Security for capital and interest: the new fixed-rate Wohnbauanleihe bond of Bank Austria Wohnbaubank AG

Following the successful placement of a fixed-rate Wohnbauanleihe bond in the past few weeks, Bank Austria Wohnbaubank AG has launched a new fixed-rate Wohnbauanleihe bond for security-oriented investors starting from 20 September 2013. The term of the new “2%–4% Stufenzins-Wandelschuldverschreibung 2013–2025/5“ stepped-coupon convertible bond is twelve years. The interest rate is fixed for the entire term. Interest will be paid annually on a fixed date – for the first time in 2014. The average return over the entire term of the WohnbauAnleihe bond will be 2.83 per cent annually. The WohnbauAnleihe bond is denominated in units of EUR 100 with a minimum investment of EUR 1,000. Capital will be repaid at 100 per cent of the nominal value at the end of the term, provided that a bondholder has not converted the bonds held by him/her.

An investment in WohnbauAnleihe bonds offers tax benefits.
For Austrian private investors, interest earned on WohnbauAnleihe bonds is not subject to Austrian capital yields tax (Kapitalertragsteuer – KESt) up to an amount of 4 per cent annually. These favourable conditions result in a higher net return compared with fully taxable bonds. For WohnbauAnleihe bonds purchased on or after 1 April 2012, capital gains on a sale are taxed at 25 per cent. In addition, WohnbauAnleihe bonds are covered by final taxation; in other words, interest income from them is not subject to income tax.

If investors require their money before maturity, the “2%–4% Stufenzins-Wandelschuld-verschreibung 2013–2025/5” can be sold at the prevailing market price. However, it should be noted that the WohnbauAnleihe bond is subject to price fluctuations during its term. If the investment is not held until the end of the term, the investor may recover less than the nominal value.


Details of the bond issue:

2–4% Stufenzins-Wandelschuldverschreibungen 2013–2025/5
Issuer: Bank Austria Wohnbaubank AG
First value date: on 23 September 2013, thereafter plus accrued interest
ISIN: AT000B074430
Term: 12 years, 23 September 2013 – 22 September 2025
(based on the nominal value of 100%): If held to maturity, the average return on the bond will be
2.83% p.a.
Interest rates:
1st and 2nd years: 2% p.a.
3rd and 4th years: 2.25% p.a.
5th and 6th years: 2.50% p.a.
7th and 8th years: 2.75% p.a.
9th and 10th years: 3.50% p.a.
11th and 12th years: 4% p.a.
Exempt from Austrian capital yields tax on presentation of a declaration of personal assets.
Interest payments: Due and payable on 23 September of each year, for the first time on 23 September 2014.
Repayment/redemption: On 23 September 2025 at the nominal value, provided that the investor has not converted the bonds held by him/her.
Denomination: Nominal value of EUR 100 (minimum investment: EUR 1,000)
Issue price: Your relationship manager will be able to provide you with information on the current issue price. The initial issue price has been set at 100.50.
Fees and charges: – Custody fee of 0.235% p.a. plus 20% VAT on the market value (minimum custody fee per securities position:
EUR 3.92 p.a. plus 20% VAT).
– Selling fee of 0.7 % of the sale value (minimum: EUR 23.50).
Conversion right: Convertible bonds with a nominal value of EUR 400 may be converted into 5 no-par value participation certificates of the issuer. This corresponds to a nominal conversion price of
EUR 80 per participation certificate.
Conversion dates: Annually on 23 September, for the first time on 23 September 2014.
Ordinary cancellation: Not possible.
Taxation: – Interest exempt from Austrian capital yields tax for Austrian private investors.
– For WohnbauAnleihe bonds purchased on or after 1 April 2012, capital gains on a sale are taxed at 25%.
– For natural persons residing in a member state of the European Union other than Austria, all interest income from these securities is subject to the 35% EU withholding tax pursuant to Directive 2003/48 EC of 3 June 2003.

Please note that the tax treatment depends on the investor’s personal circumstances, and that the tax advantages described may cease to apply in whole or in part as a result of future changes in the relevant laws.

This information regarding the stepped-coupon WohnbauAnleihe bond “2%–4% Stufenzins-Wandelschuldverschreibung 2013–2025/5” is intended solely for informational purposes and does not represent investment advice or an investment or product recommendation. Neither is it an offer or invitation to buy or sell the bond described herein, or a solicitation to make such an offer. 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 risks, and the value of the bond can fluctuate during its term. The WohnbauAnleihe bond will be redeemed at the nominal value on the redemption date according to the terms and conditions of the bond. The bond may be sold before maturity at the prevailing market price. The prevailing market price may be lower than the issue price, which means that the investor may fail to recover the full invested amount.

This press release is not a prospectus as defined by the Austrian Capital Market Act (Kapitalmarktgesetz – KMG). A prospectus pursuant to Section 7 of the KMG was published on 19 September 2013 in accordance with Section 10 (3) 2 of the KMG. The prospectus is available free of charge at the registered office of Bank Austria Wohnbaubank AG, Lassallestrasse 1, A-1020 Vienna, and can also be obtained at any branch of UniCredit Bank Austria AG.


Enquiries: Bank Austria Media Relations Austria
Matthias Raftl, tel. +43 (0)5 05 05 52809;
e-mail: matthias.raftl@unicreditgroup.at