Podřízený dluhopis EGB 4,00%/2024

ISIN: AT000B120456  

 
2019/12/05 00:00:00
Bid Ask
104.82 -
Minimum yield -
Difference 0.22%(0.23)
General attributes
Type of bond Subordinated bonds
Bond style subordinated
Issuer type financial institution
Country of issue AT
Current coupon 4.000%
Coupon style fix
Coupon payment date 2015/02/07
Coupon payment period annually
Yield to maturity p.a. (before capital gains tax) 2.04
Value date 2014/02/07
Maturity 2024/02/07
Repayment value 100
Currency CZK
Nominal value 10,000
Capital gains tax -
EU withholding tax Yes
Accrued Interest 336.67
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 a 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 coupon of 4% per year.
  • Regular annual disbursement of coupons.  
  • The prices of bonds are usually given as the percentage of the nominal value. Purchase price means that the client is selling, selling price means that the client is buying.
  • Issue date: 7 February 2014
  • Currency: Czech crown (CZK)
  • Nominal value of a single bond: 10 000 CZK
  • Minimal investment: 1 piece
  • Bond maturity: 10 years
  • Coupon disbursement: annually
  • Fixed coupon: 4% p.a.
  • Maturity date: 7 February 2024
  • Price for the provision of early redemption: 2% of the transaction volume
  • Issuer: Erste Group Bank AG
  • Selling price: as per the current rates of Česká spořitelna
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 EGB 4%/2024 Subordinated Bond with attractive fixed interest-bearing offers an interesting yield potential.

In the current market environment of low interest rates, the EGB 4%/2024 Subordinated Bond offers an above-standard fixed coupon of 4% per year for the period of 10 years.

What does “Subordinated” mean?
In case of liquidation or insolvency of the issuer, in this case the Erste Group Bank AG, any unsubordinated liabilities (such as mortgage bonds and senior bonds) would be first covered, and only then the funds of investors holding subordinated bonds would be paid out. With a view to this risk, subordinated bonds offer a higher yield as a reward.

Payment notes
  • The fixed interest rate of 4% p.a. shall be applied to the bond.
Settlement
  •  The maturity date of the bond shall be 7 February 2024.
  • 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 rates table.

As of 1 August 2013 with the provision of state aid the principles are enforced as contained in the Communication from the Commission on the application of state aid rules to support measures in favour of banks in the context of the financial crisis (2013/C 216/01). According to these principles prior to the provision of aid for restructuring in any form, whether for the recapitalisation or rescue of impaired bank assets, all measures are to be taken for capital formation, including conversion of subordinated debts into equity. For subordinated debt holders these rules entail that they must contribute to reducing the capital shortfall, so their contributions can take the form of either a conversion of a bond to a share or a full write-down of their principal.

 
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.