24You

The new online banking of Bank Austria.

BusinessNet

The online banking for companies.

olbImgAlt To the MegaCard GoGreen-youth account
MegaCard GoGreen-youth account. The free MegaCard GoGreen-youth account for everyone from 10 to 20 years, and receive a welcome gift. To the MegaCard GoGreen-youth account
28.04.2014

Bank Austria Wohnbaubank AG celebrates anniversary:
Bank Austria Wohnbaubank makes significant economic contribution to affordable housing for 20 years.

  • Bank Austria Wohnbaubank has provided low-cost refinancing from residential construction bonds to fund subsidised housing construction since 1994
  • EUR 5 billion disbursed in this way over the last 20 years, helping to co-finance the construction of roughly 63,000 and the renovation of approximately 37,000 residential units with an investment volume of more than EUR 7.3 billion
  • Sales of Bank Austria's residential construction bonds double in 2013 compared to 2012, totalling EUR 112 million in new issues
  • Targeted issue volume over the coming years set at an average EUR 200 million per year, with a view to using this new refinance to replace funds from residential construction bonds maturing in the next five years

Founded in 1994, Bank Austria Wohnbaubank is a wholly-owned subsidiary of Bank Austria and one of the leading specialist banks for residential construction financing; by issuing bonds it provides low-cost refinancing for subsidised housing construction. The funds are channelled principally into financing subsidised new buildings in high-volume as well as private housing construction, acquiring homes, and into large urban as well as limited-profit renovation projects. "This business focus means we make an economically significant contribution to "high-quality yet affordable housing", and at the same time provide a boost to the domestic construction industry that should not be underestimated", stressed Ulrike Sperl, who alongside Ingrid Lebersorger is a Managing Board member at Bank Austria Wohnbaubank AG.

Residential construction bonds: tax benefits appeal
To make residential construction bonds with their minimum statutory term of 10 years appealing for investors, legislators attached some tax benefits.

"Interest of up to 4 percent is exempt from capital gains tax. This tax benefit means residential construction bonds offer higher net yields than comparable bonds", said Ingrid Lebersorger, emphasising the advantages, before adding: "Thanks to the tax benefits and the capital security – repayment of the entire nominal amount at the end of the term – residential construction bonds are ideal as pension products."

Tax allowance will stimulate market from mid-2014
The Managing Board members at Bank Austria Wohnbaubank believe the market will be stimulated from mid-2014 by the change in relation to private individuals claiming the tax allowance on business income for residential construction bonds. According to the Managing Board at Bank Austria Wohnbaubank, this will "create an additional volume of roughly 50 to 55 million euros."

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