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19.11.2015

Focus on earnings opportunities of European equities market with capital security:
The new 1% Fixzins Europa GarantieAnleihe of Bank Austria

  • The new bond offers 1 percent fixed interest p.a., plus the earnings opportunities inherent in the shares of 20 European companies and capital security at the end of the term

This 1% Fixzins Europa GarantieAnleihe draws on the development of an equity basket comprising the shares of 20 well-known European companies with a strong market position in the fields of electronics, pharmaceuticals, automobiles, oil, logistics, telecommunication and insurance. Growth in Europe is currently being bolstered principally by good development of private consumption. The low inflation rate and the low price of oil boost the purchasing power of consumers. The low oil price brings some cost relief for companies. Generally speaking the low commodity prices are a reason why growth forecasts for Europe are currently more robust than in many emerging markets for example, which are often producers of such commodities.

Helmut Bernkopf, Bank Austria Management Board member with responsibility for retail and corporate customers, emphasised that "With this new 1% Fixzins Europa GarantieAnleihe we offer investors the chance to benefit easily from the opportunities on the equity market in these times of low interest rates. The new GarantieAnleihe also offers 1% fixed interest p.a. and capital security at maturity, which significantly limits the risk when holding the investment to the end of the whole term."

The new Garantie-Anleihe offers attractive investment opportunities over a mid-term horizon because investors benefit from the selected equities at a ratio of 100 per cent up to a maximum payout (maximum amount) of 148 per cent. Given the current interest rates there is also an rewarding return of 1 per cent p.a. (paid annually). Should the equity basket produce a negative development at the end of the 7¼-year term (20 equities, equally weighted), a repayment of at least 100 percent is assured.

The value of each equity on 13 observation dates in the first and last year is recorded and an average derived to measure the performance of the equity basket. This averaging method mitigates the risk of sharp price fluctuations at the start and the end of the term significantly. When the basket matures, investors benefit from the entire positive average performance of the equity basket. The maximum repayment amount is 148 percent of the nominal value. In the event the average performance of the underlying equity basket is negative, the bond has a capital security guarantee of 100 percent at the end of the term. This means that the bond will be paid back at least at the nominal amount of EUR 1,000 per bond.

The capital is invested for a total of 7¼ years, and the bond can be sold under normal market conditions at its current price.

European companies included in the basket of equities:

ABB LTD  Electronics  Switzerland 
BAYER AG Medicine/Pharma  Germany 
DANONE Consumer goods France
DEUTSCHE POST AG Logistics Germany
DEUTSCHE TELEKOM AG Telecommunication Germany
ENGIE Utility  France
TOTAL SA  Oil France
FRESENIUS SE & CO Medicine/Pharma Germany
GEBERIT AG Sanitary systems Switzerland
IBERDROLA SA Utility Spain
REPSOL SA Utility Spain
RENAULT SA Automobiles France
ROCHE HOLDING AG Medicine/Pharma Switzerland
SWISSCOM AG Telecommunication Switzerland
SWISS RE AG Insurance Switzerland
TELEFONICA SA Telecommunication Spain
UBS GROUP AG Finances Switzerland
UNILEVER NV Consumer goods Netherlands
VIVENDI Media France
ZURICH INSURANCE GROUP AG Insurance Switzerland

Details on the issue:

1% Fixzins Europa GarantieAnleihe 2015–2023 Series 106 from UniCredit Bank Austria AG

ISIN:  AT000B043864
Issuer:  UniCredit Bank Austria AG 
Underlying instrument:  Equity basket comprising 20 equally weighted stocks
Subscription period: 19 November 2015 to 18 December 2015 (2:00 pm) - unless closed earlier
Repayment: 22 March 2023
Issue price: 100% + 3% front-end load
Denomination: EUR 1,000
Observation dates: 13 in first year, 13 in last year
Listing: Third Market of Vienna Stock Exchange
Fees and charges: Custodial fee: 0.235% p.a. plus 20% VAT on the market value, no less than EUR 3.92 p.a. plus 20% VAT per securities position; but no less than EUR 26.28 + 20% VAT per securities account.
Selling fees: 0.7% of the sale value, but no less than EUR 23.50

Disclaimer:
The information on the 1% Fixzins Europa GarantieAnleihe 2015–2023 Series 106 is product information only and does not constitute investment advice or an investment recommendation, a product recommendation, an offer or solicitation to buy or sell this bond, or a solicitation to make 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 a certain degree of risk. The value of the investment and the earnings generated by the investment can change suddenly and considerably during the term and therefore cannot be guaranteed. There is a possibility that the investor may not get back the total amount of capital invested.

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