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First WohnbauAnleihe bond of Bank Austria Wohnbaubank based on a Trust Agreement

  • Convertible bond carrying 1.4 per cent fixed interest rate

Bank Austria Wohnbaubank has launched its first WohnbauAnleihe bond for security-oriented investors based on the Trust Agreement with UniCredit Bank Austria AG.

The new “1.40 Prozent fix verzinste Wandelschuldverschreibung 2016-2026/1” has a term of 10 years. The interest rate is going to be paid for the first time in April 2017.

The WohnbauAnleihe bond is denominated in 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 bond 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 27,5 per cent. 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.

Entrepreneurs and independent professionals benefit from the tax allowance for business profits
Wohnbauanleihe bonds are the only securities products 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 priovisions mean that additional funding will be available for housing construction.

Details of the bond issue:

“1.40 Prozent Wandelschuldverschreibungen 2016–2026/1“

Issuer: Bank Austria Wohnbaubank AG
Trustor: UniCredit Bank Austria AG
First value date: April 13 2016, thereafter plus accrued interest
ISIN: AT000B126081
Term: 10 years, 13 April 2016 – 12 April 2026
(based on the nominal value of 100%):
1.4% p.a. (Exempt from Austrian capital yields tax on presentation of a declaration of personal assets.)

Interest payments: Due and payable on 13 April of each year, for the first time on 13 April 2017.
Repayment/redemption: On 13 April 2026 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 was set at 101.7 per cent. An additional 1.2 per cent issue surcharge will be settled.
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 1 January, for the first time on 1 January 2018.
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 27,5 per cent Austrian capital yields tax.
– Capital gains on a sale underlie the 27,5 per cent Austrian capital yields tax.
– 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 27,5 percent Austrian capital yields tax. 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 bond 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 bond is issued under a basis prospectus dated April 8th, 2016 which was published pursuant to Section 7 of the KMG on April 9th 2016 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: UniCredit Bank Austria Pressestelle
Matthias Raftl, Tel.: +43 (0) 50505 - 52809;
E-Mail: matthias.raftl@unicreditgroup.at