Bank Austria's new Floater-Obligation 2012–2014 Serie 38 bond offers an attractive interest rate and security of capital
The 2-year floater bond with a short term and a variable interest rate is tailored to the needs of corporate investments but is also suitable for private customers who are interested in short-term investments with an increasing interest rate. The interest rate will be adjusted to the 3-month EURIBOR plus 1 per cent p.a.1) on a quarterly basis over the entire term of the bond and paid every quarter. The Floater-Obligation 2012–2014 Serie 38 bond is denominated in units of EUR 1,000. The minimum investment is EUR 3,000.
With this bond, investors will be able to invest their money at an attractive variable interest rate for a reasonable period of time while benefiting from a possible increase of the 3-month EURIBOR. If investors expect the 3-month EURIBOR to rise in the next two years, the floater bond will be the right investment.
Security for capital and interest
Interest on the floater bond will be paid on a quarterly basis on specified dates. The floater bond will be repaid at the nominal value of 100 per cent only at the end of the term pursuant to the conditions of issue. Bank Austria is liable with its entire assets for the payment of interest and capital.
The bond may be sold at the relevant price before maturity; the market price is influenced by market interest rate levels, liquidity, the debtor’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
Details of the issue:
Floater-Obligation 2012–2014 Serie 38 of UniCredit Bank Austria AG
Offered: from 2 March 2012, continuous issue
Denomination: EUR 1,000 (minimum investment EUR 3,000)
Term: 2 years (2 March 2012 to 1 March 2014)
Coupon1: 3-month EURIBOR + 1 percentage point p. a.
Interest rates are adjusted to the 3-month EURIBOR (according to Reuters site EURIBOR01) on a quarterly basis three business days before the new interest period.
Interest payments: on 2 June, 2 September, 2 December and 2 March of every year,
with the first payment due on 2 June 2012
Redemption: on 2 March 2014 at 100 %
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 by the bank 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 April 2012: an additional 25% Austrian capital gains tax will be deducted from realised capital gains. Any realised capital gains on investments made by individual investors before 1 April 2012 are subject to tax and must be included in these investors’ tax returns. Interest income and capital gains of corporate investors with unlimited tax liability in Austria are subject to 25% Austrian corporation tax (Körperschaftsteuer – KöSt). 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.
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 floater 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 Floater-Obligation 2012-2014 Serie 38 bond of UniCredit Bank Austria. This information does not constitute a prospectus within the meaning of the Austrian Capital Markets Act (Kapitalmarktgesetz – KMG). The only legally binding and relevant information is that which is provided in the published final terms and conditions of the Base Prospectus of 10 February 2012 including any amendments and additions. The final terms and conditions and the Base Prospectus, together with any subsequent additions thereto, have been published and are available at UniCredit Bank Austria AG, Schottengasse 6-8, A-1010 Vienna, and in branches of UniCredit Bank Austria AG.
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