KBC IFIMA S.A. (LUX) structured Note in USD 6 year with a fixed and a variable interest rate


KBC IFIMA S.A. (LUX) structured Note in USD 6 year with a fixed and a variable interest rate

  • Structured Note in foreign currency
  • Annual coupon, partially fixed rate, partially linked to the USD CMS rate on 5 years (being the interbank reference rate for a swap in USD of a fixed rate against a variable rate with a 5-year tenor)
  • Held free of charge in your KBC Custody Account

From Monday, 31 October 2016 (9 a.m.) through Friday, 2 December 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 6 years
Maturity Date 7 December 2022

101.50% (including a placement fee of 1.50%).

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 USD (without placement fee), i.e. USD 2,000.00 per Denomination, except in case of bankruptcy or risk of bankruptcy of the Issuer or the Guarantor or in case of Bail-in.

Investment objective
With an investment in this product one expects on a moderate increase in USD CMS rate on 5 years.

During the first 3 years a fixed Coupon of 2.00%. As of year 4 a variable Coupon equal to the USD CMS rate on 5 years, with a minimum of 1.50% and a maximum of 4.50%. . The probability that a maximum coupon will be paid, is very limited. Moreover, chances are very low for the successive variable coupons that the maximum coupon amount will be paid. The Coupon is payable annually on 7 December each year, from 7 December 2017 until the Maturity Date. The amounts set out in this section, are annualized and before deduction of withholding tax (currently at 27%).
Taxes on stock market transactions Tax on stock market transactions when buying or selling on the secondary market if such transaction is either entered into or carried out in Belgium: 0.09% with a maximum of EUR 650.

For more information concerning the working of the product, returns and examples of the working of the product, we refer to the sections “More information on the USD CMS rate curve” and “Historical evolution of the EUR/USD exchange rate” from page 6 of the Product info sheet.
Denomination USD 2,000


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 (stable 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.


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 USD, an investment in the Notes represents a risk relating to the conversion of USD into EUR with respect to Interest and the Amount Invested. (the USD/EUR exchange rate can be volatile during the life of the Notes); (iii) the risk related to the CMS USD rate curve - the Notes are linked to the USD CMS rate curve as of year 4, an investment in the Notes will entail a risk for the Interest relating to USD CMS rate on 5 years; (iv) 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; (v) 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 (vi) ‘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 complex product (the “Notes”) is a debt instrument intended for investors who have the necessary knowledge and 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, exchange rates and the USD CMS rates).

Learn more

  • Product info sheet
  • Final terms, including Summary of Notes in English (31 October 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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