New 5-year stepped-coupon bond with an average interest rate of 3.7% interest p.a.1 for the entire term and security for capital at the end of the term

The new Stufenzins-Anleihe 2011–2016 Serie 19  bond of Bank Austria is ideal for investors looking for an investment with a reasonable term and guaranteed interest rate increases. The stepped-coupon bond has a term of 5 years and offers security for capital if held to maturity. Interest is paid annually at the coupon dates, and the annual increase in the fixed interest rate is guaranteed as follows: in the first year, 2.625% p.a.1 , in the second year 3.125% p.a.1, in the third year 3.625% p.a.1, in the fourth year 4.125% p.a.1, and in the fifth year 5% p.a.1. This corresponds to an average interest rate of 3.7% p.a.1 if the investment is held to maturity. The minimum investment is EUR 3,000, the bond is denominated in units of EUR 1,000.

Security for capital and interest
Interest payable on the stepped-coupon bond is paid annually on a specified date. The interest rate is guaranteed to rise every year, from 2.625% p.a1 in the first year to 5% p.a. 1 in the fifth year. This enables investors to benefit from guaranteed interest rate increases.
Capital is repaid at 100 per cent of the nominal value at the end of the term.

The stepped-coupon bond is subject to price fluctuations during its term. The capital is repaid at the nominal value on the repayment date in accordance with the terms and conditions of issue. An investor may sell a bond at the relevant market price before maturity; the market price is influenced by market interest rate levels, liquidity, the borrower’s rating, and by the laws of supply and demand. If the investment is not held to maturity there is a risk that investors may not get back the full amount invested, especially if the investment is only held for a short time.

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

Details of the issue:

Stufenzins-Anleihe 2011–2016 Serie 19 of UniCredit Bank Austria AG

ISIN: AT000B042155
Offered: from 16 May 2011, continuous issue
Denomination: EUR 1,000 (minimum investment EUR 3,000)
Term:  5 years (16 May 2011 to 15 May 2016)
Coupon1: If held to maturity  
   average interest rate of 3.7% p. a.
   First year:   2.625 % p. a.,  coupon due on 16 May 2012
   Second year:   3.125 % p. a.,  coupon due on 16 May 2013
   Third year:    3.625 % p. a.,  coupon due on 16 May 2014
   Fourth year:    4.125 % p. a.,  coupon due on 16 May 2015
   Fifth year:    5 % p. a.,     coupon due on 16 May 2016
Interest payments: on 16 May of each year in arrears
Redemption:  on 16 May 2016 at 100 %
Callable:  No
Listing: It is envisaged that the bond will be listed on the Third Market of the Vienna Stock Exchange (Wiener Börse)

1) Based on the nominal value of 100%. Taxation: 25% Austrian capital yields tax (Kapitalertragsteuer – KESt) will be deducted from interest income (final taxation) on private 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 yields tax will be deducted from realised capital gains. 25% 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 Austrian Budget Supplementary Act 2011 ("Budgetbegleitgesetz 2011").

This information does not constitute investment advice or a recommendation. Nor does it in particular constitute an offer or solicitation to buy or sell this stepped-coupon bond. 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.
Your relationship manager will be pleased to provide you with further details of the Stufenzins-Anleihe 2011-2016 Serie 19 bond of UniCredit Bank Austria. This information does not constitute a prospectus within the meaning of the Austrian Capital Markets Act (Kapitalmarktgesetz – KMG).

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