New stepped coupon mortgage bond of Bank Austria with annual interest rate increases

Bank Austria is offering security-conscious investors a new 6-year mortgage bond for private and corporate customers as from 4 July 2011. The interest rates of the stepped coupon mortgage bond are fixed for the entire term; these are paid on a specified date each year. The full nominal value of the stepped coupon mortgage bond will be paid at maturity. If the bond is held to maturity investors receive an average interest rate of 3.06 per cent p.a. 1) 

If an investor needs his/her capital at an earlier date, he/she can sell the stepped coupon mortgage bond at the current market price. However, investors should note that the stepped coupon mortgage bond is subject to price fluctuations during its term. If an investor requires the capital before maturity, it is possible that he/she may not get back the entire amount invested.

Stepped coupon mortgage bonds are trustee securities which are secured by Bank Austria mortgage loans. UniCredit Bank Austria AG is moreover liable with its entire assets.

Enquiries: Bank Austria Media Relations Austria
Matthias Raftl, tel. +43 (0) 50505 52809
e-mail: matthias.raftl@unicreditgroup.at

Details of the issue:

Stufenzins-Pfandbrief Series 120/2011-2017 of UniCredit Bank Austria AG

ISIN:  AT000B049044
Offered: from 4 July 2011
Denomination:  EUR 100 (minimum investment EUR 3,000)
Term:  6 years, 4 July 2011 to 3 July 2017
Coupon 1) : If the bond is held to maturity,
the average interest rate is 3.06 % p.a.
1st year:  2.25 % p.a.
 2nd year:  2.50 % p.a.
3rd year:  2.75 % p.a.
4th year:  3.125 % p.a.
5th year:  3.50 % p.a.
6th year:  4.25 % p.a.
Interest payments:  on 4 July of each year, with the first payment due on 4 July 2012
Redemption:  on 4 July 2017 at the nominal value
Callable:  Not callable by UniCredit Bank Austria AG or the creditors
Listing: An application is being filed for official trading on the
Vienna Stock Exchange (Wiener Börse)
Type of issue: This security is a continuous issue which is exempted from the prospectus requirement pursuant to Section 3 (1) 3 of the Austrian Capital Markets Act (Kapitalmarktgesetz – KMG)

1) Based on the nominal value of 100%. Taxation: 25% Austrian capital yields tax (Kapitalertragsteuer – KESt) will be deducted from interest income (final taxation) of assets of individual investors with unlimited tax liability in Austria, and from interest income of specific corporate investors with limited tax liability in Austria. For investments made from 1 October 2011: an additional 25% Austrian capital gains tax will be deducted from realised capital gains. 25% Austrian corporation tax (Körperschaftsteuer – KÖSt) will be deducted from interest income of corporate investors with unlimited tax liability in Austria. It should be noted that the tax treatment depends on an investor’s personal circumstances and that information is provided on the basis of the current legal situation, which may be subject to change. We in particular draw attention to the government bill on the Austrian Tax Amendment Act 2011 (Abgabenänderungsgesetz 2011), under which the implementation of the new Austrian capital gains tax is to be postponed from 1 October 2011 to 1 April 2012. It remains to be seen when the measures will finally be enacted.


This information does not constitute investment advice or a recommendation. Nor does it in particular constitute an offer or solicitation to buy or sell stepped coupon mortgage bonds. It is provided only as initial information and cannot replace advice tailored to the investor’s knowledge and specific circumstances. Every investment of capital involves a degree of risk. The value of the stepped coupon mortgage bond may fluctuate during the term of the bond. In accordance with the terms and conditions, redemption of the stepped coupon mortgage bond is at the nominal value (= 100 %) on the redemption date. Investors may sell their investment in the stepped coupon mortgage bond prior to maturity at the price prevailing at the time of sale. The price may be below the issue price, so that the investor may not get back the entire amount invested.


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