Earnings opportunities of international companies in the water sector:
The new HVB Garant Cap Anleihe on the “S&P Global Water Index”
- The new Garant Anleihe is based on the “S&P Global Water Index” and offers the opportunity to participate in a positive performance of the index
- Capital security due to repayment of at least 100 percent of the nominal value at the end of the term
- The capital is invested for a total of 8 years, during which time the bond can be sold under normal market conditions at its current price
The “S&P Global Water Index” forms the basis for the performance of the HVB Garant Cap Anleihe 10/2025. The index is calculated in Euro and includes 50 of the world’s leading multinational companies in the sectors water supply and water infrastructure as well as water treatment and water accessory. The bond provides 100 percent capital security by the issuer at the end of term. In the event the performance of the index is not positive, the capital security takes effect and the bond will be paid back at the nominal amount of EUR 1,000 per bond.
Christian Noisternig, Area Head Private Customers, Small Business and Independent Professions at UniCredit Bank Austria, emphasises: “With our new Interest Garant Anleihe on the ‘S&P Global Water Index’ we offer investors the chance to benefit from interesting investment opportunities in the promising sector of water supply and water treatment on a diversified basis in these times of low interest rates. The Garant Cap Anleihe also offers 100 percent capital security on maturity and will therefore be certainly welcomed by security-oriented investors.”
The new Garant Anleihe offers interesting investment opportunities in the medium-term maturity segment. When valuating performance, two average values are set. For this purpose on 13 observation dates at the beginning of the term (first observation period) and 13 observation dates at the end of the term (second observation period) the respective closing rates (reference prices) of the index will be determined. Two average values are formed: The average of the 13 reference prices at the beginning of the term will be compared to the average of the 13 reference prices at the end of the term. The performance of the index is calculated from these two average values.
If the performance of the index is greater than or equal to zero, investors receive the nominal amount of EUR 1,000 plus 80 percent of the of positive performance multiplied by the nominal amount per bond, up to the maximum of the cap (upper limit) of 40 percent on 3 October 2025, the defined repayment date. This means that the maximum redemption amount is EUR 1,400 per bond.
If the performance of the index falls below zero, the capital security takes effect and the investor is repaid at the nominal amount of EUR 1,000 per bond.1
The capital is invested for a total of 8 years, during which time the bond can be sold under normal market conditions at its current price. The applied “S&P Global Water Index” is calculated in Euro, the index sponsor and calculation agent is S&P Dow Jones Indices LLC.
The issue in detail:
HVB Garant Cap Anleihe 10/2025 based on the S&P Global Water Index
Issuer: UniCredit Bank AG (formerly Bayrische Hypo- und Vereinsbank AG)
Underlying instrument: S&P Global Water (Price) Index (EUR)
Start of offer: 21 August 2017 to 29 September 2017 (2:00 pm), subject to early closure
Redemption: 3 October 2025
Issue price: 104% (incl. 4% front-end load from UniCredit Bank Austria AG)
Denomination: EUR 1,000
Observation dates (I): 29 September 2017 (1), 30 October 2017 (2), 29 November 2017 (3), 29 December 2017 (4), 29 January 2018 (5), 28 February 2018 (6), 29 March 2018 (7), 30 April 2018 (8), 29 May 2018 (9), 29 June 2018 (10), 30 July 2018 (11), 29 August 2018 (12), 28 September 2018 (13)
Observation dates (II): 26 September 2024 (1), 28 October 2024 (2), 26 November 2024 (3), 27 December 2024 (4), 27 January 2025 (5), 26 February 2025 (6), 26 March 2025 (7), 28 April 2025 (8), 27 May 2025 (9), 26 June 2025 (10), 28 July 2025 (11), 26 August 2025 (12), 26 September 2025 (13)
Participation factor: 80%
Cap (upper limit): 140% in relation to the nominal value
Max. redemption amount: EUR 1,400
Stock market listing: Expected to be from 4 October 2017, Frankfurt (Open Market), Stuttgart (Open Market)
Fees and charges: Custodial fee: annually 0.235% + 20% VAT on the market value, at least EUR 3.92 annually + 20% VAT per securities position; but at least EUR 26.28 + 20% VAT per securities account.
Selling fees: 0.9% of the sale value, but at least EUR 86
Enquiries: UniCredit Bank Austria Media Relations
Matthias Raftl, Tel.: +43 (0) 5 05 05-52809;
This information regarding the HVB Garant Cap Anleihe bond 10/2025 based on the “S&P Global Water Index” is provided solely for advertising purposes and does not constitute investment advice, an investment recommendation, a product recommendation, or 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 amount of investment income may be subject to sudden and significant fluctuations during the term of investment, and for this reason they cannot be guaranteed. It is possible that the investor may not recover the entire amount of the initial investment.
1 Before deduction of 27.5 per cent KESt