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Erste Group Bonitätsabhängige lineare Anleihe auf Allianz, AXA, Commerzbank & Deutsche Bank (2014-2024)


ISIN:
AT0000A189T3
WKN:
EB0EQ6

Date: 2020/02/20 18:24:54
Bid Ask
111.067 -
Difference 0.00% (0.00)

General attributes

Type of bondErste Group credit linked notes
Bond stylesenior
Issuer typefinancial institution
Country of issueAT
Reference entities-
Current coupon3.250%
Coupon stylestep up
Coupon payment date2020/10/20
Coupon payment periodannually
Yield to maturity p.a. (before tax)-
Value date2014/07/23
Maturity2024/10/20
Repayment value100.00
CurrencyEUR
Minimum unit1000

Value at Risk

VaR class (10 days)-
VaR 10 days-
VaR 250 days-
Date-

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Performance since inception. Performances under 12 month have only little informative value because of the short maturity. Information about previous performance does not guarantee future performance.
Source: Erste Group Bank AG
Advantages Risks you should be aware of
  • attractive coupon in the absence of a credit event
  • Due to the combination of several debtors (issuer and reference debtor) a credit-linked bond offers a higher coupon than bonds issued by either of these debtors would pay.
  • redemption at 100% of face value if no credit event occurs
  • Investors are subject to the risk of the insolvency and thus default of the issuer and may incur capital losses of up to 100%.
  • Investors also bear the default risk of the reference debtors. If a credit event occurs, the face value is reduced by the reduction rate of the reference debtor affected, and the bond is redeemed at the cash settlement amount on the due date. All following coupon payments are reduced. Additional credit events are treated accordingly, triggering further reductions of the cash settlement amount and the coupon payment. If all reference debtors have been subject to a credit event, no further coupon payments are made. There is no redemption as the cash settlement equals zero. In the worst case the investor therefore loses his/her entire investment. The occurence or the possibility of the occurence of a credit event may also trigger a modification of the original coupon dates or the due date.
  • The bond price is subject to fluctuations during the life of the bond, which may result in losses.

Description

This bond refers to Allianz SE, AXA S.A., Commerzbank AG und Deutsche Bank AG (reference debtors). It has a fixed maturity and falls due on 20.10.2024 (due date). The magnitude of coupon and redemption payments basically depend on the creditworthiness of the reference debtor. In one of the following events affecting the solvency of the reference debtors (a "credit event"), coupon payment and redemption are reduced.

The following events represent a credit event:
- bankruptcy
- failure to pay
- restructuring

In the absence of a credit event, the investor receives a coupon payment and the bond is redeemed at the end of maturity at 100% of face value.

If any reference debtor is subject to a credit event, the face value is reduced by the reduction rate of the reference debtor affected. As a result, the coupon payments after the credit event are reduced accordingly, and the bond is redeemed at the cash settlement amount on the due date. If additional reference debtors are subject to credit events, they are treated in line with the aforementioned methodology, and the cash settlement amount is reduced accordingly.

If all reference debtors have been subject to a credit event during the observation period, no further coupon payments are made. There is no redemption as the cash settlement equals zero.

Payment notes

This credit-linked bond pays a coupon of initially 2.75% p.a. that is gradually increased in steps to 4.00% p.a., provided no credit event has occured.

Settlement

This credit-linked bond will be redeemed on 20. October 2024 at 100 % of face value, provided no credit event has occured and subject to the default risk of Erste Group Bank AG.

Secondary market

The bond will be issued on a continuous basis and publicly offered in Germany. From the issue date onwards the bond can basically be traded on a stock exchange or over-the-counter. Under normal trading conditions the issuer will continuously quote indicative prices. Listing at the unofficial market of Stuttgarter Wertpapierbörse (Baden-Württembergische Wertpapierbörse) and Frankfurter Wertpapierbörse is scheduled. The decision about the admission to the respective market and the actual listing will be taken by the board of the respective stock exchanges. From admission onwards the bond can be traded on each stock exchange during trading hours.

Underlying


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