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18.02.2019

Investing with capital security on maturity:
The new HVB Garant Anleihe based on the “Real Value Strategy II Index”

  • The new Garant Anleihe 10/2026  based ond on the "Real Value Strategy II Index" offers the opportunity to participate 100 percent in a 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
  • The term is seven years and six months, during which time the bond can be sold under normal market conditions at the current price 

The performance of the HVB Garant Anleihe 10/2026 is based on the “Real Value Strategy II Index”. The index consists of two components: One component is a weighted basket that represents the performance of the various asset classes. The other is a risk-reduced component used for the flexible backup system. The basket consists of Exchange Traded Funds (ETFs) on a European equity index, on European Real Estate Investment Trusts (REITs) and real estate companies, on gold and a money market ETF and is adjusted every three months to the target weighting. In the index, the distribution between the basket and the risk-reduced component is determined on the basis of the flexible security system. The money market ETF is again used as the risk-reduced component.

The bond offers 100 percent capital security at maturity by the issuer. 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.

Mauro Maschio, Member of the Management Board "Privatkundenbank" of UniCredit Bank Austria, emphasises: “The new Garant Anleihe, based on the ‘Real Value Strategy II Index’, offers investors the opportunity in the current low-interest environment to make use of opportunities for returns. The integrated capital security offers 100 percent capital security and limits the risk on maturity within the meaning of a security-oriented financial investment.”

The new Garant Anleihe provides interesting medium-term investment opportunities. The "Real Value Strategy II Index" invests more heavily in the weighted basket or in the money market ETF, depending on the level of market fluctuation. The aim of the index is to allow investors to participate in the performance of the basket in a risk-optimised manner. 

If the index has risen (performance between initial and final observation date), investors will receive the nominal amount of EUR 1,000 per bond plus the positive percentage performance multiplied by the nominal amounton the redemption date, 5 October 2026.

If the index has fallen (performance between the initial and final observation day) or if the performance is zero percent, the capital security takes effect and the redemption takes place at the nominal amount of EUR 1,000 per bond.

The capital is invested for a total of 7 years and 6 months, whereby the bond can be sold under normal market conditions on and off the stock exchange. The underlying "Real Value Strategy II Index" is calculated in euros. The index is sponsored and calculated by UniCredit Bank AG (formerly Bayerische Hypo- und Vereinsbank AG). 

The issue in detail:
HVB Garant Anleihe 10/2026 based on the “Real Value Strategy II Index” 
ISIN: DE000HVB37R0
Issuer: UniCredit Bank AG
Underlying security: Real Value Strategy II Index (EUR)
Proposal: from 18.02.2019 to 29.03.2019 (14 hrs), subject to early termination
Redemption price: 5/10/2026
Issue price: 100%
Agio: 4%
Denomination: EUR 1,000
Valuation dates: initially: 18/02/2019, final: 28/09/2026
Participation factor: 100%
Exercise price: 100%
Capital security at end of term: 100%
Stock market listing: Expected from 04/04/2019, 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 Garant Anleihe 10/2026 based on the Real Value Strategy II 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.


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