KBC IFIMA S.A. (LUX) 5 year Note in AUD with a fixed interest rate

05.09.2016

KBC IFIMA S.A. (LUX) 5 year Note in AUD with a fixed interest rate

  • Note in foreign currency
  • Annual fixed gross coupon of 3.00% per year, i.e. AUD 45.00 per Denomination
  • Held free of charge in your KBC Custody Account

From Monday, 5 September 2016 (9 a.m.) through Friday, 30 September 2016 (4 p.m.) (unless the subscription period is closed early), you can subscribe to a non‐subordinated, structured Note issued by KBC IFIMA S.A. (LUX) (“the Issuer”), guaranteed by KBC Bank (“the Guarantor”).

Main features

Term 5 years
Maturity Date 5 October 2021
Uitgifteprijs

101.25% (including a placement fee of 1.25%).

Please take into account the foreign exchange rate commission which is usually 1.00% of the foreign exchange rate applied on the relevant payment date.

All rates and charges on securities transactions applying at KBC Bank NV can be found at the Schedule of rates and charges.

Amount repaid at the Maturity Date Investors are entitled to receive 100.00% of the amount invested in AUD (without placement fee), i.e. AUD 1,500.00 per
Denomination, except in case of bankruptcy or default of the Issuer and the Guarantor or in case of Bail-in 

Investment objective
An investment in this product can be attractive as a re‐investment in Australian Dollar.

Coupon
On a yearly basis and per Denomination, you are entitled to a coupon of 3.00% annually, i.e. AUD 45.00 per Denomination, payable on 5 October of each year, from 5 October 2017 up to and including the Maturity Date.

Yield

The Gross Yield in AUD is 2.73%* (including Placement Fee and before withholding tax), if the Notes are held until the Maturity date. You can find more information under “Gross Yield to Maturity” in the Product info sheet.

The Yield in AUD after withholding tax (currently 27%) is 1.93% if the Notes are held until the Maturity Date. You can find more information under “Yield to Maturity after withholding tax” in the Product info sheet.

Denomination AUD 1,500

Listing

Regulated market of the Luxembourg stock exchange.

Governing law
The Notes, the Guarantee and the Coupons are governed by English law. The ranking of claims on the Guarantee and the status of the Guarantee are governed by Belgian law.

Guarantor rating

Moody’s A1 (stable outlook)

S&P A (negative outlook)

Fitch A‐ (positive outlook)

These ratings are purely indicative and do not constitute a recommendation to buy, sell or hold the Notes issued by the Issuer. For more details on these ratings, see: the ‘credit ratings’ section of the ‘investor relations’ page on www.kbc.com.

Risico’s

Investors are being asked to inspect all the risks inherent in the product and in particular (i) the credit risk – the repayment of capital invested and interest payments depend on the solvency of KBC IFIMA S.A. (the Issuer) and KBC Bank NV (the Guarantor); (ii) the exchange rate risk ‐ the Notes are denominated in AUD, an investment in the Notes represents a risk relating to the conversion of AUD into EUR with respect to Interest and the Amount Invested. (the AUD/EUR exchange rate can be volatile during the life of the Notes); (iii) liquidity risk ‐ the listing on the official list of the Luxembourg Stock Exchange does not guarantee that an active market will develop and therefore it is possible that investors will not be able to sell their Notes before the Maturity Date; (iv) risk on fluctuations of the price of the product (market risk) ‐ the price of the Notes can fluctuate due to various factors such as interest rate movements and market volatility and (v) ‘bail‐in’ risk ‐ In the event that the KBC Bank Group (i.e. KBC Bank NV and its affiliates) reaches the point of non‐viability, these Notes could be cancelled in whole or in part or converted into capital instruments (shares), depending on the decision of the regulator (the so called “bail‐in”).

The risk factors are described in the Base Prospectus on pages 28 et seq., and in the Product info sheet on pages 3-4.

This product (the “Notes”) is a debt instrument intended for investors who have the necessary knowledge or experience to assess the benefits and risks of an investment in this type of product, based on their financial situation (more in particular, investors who are familiar with interest rate and exchange rates ).

Learn more

  • Product info sheet
  • Final terms, including Summary of Notes in English (5 September 2016)
  • Base Prospectus for EMTN programme (21-06-2016)
  • Supplement 15-09-2016
  • Summary of Base Prospectus in English (21-06-2016)

If you have any complaints please contact complaints@kbc.be (tel. 0800 62 084) and/or ombudsman@ombudsfin.be.

 

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