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

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

  • Note in foreign currency. As a result, the investors bear an exchange rate risk as described below under “Risks”
  • Annual fixed gross coupon of 1.80% per year, i.e. NOK 180.00 (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

From Monday, 26 June (9 a.m.) through Friday, 28 July 2017 (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

5 years

Maturity Date

4 august 2022

Issue Price

101% (including a placement commission of 1 per cent.), namely NOK 10,100.00 per Denomination.

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 NOK (without Placement Fee), i.e. NOK 10,000.00 per Denomination, except in case bankruptcy or risk of bankruptcy of the Issuer or the Guarantor or in case of Bail-in.
 

Investment objective

An investment in this product can be attractive as a re‐investment in Norwegian Krone.

Coupon

On a yearly basis and per Denomination, you are entitled to a coupon of 1.80% annually, i.e. NOK180.00 (gross) per Denomination, payable on 4 August  of each year, from 4 August 2018 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 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 1300.

Yield

The Gross Yield in NOK is 1.59% (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 NOK after withholding tax (currently 30%) is 1.05% 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

NOK 10,000

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. 

Rating van de Garant

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.

Risk factors

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 NOK (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 NOK, an investment in the Notes represents a risk relating to the conversion of NOK into EUR with respect to Coupon and the Amount Invested. (the NOK/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 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.

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 klachten@kbc.be (tel. 0800 62 084) and/or ombudsman@minfin.be.

 

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