Erste Group Bonds

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Date: 2023/11/28 08:30:21
Bid	Ask
84.90	-
Difference	0.00% (0.00)

General attributes

Type of bond	Erste Group subordinated bonds
Bond style	subordinated
Issuer type	financial institution
Country of issue	AT
Current coupon	3.067%
Coupon style	floating
Coupon payment date	2024/06/19
Coupon payment period	annually
Yield to maturity p.a. (before capital gains tax)	-
Value date	2020/06/19
Maturity	2030/06/19
Repayment value	100.00
Currency	EUR
Minimum unit	1,000

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Final Terms
Key Information Document

Scale: ABS REL Instrument

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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

2.50 % p.a. interest for the first year
From the second year onwards interest payment equals the 10-year-EUR-CMS rate, minimum interest payment is 2.00 % p.a., maximum interest payment is 4.00 % p.a.
Redemption at 100 % of nominal amount at maturity by Erste Group Bank AG
Redemption at 100 % of nominal amount also in case of extraordinary early repayment by Erste Group Bank AG due to legal or tax changes

The variable interest starting in the second year is limited to 4.00 % p.a., even if the 10-year-EUR-CMS rate is higher than 4.00 %.
In the event of insolvency of Erste Group Bank AG the claims of the investors of this subordinated bond are settled only after satisfaction of those of all non-subordinated debt instruments.
Redemption at 100 % of nominal amount is only valid if there is no insolvency of Erste Group Bank AG or statutory loss sharing obligation according to BaSAG (Austrian law for restructuring and liquidation of banks). In these cases, there are no further interest payments and the redemption can be limited or there is no redemption at all.
Redemption at 100 % of nominal amount is only valid at maturity or in case of extraordinary early repayment by Erste Group Bank AG due to legal or taxes changes. Investors may incur capital loss when selling the bond prior to maturity.
Investors bear the credit risk of Erste Group Bank AG regarding the redemption of nominal amount. The credit risk refers to the risk that the debitor fails to fulfill his obligations partly or completely.
This bond is not covered by any deposit guarantee scheme. Investors is exposed to the risk that Erste Group Bank AG may not be able to meet its obligations arising from the bond in the event of insolvency or over-indebtedness or from an official order (bail-in regime). Due to the subordinated nature of the obligations of Erste Group Bank AG from the bond, in the event of insolvency of Erste Group Bank AG the claims of the creditors from the bond are only served when all claims of non-subordinated creditors of Erste Group Bank AG have been fulfilled. The claims of the creditors from the bond cannot be offset against the claims of Erste Group Bank AG. A total loss of invested capital is possible.

Description

The bond has a term of 10 years. Interest is paid annually, starting with 19/06/2021. The interest is fixed at 2.50 % for the first year and variable thereafter. The variable interest equals the 10-year-EUR-CMS rate, minimum interest payment is 2.00 % p.a., maximum interest payment is 4.00 % p.a.

The 10-year-EUR-CMS rate is the EUR 10-year constant maturity swap (CMS). This interest rate is mainly used for long-term, Euro-denominated loans on the capital market with a maturity of 10 years. The interest rate is determined daily by the Intercontinental Exchange (ICE,) historical interest rates are published on https://www.theice.com/marketdata/reports/180.

This bond is redeemed on 19/06/2030 at 100 % of nominal amount, if there is no extraordinary early repayment due to legal or tax changes or no statutory loss sharing obligation. In the event of extraordinary early repayment due to legal and tax changes redemption is at 100 % of nominal amount.

Possible conflicts of interest: Erste Group Bank AG has an interest to issue their own financial instruments. The interest exists especially in the issue of subordinated bonds which with the possible statutory loss sharing obligation can lead to an increase of equity ratio of Erste Group Bank AG.

Please refer to the final terms for more details on subordination, early redemption and possible statutory loss sharing obligation this bond.

Payment notes

The interest is fixed at 2.50 % for the first year and variable thereafter. The variable interest equals the 10-year-EUR-CMS rate, minimum interest payment is 2.00 % p.a., maximum interest payment is 4.00 % p.a.

Interest is paid annually on 19/06, starting with 19/06/2021.

Settlement

This bond is redeemed on 19/06/2030 at 100 % of nominal amount, if there is no extraordinary early repayment due to legal or tax changes or no statutory loss sharing obligation. In the event of extraordinary early repayment due to legal and tax changes redemption is at 100 % of nominal amount.

Secondary market

During the term it is possible to sell the product during the trading hours at the exchanges, where the product is listed.

Underlying

Know-How

In our know-how area you can find all relevant details on the different types of bonds. The tutorial gives you selected information about the functionality of bonds and assists you in making your investment decision.

Go to Know-How

Contact

Do you have any further questions which are not covered in our know-how area? Please ask directly our product specialists via our contact form.

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INFORMATION FOR PRIVATE CLIENTS / CONSUMERS

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.

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