KBC IFIMA S.A. (LUX) 7 year Note in EUR with a variable interest rate

KBC IFIMA S.A. (LUX) 7 year Note in EUR with a variable interest rate

  • Structured Note in Euro
  • Annual coupon, linked to the EUR CMS rate on 1 year (i.e. the interbank reference rate for a swap in EUR of a fixed rate against a variable 3-month rate with a tenor of 1 year), except in the event of 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

From Thursday, 3 August 2017 (9 a.m.) through Friday, 25 August 2017 (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 7 years
Maturity Date 1 September 2024
Issue Price

100.50% (including a placement commission of 0.50 per cent.), i.e. EUR 1,005.00 per Denomination. 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 (without Placement Fee), i.e. EUR 1,000.00 per Denomination, except in case 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 of the EUR CMS rate on 1 year.

Annually a variable Coupon equal to the EUR CMS rate on 1 year, with a minimum of 0.50%(gross) and a maximum of 4.00% (gross). The probability that a maximum coupon will be paid, is very limited. Moreover, chances are virtually non-existent for the successive variable coupons that the maximum coupon amount will be paid. The Coupon is payable annually on 1 September each year, from 1 September 2018 until the Maturity Date. The amounts set out in this section, are annualized and before deduction of withholding tax (currently at 30%).

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 1,300.
Yield For more information concerning the working of the product, returns and examples of the working of the product, we refer to the section “More information on the EUR CMS rate on 1 year” from page 5 of the Product info sheet.
Denomination EUR 1.000
Listing Regulated market of the Luxembourg stock exchange.
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 (stabiele vooruitzichten)
S&P A (stabiele vooruitzichten)
Fitch A- (positieve vooruitzichten)

Deze ratings zijn louter indicatief en vormen geen aanbeveling tot kopen, verkopen of aanhouden van de Notes van de Emittent. Meer informatie over deze ratings is te vinden op: www.kbc.com onder de tab ‘investor relations’ - kredietratings

Risk factors

Moody’s     A1 (stable outlook)

S&P             A (stable outlook)

Fitch           A (stable 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.

·        (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 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 (“bail-in”).

The risk factors are described in the Base Prospectus on pages 30 et seq., and in the Product info sheet on pages 3-4.

This product (the “Notes”) is a structured 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 rates and the CMS rates). 

If you have any complaints please contact complaints@kbc.be, tel. 0800 62 084 and/or ombudsman@minfin.be.



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