New 1.90 per cent Fixzins-Obligation 2012–2017 Serie 56 bond of Bank Austria offers SMEs tax benefits with security for capital
- This Fixzins-Obligation (fixed-interest bond) is tailored to meet the investment needs of small and medium-sized enterprises (SMEs) and of independent professionals, enabling investors to accurately calculate income based on an interest rate which is fixed for the entire term.
By buying this bank bond, investors can take advantage of the investment-related tax allowance for business profits to deduct 13 per cent of their profits, but a maximum EUR 100,000 (income from business operations) for the assessment year 2012. Based on the Austrian Stability Act 2012, the investment-related tax allowance for business profits will be graduated, depending on the amount of the profit. This will initially apply only to the assessment years 2013 to 2016.
This bank bond with a 4.5 year term offers a market-based fixed interest rate for the period from 6 September 2012 to 6 March 2017. The interest rate of 1.90 per cent p.a.1) is fixed for the entire term and the interest is paid annually, for the first time on 6 September 2013, with a final short coupon covering the period 6 September 2016 to 5 March 2017 inclusive. The Fixzins-Obligation 2012–2017 Serie 56 bond is denominated in units of EUR 1,000. The minimum investment is EUR 3,000.
Security for capital and interest
Interest on the fixed-interest bond is paid annually on specified dates. Pursuant to the terms and conditions of issue, the bond is repaid at 100 per cent of the nominal value at the end of the term. Bank Austria is liable with its entire assets for the payment of interest and capital.
Access to the capital
Investors who need their capital before maturity can sell the fixed-interest bond at the prevailing market price. It should be noted that the price of the bond varies during the term. If the investment is not held to maturity, there is a risk that investors may not get back the full amount invested.
Investors wishing to take advantage of the investment-related tax allowance must hold the 1.90 per cent Fixzins-Obligation 2012–2017 Serie 56 bond as part of their fixed assets for at least four years and it must have a remaining period to maturity of four years. Securities sold before the expiry of the four-year term will be subject to subsequent taxation unless physical assets which benefit from tax concessions are purchased in lieu of the securities sold (the purchase of other securities in lieu of the securities sold is only possible if the fixed-interest bond is not held to maturity).
Enquiries: Bank Austria Media Relations Austria
Matthias Raftl, tel. +43 (0) 50505 52809
Details of the issue:
1.90 per cent Fixzins-Obligation 2012–2017 Serie 56 bond of UniCredit Bank Austria AG
from 6 September 2012 Volume:
up to EUR 150 million Denomination:
EUR 1,000 (minimum investment: EUR 3,000) Term:
4.5 years Coupon:
Fixed interest rate of 1.90 % p.a. 1) Interest payments:
Payable annually from 6 September 2012 until 6 March 2017 inclusive; first payment is due on 6 September 2013; final short coupon from 6 September 2016 until 5 March 2017; payable on 6 March 2017 Redemption:
on 6 March 2017 at 100 % Callable:
An application has been submitted for listing on the Third Market of the Vienna Stock Exchange Type of issue:
This security is a continuous issue under the base prospectus containing the programme of offerings of UniCredit Bank Austria AG for the issuance of non-dividend securities pursuant to Section 1 (1) 4b of the Austrian Capital Markets Act (Kapitalmarktgesetz – KMG). Selling before maturity:
at the prevailing market price Section 14 eligibility:
Fulfils the conditions of Section 14 (7) 4 of the Austrian Income Tax Act (Einkommensteuergesetz – EStG) (suitable for pension provisions and for taking advantage of the investment-related tax allowance for business profits)
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 of specific corporate investors with limited tax liability in Austria. An additional 25% Austrian capital gains tax will be deducted from realised capital gains. 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 ErfolgsAnleihe 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 Fixzins-Obligation 2012–2017 Serie 56 bond of UniCredit Bank Austria AG. 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 26 June 2012 including any amendments and additions. The final terms and conditions and the Base Prospectus have been published and are available at erfolgsanleihe.bankaustria.at, from UniCredit Bank Austria AG, Schottengasse 6-8, A-1010 Vienna, and in branches of UniCredit Bank Austria AG.
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