|Date: 2021/03/05 17:33:28|
|Type of bond||Erste Group credit linked notes|
|Issuer type||financial institution|
|Country of issue||AT|
|Coupon style||step up|
|Coupon payment date||2021/10/20|
|Coupon payment period||annually|
|Yield to maturity p.a. (before tax)||-|
|Advantages||Risks you should be aware of|
|The "Erste Group Bonitätsabhängige Anleihe auf Daimler AG 2013-2021" is a credit-linked bearer bond issued by Erste Group Bank AG with a maturity of about eight years, unless a credit event occurs with regard to the reference debtor, Daimler AG, in which case the bond would be redeemed prior to maturity. |
The annual coupon and the redemption depend on the reference debtor not incurring a credit event. In the absence of a credit event, the investor receives a coupon payment on the respective interest date, and the "Erste Group Bonitätsabhängige Anleihe auf Daimler AG 2013-2021" is redeemed at the end of maturity at nominal value (subject to the default risk of Erste Group Bank AG).
The risk of (up to) a total loss of capital is represented by the occurrence of a credit event at the reference debtor. In this case all future interest payments are void, and the bond is redeemed prior to maturity in a cash clearing transaction, which may amount to zero.
The insolvency of the reference debtor, his default on debt, and debt restructuring (e.g. a cut in the interest rate or the redemption amount, the extension of the maturity of a debt) are regarded as credit events. A default on debt is any situation where the reference debtor fails to make payment due with respect to one or more liabilities on the due date and at the place of payment, with the total amounting to at least the defined payment threshold.
Said payment threshold amounts to USD 1,000,000 or the equivalent in the currency owed (i.e. the currency the respective debt owed by the reference debtor is denominated in) at the time of non-payment or potential non-payment.
The product is geared to investors who do not expect the reference debtor to incur a credit event during the life of the bond. In this case the interest payments may result in a yield superior to that offered by comparable bonds issued by the reference debtor.
|This bearer bond that depends on the credit risk of the reference debtor pays a increasing interest rate from 3.00% up to 3.50% p.a. However, payment is subject to the occurrence of a credit event.|
|This bearer bond that depends on the credit risk of the reference debtor is redeemed on 20 October 2021 at 100% of nominal value, subject to the occurrence of a credit event and the default risk of Erste Group Bank AG.|
|The bearer bond will be publicly offered in Germany and listed in Austria. Listing at Baden-Württembergische Wertpapierbörse as well at Frankfurter Wertpapierbörse (unofficial market) is scheduled for 4 September 2013. From the value date onwards the bearer bond can be traded on each stock exchange day during trading hours. However, Erste Group Bank AG cannot guarantee the existence or maintenance of an active market throughout the entire life of the bond. The issuer will, as a rule, continuously quote prices, but is not obligated to do so. Neither is the issuer obligated to redeem the bonds. During the life of the bond its price will be significantly determined by the general development of interest rates, the fluctuations on the capital market, the rating of the reference debtor and the general economic scenario.|
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