-GarantieAnleihe 2011–2016 Serie 16 can be sold at the prevailing market price. However, it should be noted that the GarantieAnleihe is subject to price fluctuations during the term. If the investment is not held until the end of the term, the investor may fail to recover the full invested amount.
Bank Austria guarantees the payment of the interest and capital with all of its assets.

 chart (PDF; 87 KB)

Enquiries: Bank Austria Press Office Austria
 Matthias Raftl, Tel. +43 (0) 50505 - 52809
  E-mail: matthias.raftl@unicreditgroup.at

Details on the bond issue:

Inflations-GarantieAnleihe 2011–2016 Serie 16 from UniCredit Bank Austria AG

ISIN: AT000B042114
Sale: From 4 April 2011 as a continuous issue
Denomination: EUR 1,000 (minimum investment of EUR 4,000)
Term:  5 years (11.5.2011 to 11.5.2016)
Coupon: Year 1: 3% p.a.1 fixed interest, coupon due on 11 May 2012.
 Year 2: 3% p.a.1 fixed interest, coupon due on 11 May 2013.
Year 3: ((underlying value as of February 2014/underlying value as of February 2013) – 1) x 133%, minimum of 0%
Year 4: ((underlying value as of February 2015/underlying value as of February 2014) – 1) x 133%, minimum of 0%
Year 5: ((underlying value as of February 2016/underlying value as of February 2015) – 1) x 133%, minimum of 0%
Interest payout: On 11 May of each year for the preceding interest period
Redemption:  On 11 May 2016 at 100%
Fees: Custodial fees: 0.22% p.a. plus 20% VAT (minimum fee per securities position EUR 3.66 p.a. plus 20% VAT); selling fees 0.7% (minimum EUR 22)
Call rights:  Not possible
Stock exchange listing: Listing on the third market of the Vienna Stock Exchange planned

1) In relation to the nominal value of 100%. Taxes: 25% Austrian capital yields tax (final taxation) deducted from earnings for private investors subject to unlimited tax liability in Austria and for certain businesses subject to limited tax liability in Austria. When purchased on or after 1 October 2011: 25% Austrian capital yields tax on realised value increases additionally. 25% Austrian corporate income tax deducted from earnings for businesses subject to unlimited tax liability in Austria. Please note that taxation is subject to the investor's personal circumstances and that this information is provided on the basis of current legislation, which could change in the future. Please refer in particular to the 2011 Austrian Finance Act.

Disclaimer:
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 the GarantieAnleihe described herein. It is intended solely as introductory information and is not a substitute for advice provided on the basis of the investor's individual circumstances and knowledge. Every capital investment involves a certain degree of risk.

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