KBC IFIMA S.A. (LUX) 3 year Note in AUD with a fixed interest rate

KBC IFIMA S.A. (LUX) 3 year Note in AUD with a fixed interest rate

  • Note in foreign currency. As a result, the investors bear a significant exchange rate risk as described below under “Risks” 
  • Annual fixed gross coupon of 2,65% per year, i.e. AUD 53,00 (gross) per Denomination, except in case bankruptcy or risk of bankruptcy of the Issuer or the Guarantor or in case of Bail-in
  • Held free of charge in your KBC Custody Account
  • 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).

From 8 January 2018 (9 a.m.) through 26 January 2018 (4 p.m.) (unless the subscription period is closed early), you can subscribe to a non-subordinated Note issued by KBC IFIMA S.A. (LUX) (“the Issuer”), guaranteed by KBC Bank (“the Guarantor”).

Main features

Term 3 years
Maturity Date 1 February 2021
Issue Price 100,5% (including a placement commission of 0,50 per cent.), namely AUD 2.010 per Denomination.
Amount repaid at the Maturity Date Investors are entitled to receive 100% of the amount invested in AUD (without Placement Fee), i.e. AUD 2.000 per Denomination, except in case bankruptcy or risk of bankruptcy of the Issuer or 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 2,65% annually, i.e. AUD 53,00 (gross) per Denomination, subject to a withholding tax of 30%, payable 1 February of each year, from 1 February 2019 up to and including the Maturity Date, except in case bankruptcy or risk of bankruptcy of the Issuer or the Guarantor or in case of Bail-in.
Taxes on stock market transactions On the basis of tax legislation applicable from 8 January 2018, the rate of the tax on stock market transactions (TOB) when selling before maturity date is equal to 0.12% (with a maximum of EUR 1.300).

Yield
The Gross Yield in AUD is 2,48% (including Placement Fee of 0,50% 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 30%) is 1,68% 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 2,000

Listing
No listing.
Publication of the product's value Investors can check the price of the Notes in their custody account or request it at any KBC branch.

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 (positive 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 in AUD (without Placement Fee) 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 Coupon and the Amount Invested. (the EUR/AUD exchange rate can be volatile during the life of the Notes);

(iii)liquidity risk – there is no 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; 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

(iv) ‘bail-in’ risk - In the event of bankruptcy or risk of bankruptcy of the KBC Bank Group (i.e. KBC Bank NV and its affiliates), 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.

Costs

Please take into account:

- an exchange rate commission at KBC Bank which amounts to 1.00% of the exchange rate valid on the relevant payment date;

- the placement fee of 0,50% per Denomination, paid by the investor (included in the Issue Price of 100,5% per Denomination);

- the commission of maximum 1.00% per Denomination, to be annually received by KBC Bank NV for the distribution and promotion of the Notes; and- any other fees and charges mentioned in the Product Info Sheet.

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

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 ).

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

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