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08.09.2015

Security for capital and attractive interest rates:
two new WohnbauAnleihe bonds of Bank Austria Wohnbaubank

  • Convertible bond carrying 1.8 per cent fixed interest rate
  • "1.25 – 4 per cent Stufenzins-Wandelschuldverschreibung" (stepped-coupon convertible bond)

Bank Austria Wohnbaubank has launched two new WonbauAnleihe bonds for security-oriented investors: the new "1.80 Prozent fix verzinste Wandelschuldverschreibung 2015-2025/3" has a term of 10 years. The interest rate is going to be paid for the first time in September 2016.

The term of the new "1.25 – 4 per cent Stufenzins-Wandelschuldverschreibung 2015 – 2027/4" is 12 years. The interest rate is fixed for the entire term. Interest will be paid annually on a fixed date – for the first time in September 2016. The average return over the entire term of the WohnbauAnleihe bond will be 2.08 per cent annually.

The WohnbauAnleihe bonds are denominated 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. Capital gains on a sale or redemption are taxed at 25 per cent (27.5%, starting with 1.1.2016). 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 convertible bonds can be sold at the prevailing market price. However, it should be noted that the WohnbauAnleihe bonds are subject to price fluctuations during their term. If the investment is not held until the end of the term, the investor may recover less than the nominal value.

Eligible for use by entrepreneurs and independent professionals to benefit from the tax allowance for business profits

On the basis of the changes to the tax allowance for business profits adopted by the Austrian parliament on 24 February 2014 as part of the Austrian Tax Amendments Act 2014 (Abgabenänderungsgesetz 2014), Wohnbauanleihe bonds will be the only securities product qualifying for the investment-based tax allowance for business profits, in addition to tangible business assets. While business investors cannot take advantage of the capital yields tax benefit, the legal changes mean that additional funding will be available for housing construction.

Details of the bond issues:

"1.80 Prozent Wandelschuldverschreibungen 2015–2025/3"

Issuer:

Bank Austria Wohnbaubank AG

First value date:

September 9th 2015, thereafter plus accrued interest

ISIN:

AT000B126040

Term:

10 years, September 9th 2015 – September 8th 2025

Return/coupon:

(based on the nominal value of 100%):

1.8% p.a. (Exempt from Austrian capital yields tax on presentation of a declaration of personal assets.)

 

 

Interest payments:

Due and payable on September 9th of each year, for the first time on September 9th 2016.

Repayment/redemption:

On September 9th 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, that includes 1.2 per cent issue surcharge, was set at 101.2 per cent.

"1.25 bis 4 Prozent Stufenzins-Wandelschuldverschreibungen 2015–2027/4"

Issuer:

Bank Austria Wohnbaubank AG

First value date:

September 9th 2015, thereafter plus accrued interest

ISIN:

AT000B126057

Term:

12 years, September 9th 2015 – September 8th 2027

Interest/coupon:

(based on the nominal value of 100%)

In compliance with the term 2.08% p.a.

1st to 3rd year:                1.25 % p.a.

4th to 6th year:                1.50 % p.a.

7th year:             1.75 % p.a.

8th year:                         2.00 % p.a.

9th year:             2.50 % p.a.

10th year:                       3.00 % p.a.

11th year:                       3.50 % p.a.

12th year:                       4.00 % p.a.

Exempt from Austrian capital yields tax on presentation of a declaration of personal assets.

Interest payments:

Due and payable on September 9th of each year, for the first time on September 9th 2016.

Repayment/redemption:

On September 9th 2027 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, that includes 1.2 per cent issue surcharge, was set at 101.2 per cent.

 The following details apply to both issues:

Conversion right:

Convertible bonds with a nominal value of EUR 1,000 may be converted into 1 bearer participation certificate of the issuer. This corresponds to a nominal conversion ratio of 1 for 10.

Conversion dates:

Annually on January 1st, for the first time on January 1st 2017.

Ordinary Cancellation:

Not possible

Taxation:

-  The interests are for Austrian private investors exempt from the Austrian capitals yields tax.

-  In case of an operative assessment interests underlie the 25 per cent Austrian capital yields tax (27.5%, starting with 1.1.2016)

-  Capital gains on a sale underlie the 25 per cent Austrian capital yields tax (27.5%, starting with 1.1.2016).

-  The purchase of WohnbauAnleihen qualifies for the investment-based tax allowance for business profits.

-  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.

-  For natural persons residing in Non-EU-Countries, who are limited tax-liable, all interests are taxed with 25 percent Austrian capital yields tax (27.5%, starting with 1.1.2016). Private investors are excluded.

 

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 above WohnbauAnleihe bonds 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). This WohnbauAnleihe is issued under a basisprospectus dated August 26th, 2015 which was published pursuant to Section 7 of the KMG on August 27th 2015 in accordance with Section 10 (3) of the KMG. The prospectus is available free of charge and with the current terms 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. An electronic version is available on the Internet at http://wohnbaubank.bankaustria.at

Enquiries:
Bank Austria Pressestelle Österreich
Matthias Raftl, Tel. +43 (0)5 05 05 - 52809;
E-Mail: matthias.raftl@unicreditgroup.at