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26.03.2018

Benefit from regular interest payments with capital security on maturity:
The new HVB Zins Garant Anleihe based on the “Real Value Strategy Index”

  • The new Zins Garant Anleihe 06/2025 based on the “Real Value Strategy Index” gives you the opportunity to participate 50 per cent in any positive development of the index
  • Capital security thanks to repayment of at least 100 per cent of the nominal value at the end of the term
  • In the first six years of the term, interest payments are made in the amount of 0.50 per cent p.a.
  • The term is seven years and one month, during which time the bond can be sold under normal market conditions at the current price

The performance of the HVB Zins Garant Anleihe 06/2025 is based on the “Real Value Strategy Index”. The index reflects two components: One is a weighted basket, which reflects the performance of various asset classes, such as equities, real estate, the commodity gold and a money market ETF. The other is only a low-risk money market ETF, which is used for the flexible security system.

In the first six years of the term, the current Garant Anleihe, independent of the performance on the respective interest payment date, offers an interest payment in the amount of 0.50 per cent p.a.*, in relation to the nominal value. On maturity (after seven years and one month), in the event of a positive performance, the nominal value plus 50 per cent of the performance in relation to the nominal value is paid back. If the performance of the index is not as desired, the capital security is retrieved on maturity and the investors receive at least the nominal value of EUR 1,000 per share.

Markus Kosche, Head of Retail Sales Private Customers, Small Business and Independent Professions at UniCredit Bank Austria, emphasises: “The new Zins Garant Anleihe, based on the ‘Real Value Strategy Index’, offers investors the opportunity in the current low-interest environment to invest in various asset classes, such as equities, real estate, the commodity gold and a money market component, and to make use of opportunities for returns. The integrated capital security limits the risk on maturity within the meaning of a security-oriented financial investment.”

The basket of this underlying bond consists of exchange-traded funds (ETFs) on a European equity index, on European real estate investment trusts and real estate companies, on gold and a money market ETF, and is adjusted every three months to the target weighting. The bond offers 100 per cent capital security on maturity through the issuers.

The new Garant Anleihe provides interesting medium-term investment opportunities. The division between the basket and the low-risk component, the money market ETF, is based on the flexible security system of the “Real Value Strategy Index”. During quiet periods on the financial markets, the index shall participate in the performance of the basket. In return, the flexible security system shall assign the basket a high weighting and the money market ETF a low weighting. During periods with a continual rise and fall on the markets, the participation of the index in the performance of the basket will be reduced and its participation in the money market ETF will be increased.

The increased participation of the index in the performance of the money market ETF can ensure that the risk for investors is limited as far as possible. The capital is invested for a total of seven years and one month, during which time the bond can be sold under normal market conditions at the current price. The underlying “Real Value Strategy Index” is calculated in euros. The index sponsor and calculation agent is UniCredit Bank AG (formerly Bayerische Hypo- und Vereinsbank AG).

The issue in detail:
HVB Zins Garant Anleihe 06/2025 based on the “Real Value Strategy Index”

ISIN: DE000HVB2FN1
Issuer: UniCredit Bank AG
Underlying security: Real Value Strategy Index (EUR)
Proposal: from 26/03/2018 to 07/05/2018 (2 p.m.), subject to early termination
Redemption price: 11/06/2025
Issue price: 100% plus 1.5% premium
Denomination: EUR 1,000
Coupon: 0.5% p.a. (before a deduction of 27.5% KESt) in the first six years of the term
Valuation dates: initial: 08/05/2018, final: 04/06/2025
Participation factor: 50% of positive performance of the underlying
Exercise price: 100%
Capital security at end of term: 100%
Stock market listing: Expected to be from 14/05/2018, 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: 0.70% of the market value (at least EUR 63) plus external costs in full

Disclaimer:
This information regarding the HVB Zins Garant Anleihe 06/2025 based on the Real Value Strategy 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.

*Before a deduction of 27.5% KESt

Enquiries: UniCredit Bank Austria Press Office
Volker Moser, Tel.: +43 (0)5 05 05-52854;
Email: volker.moser@unicreditgroup.at