02.01.2013

Capital security and interest: The new fixed-interest WohnbauAnleihe bond from Bank Austria Wohnbaubank AG

Starting on 2 January 2013, Bank Austria Wohnbaubank AG will issue a new fixed-interest WohnbauAnleihe (residential construction bond) for security-oriented investors. The new “1% – 3,50% Stufenzins-Wandelschuldverschreibung 2013 – 2025/1” has a term of 12 years. The interest is fixed for the entire term and is paid out annually on a fixed date – for the first time in 2014. Over the entire term, the WohnbauAnleihe bond will generate average annual interest of 2.2 per cent. The WohnbauAnleihe bond is denominated in units of EUR 100 with a minimum investment of EUR 1,000. Investors receive 100 per cent of the nominal value of their capital at the end of the term provided that they do not convert the bond.

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

If investors require their money before maturity, “1% – 3,50% Stufenzins-Wandelschuldverschreibung 2013 – 2025/1” can be sold at the prevailing market price. However, it should be noted that the WohnbauAnleihe bond is subject to price fluctuations during the term. If the investment is not held until the end of the term, the investor may recover less than the nominal value.

Details on the bond issue:

1% – 3,50% Stufenzins-Wandelschuldverschreibung 2013 – 2025/1

Issuer: Bank Austria Wohnbaubank AG
First value date: On 4 January 2013, thereafter plus accrued interest
ISIN: AT000B074398
Term: 12 years, 4 January 2012–3 January 2025
Interest/Coupon
(in relation to the nominal value
of 100%): Average of 2.2% p.a. if the investment is held to maturity
Year 1: 1% p.a.
Year 2: 1.25% p.a.
Year 3: 1.50% p.a.
Year 4: 1.625% p.a.
Year 5: 1.75% p.a.
Year 6: 2.00% p.a.
Year 7: 2.25% p.a.
Year 8: 2.50% p.a.
Year 9: 2.75% p.a.
Year 10: 3% p.a.
Year 11: 3.25% p.a.
Year 12: 3.5% p.a.
Interest payments: On 4 January of each year, for the first time in 2014
Repayment/Redemption: On 4 January 2025 at the nominal value, provided that the investor does not convert the bond
Denomination: Nominal value of EUR 100 (minimum investment of EUR 1,000)
Issue price: 101,00
Fees: – Custodial fee of 0.22% p.a. plus 20% VAT on the market value (minimum of EUR 3.66 p.a. per securities position plus 20% VAT).
– Selling fees of 0.7% of the sale value (minimum EUR 22).
Conversion right: Convertible bonds with a nominal value of EUR 400 can be converted into 5 no-par participation certificates of the issuer. This corresponds to a nominal conversion price of EUR 80 per participation certificate.
Conversion dates: Annually on 4 January, for the first time on 4 January 2014
Ordinary cancellation: Not possible
Taxation: – Interest exempt from capital gains tax for Austrian private investors.
– For WohnbauAnleihe bonds purchased after 1 April 2012, capital gains from a sale are subject to 25% capital gains tax.
– For natural persons residing in a member state of the European Union outside of Austria, all interest income from these securities is subject to the 35% EU withholding tax pursuant to Directive 2003/48/EC from 3 June 2003.

Please note that tax treatment depends on the investor’s personal circumstances, and that the described tax advantages may be eliminated in part or in whole by future changes in the relevant laws.

This information regarding the WohnbauAnleihe bond “1 % – 3,5 % Stufenzins-Wandelschuldverschreibung 2013 – 2025/1” is intended solely for informational purposes and does not represent investment advice or an investment or product recommendation. In addition, it is not 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 the term. Redemption of the WohnbauAnleihe bond at the nominal value occurs on the redemption date according to the bond terms and conditions. The bond may be sold before maturity at the prevailing market price. The prevailing market price may be less than the issue price, so it is possible 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 § 7 KMG was published on 28 December 2012 in accordance with § 10 paragraph 3 item 2 KMG. The prospectus is available free of charge at the registered domicile of Bank Austria Wohnbaubank AG, Lasallestraße 1, A-1020 Vienna, and can also be obtained at all branches of UniCredit Bank Austria AG.

Enquiries: Bank Austria Press Office Austria
 Martin Kammerer, Tel. +43 (0) 50505 - 52803
 E-mail: martin.kammerer@unicreditgroup.at

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