Podřízený dluhopis EGB Fix-To-Float / 2028

ISIN: AT0000A21LF7  

 
2019/12/09 00:00:00
Bid Ask
92.33 -
Minimum yield -
Difference -0.08%(-0.08)
General attributes
Type of bond Subordinated bonds
Bond style subordinated
Issuer type financial institution
Country of issue AT
Current coupon 2.220%
Coupon style floating
Coupon payment date 2018/12/18
Coupon payment period semi annually
Yield to maturity p.a. (before capital gains tax) -
Value date 2018/06/18
Maturity 2028/06/18
Repayment value 100
Currency CZK
Nominal value 10,000
Capital gains tax -
EU withholding tax Yes
Accrued Interest 109.15
since inception


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: Česká spořitelna, a. s.
Advantages Details you should be aware of

Why buy the subordinated bond?

  • It reflects the quality of the Erste Group Bank as a strong Central European bank, offering concurrently a higher yield compared to classical bond products.
  • Attractive fixed interest of 1.5 % p. a. in the first year.
  • Attractive floating interest from 1% p.a. to 4% p.a. in the following years.
  • Regular half-year disbursement of interest.
  • The prices of bonds are given as the percentage of the nominal value. Purchase price means that the client is selling, selling price means that the client is buying.
  • The holder of the subordinated bond bears the issuer´s credit risk.
  • Date of issue: 18 June 2018
  • Currency: Czech crown (CZK)
  • Nominal value of a single bond: CZK 10,000
  • Liquidity: daily according to the Exchange Rate List of Česká spořitelna
  • Minimum investment: 1 piece
  • Fixed interest (in the first year): 1.5% p. a.
  • Floating interest from the 2 year until the maturity date: 6M PRIBOR, however at minimum 1% p. a., maximum 4% p. a.
  • Price for the provision of early redemption: 2% of the transaction volume
  • Interest payout: 2x a year, always at 18 June and 18 December 
  • Issuer: Erste Group Bank AG
  • PRIBOR rate: https://www.cnb.cz/cs/financni_trhy/penezni_trh/
    pribor/denni.jsp
  • Selling price: according to the current Exchange Rate List of Česká spořitelna, depending on the market trend
  • Distributor costs valid at the sale stating date: approximately 0.2% p.a., you can find the exact wording in the Agreement for Purchase of Podřízený dluhopis EGB Fix-To-Float / 2028
  • Issuer costs valid at the sale starting date: you can find the exact wording in  the Notification of Key Information
  • Specific risks associated with the subordinated bond:
    If the issuer finds itself in a situation requiring increase of regulatory capital, all measures will need to be taken first to internally create capital in accordance with applicable European legislation. The regulatory authority may order the transformation of subordinated bonds into equity (shares), reduction of their principal, or their full depreciation. If the issuer, in this case Erste Group Bank AG, is liquidated or becomes insolvent, all unsubordinated debt obligations shall firstly be settled (e.g. mortgage bonds, senior bonds) and only then will investors in subordinated bonds receive their funds. A further risk for subordinated bond holders is the possible limitation of their liquidity. It cannot be ruled out that in future it will not be possible to trade bonds on any market nor sell them before their maturity date. In view of these risks subordinated bonds offer the bonus of a higher yield.
Description

Do you trust the financial strength of the Erste Group Bank and would you like to be part of the success of this renowned Central European financial group? The Podřízený dluhopis EGB Fix-To-Float / 2028 offers an interesting yield potential with a fixed as well as floating interest-bearing.

For its duration this subordinated bond offers its clients two types of yield interest: fixed and floating. In a short-term period of one year duration in the current low-interest environment, it offers an above standard fixed interest of 1.5% p.a. Then in the next nine years until repayment its yield shall be based on the six-month PRIBOR rate while the minimum interest shall be 1% p.a. and the bond will pay out a maximum of 4% p.a.

Podřízený dluhopis EGB Fix-To-Float / 2028 is ideal for anybody who expects an increase of interest rates over a longer period of time.

Payment notes

How the yield is calculated?

  • In the first year the fixed interest rate of 1.5% p.a. shall be applied to the bond.
  • In the following years, a floating interest rate shall be applied to the bond which shall be determined every half a year on the basis of the current six-month PRIBOR interbank interest rate and shall range from the minimum of 1% p.a. to the maximum of 4% p.a.
  • If the six-month PRIBOR is fixed in the range from 1% to 4% including these values, the investor shall receive an interest in the amount corresponding to this specific value.
  • If the six-month PRIBOR is fixed under 1% (e.g. 0.7 the investor shall receive an interest in the amount of 1% p.a.
  • If the six-month PRIBOR is fixed above 4% (e.g. 5.5%), the investor shall receive an interest in the amount of 4% p.a.
  • The interest shall be disbursed on a six-month basis.
Settlement
  • The maturity date of the bond shall be 18 June 2028
  • The disbursement of the yield as well as the nominal value shall be conducted by Česká spořitelna.
  • The bond purchase as well as sale settlement takes 3 business days.
Secondary market
  • Minimum purchased quantity: 1 piece
  • The bond may be sold also prior to its maturity date for the price specified by the current Exchange Rate List 
 
Disclaimer
In the period before maturity, the bond price can fluctuate above and below the bond face value depending on the development of the interest rate and underlying asset. A bond can ben sold even before the maturity date, for the price pursuant to the pricelist of the issuer. Our consultants will give you detail information on the advantages and risks of investment in bonds. The information sources used are generally regarded as reliable, although Česká spořitelna and Erste Group Bank AG cannot guarantee the correctness and completeness of the information contained therein. The aim of this web page is to give information on the services and products contained therein; it is not a binding proposal establishing any rights and obligations for participants. All information you can find here is of informative nature only. Before using the web page for investment, a specialized Česká spořitelna consultant should be consulted.