|Date: 2020/04/03 12:00:18|
|Type of bond||Erste Group credit linked notes|
|Issuer type||financial institution|
|Country of issue||AT|
|Reference entities||Allianz SE, Commerzbank AG, Deutsche Bank AG|
|Coupon payment date||2021/01/20|
|Coupon payment period||annually|
|Yield to maturity p.a. (before tax)||0.85|
|VaR class (10 days)||-|
|VaR 10 days||-|
|VaR 250 days||-|
|Advantages||Risks you should be aware of|
|"Erste Group Bonitätsabhängige lineare Anleihe auf Allianz SE, Commerzbank AG & Deutsche Bank AG 2013-2021" is a credit-linked bearer bond issued by Erste Group Bank AG ("the issuer") with a maturity of about seven years. The magnitude of coupon and redemption payments depends on whether any reference debtor has incurred a credit event, and if so, how many reference debtors.|
In the absence of any reference debtors incurring a credit event, the investor receives a coupon payment at the respective fixed coupon date of 4.00% p.a., and "Erste Group Bonitätsabhängige lineare Anleihe auf Allianz SE, Commerzbank AG & Deutsche Bank AG 2013-2021" is redeemed at face value at the due date (subject to the default risk of Erste Group Bank AG).
If one or more of the reference debtors incur a credit event, the size of the redemption hinges on the number of reference debtors that have incurred said event. Each occurrence of a credit event per reference debtor reduces the redemption amount by 33.3333 percentage points in terms of nominal value. Credit events are a) the insolvency of the reference debtor, b) his default on debt, and c) debt restructuring (e.g. a cut in the interest rate or the redemption amount, the extension of the maturity of a debt by the reference debtor).
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. On top of this, if a credit event occurs, for each reference debtor affected by such event the interest rate paid to the investors is reduced by 1.3333 percentage points from the beginning of the interest period where the credit event occurred until the end of maturity. The risk of (up to) a total loss of capital is represented by the occurrence of a credit event at the reference debtor. If each reference debtor incurs a credit event, interest payments and redemption of the nominal are reduced to zero as described above.
|This bearer bond that depends on the credit risk of the reference debtor pays a fixed interest rate of 4.00% 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 January 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 issued on a continuous basis, publicly offered in Germany and listed in Austria. Listing at Baden-Württembergische Wertpapierbörse as well at Frankfurter Wertpapierbörse (unofficial market / unregulated market) is scheduled for 04 December 2013. From the value date onwards the bearer bond can be traded on each stock exchange day during traiding 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. The bearer bond will be issued on a continuous basis.|
Any information, material and services regarding financial instruments and securities provided by Erste Group Bank AG or any of its affiliates (collectively “Erste Group“) on this and any linked website hereafter (jointly the “Websites”) shall be exclusively to investors who are not subject to any legal sale or purchase restrictions (the “Interested Party“).
The publication and distribution of information as well as offering and selling of products and services described on the Websites is prohibited by law in some jurisdictions. For this reason, persons in countries in which the publication as well as the offering and selling of products and services described on the Websites are not permitted by law, must not enter the Websites and/or acquire the products displayed on the Websites.
Neither Erste Group nor any third party shall offer access to the Websites or offer the products to especially, but not limited to citizen/residents of the United States and “U.S. person” (as defined in Regulation S under the US Securities Act 1933 as amended). For this reason, the distribution or redistribution of the information, materials and products into United States or into any other jurisdiction where it is not permitted under the applicable law, as well as to the citizens/residents of these countries shall be prohibited. The securities displayed on the Websites have not been and will not be registered under the US Securities Act of 1933 and trading in the securities has not been approved for purposes of the US Commodities Exchange Act of 1936. For this reason the securities may, inter alia, not be offered, sold or delivered within the United States or, for the account and benefit of U.S. persons.
The Interested Party is solely responsible to examine, whether he may enter the Websites under the law applicable to it. Erste Group shall not be responsible for the distribution of content of any of the Websites to individuals or entities which provide false information about their right to enter the Websites. For this reason Erste Group shall not be liable for any legal claims or damages which may result from the unauthorized entering or reading of the Websites.
By agreeing to this hereto, the Interested Party confirms that
(i) It has read, understood and accepted this Information and the Disclaimer;
(ii) It informed itself about any possible legal restriction and warrants that it is not restricted or prohibited to enter the Websites according to any law applicable; and
(iii) It does not make available the contents of the Websites to any person who is not qualified by law to enter the Websites.