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23.02.2021

Invest with 94% percent minimum redemption value at maturity:
The new "HVB bond with 94% minimum repayment 04/2029" based on the "Health Science Strategy Index"

  • New bond with 94% minimum repayment based on the “Health Science Strategy Index” offers scope to take maximum benefit from positive index developments
  • Minimum 94% repayment of face value by issuer at maturity
  • Bond matures after eight years and can then be sold under normal market conditions, either on the exchange or over the counter. 

The basis for development of the "HVB bond with 94% minimum repayment 04/2029" is the "Health Science Strategy Index". The index tracks the performance of the "BlackRock Global Funds - World Healthscience Fund A2 EUR" equity fund, taking into account a flexible hedging system. The "Health Science Strategy Index" consists of two components, the "BlackRock Global Funds - World Healthscience Fund A2 EUR" and the "HVB 3 Months Rolling Euribor Index" money market index. The "BlackRock Global Funds - World Healthscience Fund A2 EUR" is an equity fund that invests worldwide in companies that are mainly active in the following areas: Health, pharmaceuticals, medical technology, medical care and biotechnology. The "HVB 3 Months Rolling Euribor Index" money market index is calculated by UniCredit Bank AG and reflects the performance of an investment that is renewed every three months at an interest rate corresponding to the three-month Euribor.

The aim of the "Health Science Strategy Index" is to participate in the performance of the "BlackRock Global Funds - World Healthscience Fund A2 EUR" equity fund in a risk-optimised manner, taking into account a flexible hedging system. For this purpose, the system determines the participation of the controlling "Health Science Strategy Index" in the equity fund on the basis of the volatility (fluctuation in value) of the "BlackRock Global Funds - World Healthscience Fund A2 EUR" equity fund. The higher the volatility of the equity fund, the higher the proportion invested in the money market index. The lower the volatility of the equity fund, the higher the proportion invested in the fund.

Mauro Maschio, Member of the Board "Privatkundenbank" of UniCredit Bank Austria: "With the new HVB bond with 94% minimum repayment based on the ‘Health Science Strategy Index’, we are offering investors an interesting investment opportunity in the current low-interest environment. Investors are also given the opportunity to participate in the performance of the 'BlackRock Global Funds - World Healthscience Fund A2 EUR' fund in a risk-optimised manner. The topics of health care and health in general have been in the spotlight for some time now, not just because of the Corona crisis, but because of our steadily ageing population."

The closing value (reference price) of the "Health Science Strategy Index" (base value) is determined on the initial observation date, 06/04/2021. This is used to calculate the base price (94% of the reference price).

The reference prices from the first and last observation dates are then used to calculate the performance of the index. If, on the last observation date, the reference price of the index is the same as or more than the base price, redemption ensues per bond on the redemption date, 09/04/20290, at the nominal value of EUR 1000 plus positive or negative performance on a percentage basis multiplied by the nominal value. This means that the repayment amount on the redemption date may also be less than the nominal value of EUR 1000 but will amount to no less than EUR 940 per bond. Should the index's reference price be less than the base price on the last observation date, then redemption will be paid at the minimum redemption amount of EUR 940 per bond. Any loss is therefore limited to a maximum of 6% of the face value.

The capital is invested for a total of eight years and the bond can be sold under normal market conditions, either on the exchange or over the counter. The underlying "Health Science Strategy Index" is calculated in euro. UniCredit Bank AG is the index sponsor and index calculation agent.

The issue in detail:
"HVB bond with 94% minimum repayment 04/2029” based on the “Health Science Strategy Index"

ISIN: DE000HVB5541
Issuer:  UniCredit Bank Austria AG
Base value:  Health Science Strategy Index  (EUR)
Offer: 22 February to 2 April 2021 (14:00), subject to early closure
Redemption: 9 April 2029
Issue price:  100%
Purchase fees (premium): 4%
Denomination: EUR 1000
Observation dates: Initial: 6 April 2021; final: 3 April 2029
Participation factor: 100%
Minimum repayment at maturity: 94%
Listing: Expectation is from 9 April 2021 to 2 April 2029, Frankfurt (OTC), Stuttgart (OTC)
Expenses and fees: Custody fee: 0.235% + 20% VAT of market value annually, minimum EUR 3.92 annually + 20% VAT per unit but minimum EUR 26.28 + 20% VAT per securities account
Transaction fee:  0.7% of sale value (minimum EUR 63) plus full amount of third party costs

This advertisement is for publicity purposes only, and does not constitute investment advice or an investment recommendation, product recommendation, solicitation to buy or sell this bond or solicitation to make such an offer. It serves only as initial information, and is no substitute for advice or information based on the investor's individual circumstances and knowledge. Every capital investment is associated with risk. The value of the investment and the amount of yields may fluctuate suddenly and to a considerable extent, and therefore cannot be guaranteed. There is a possibility that the investor may not receive the entire amount invested. Total loss of the capital invested is possible. Investors are exposed to the risk that the issuer may not be able to meet its obligations under "HVB bond with 94% minimum repayment 04/2029", for example in the event of insolvency (debt default/overindebtedness) or an official order. This default risk also applies if, in the event of financial distress of the issuer, a creditor participation procedure (bail-in) is officially initiated by the competent resolution authority. Total loss of the capital invested is possible. There is no deposit guarantee for securities. 
This advertisement does not constitute a prospectus within the meaning of the EU Prospectus Regulation - (EU) 2017/1129. Only the information contained in the published Final Terms of the Structured Bonds and the Base Prospectus dated 9 June 2020, including any amendments or additions approved by the Federal Financial Supervisory Authority (BaFin) and communicated to the Financial Market Authority (FMA), is legally binding and authoritative. The approval of the prospectus is neither a recommendation nor any other endorsement to acquire these securities of UniCredit Bank Austria AG. It is recommended that these documents be reviewed carefully before making any investment decision in order to fully understand the potential risks and rewards of making an investment decision. The Final Terms and the Base Prospectus as well as prospectus supplements are available free of charge here or here (for investors in Austria) and here (for investors in Germany and Luxembourg) and at UniCredit Bank Austria AG, Rothschildplatz 1, 1020 Vienna, and in the branches of UniCredit Bank Austria AG. 
The basic information sheet for the aforementioned "HVB bond with 94% minimum repayment 04/2029" is available free of charge in the branches of UniCredit Bank Austria AG and here.
Bank Austria is happy to advise you on all opportunities, risks and expenses incurred.
You are about to purchase a product that is not simple and may be difficult to understand. 
US citizens and residents, taxpayers, and/or companies in the US may not offer or purchase the above structured product.


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