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26.05.2014

New stepped coupon mortgage bond of Bank Austria with interest rate increases

Bank Austria is offering security-conscious investors a new 8-year mortgage bond for private and corporate customers. The interest rates of the stepped coupon mortgage bond are fixed for the entire term; these are paid on a fixed date each year. The full nominal value of the stepped coupon mortgage bond will be repaid at maturity. If the bond is held to maturity investors receive an average interest rate of 1.453 per cent p.a. 1) based on the nominal value of 100 per cent. The mortgage bond is denominated in units of EUR 100. The minimum investment is EUR 3,000.

If an investor needs his/her capital at an earlier date, he/she can sell the stepped coupon mortgage bond at the current market price. However, investors should note that the stepped coupon mortgage bond is subject to price fluctuations during its term. If an investor sells the bond before maturity, he/she may get back less than the capital originally invested even after a short retention period.

Stepped coupon mortgage bonds are trustee securities. These are supported by collateral in the form of special assets, comprising Bank Austria mortgage loans, cash, cash balances held by the bank and selected bonds. This constitutes a cover fund which is supervised by a trustee. In addition, UniCredit Bank Austria AG is liable with its entire bank assets for the repayment of the stepped coupon mortgage bond.

Enquiries: Bank Austria Media Relations Austria
Matthias Raftl, tel. +43 (0) 50505 52809
e-mail: matthias.raftl@unicreditgroup.at

Details of the issue:

Stufenzins-Pfandbrief Series 133/2014-2022 of UniCredit Bank Austria AG

ISIN: AT000B049499
Offered: from 19 May 2014
Denomination: EUR 100 (minimum investment EUR 3,000)
Term: 8 years, 19 May 2014 to 18 May 2022
Coupon 1) : If the bond is held to maturity,
the average interest rate is 1.453 % p.a.
1st year: 1.000% p.a.
2nd year: 1.125% p.a.
3rd year: 1.250% p.a.
4th year: 1.375% p.a.
5th year: 1.500% p.a.
6th year: 1.625% p.a.
7th year: 1.750% p.a.
8th year: 2.000% p.a.
Interest payments: on 19 May of each year, with the first payment due on 19 May 2015
Redemption: on 19 May 2022 at the nominal value
Callable: Not callable by UniCredit Bank Austria AG or the creditors
Listing: An application is being filed for official trading on the
Vienna Stock Exchange (Wiener Börse)
Type of issue: This security is a continuous issue which is exempted from the prospectus requirement pursuant to Section 3 (1) 3 of the Austrian Capital Markets Act (Kapitalmarktgesetz – KMG)

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) from private assets of individual investors with unlimited tax liability in Austria, and of specific corporate investors domiciled in Austria 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). 25% Austrian capital yields tax will be deducted by the bank from interest income of individual investors from non-EU countries with limited tax liability in Austria beginning on 1 January 2015.
Please note that 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.

Disclaimer:
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 stepped coupon mortgage 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 Stufenzins-Pfandbrief Series 133/2014-2022 mortgage bond of UniCredit Bank Austria AG. This information does not constitute a prospectus within the meaning of the Austrian Capital Markets Act Section 3 (1) 3