3 year KBC IFIMA S.A. (LUX) Bond in NZD with a fixed interest rate
- This is the issue of a New Zealand Dollar (NZD), which bears an exchange rate risk in terms of the conversion of the amounts from NZD to EUR.
- Annual coupon of 1,45% gross (in NZD), i.e. NZD 29 (gross), except in the case of bankruptcy or the risk of bankruptcy of the issuer and bankruptcy, the risk of bankruptcy or bail-in (dissolution) of the guarantor.
- Held free of charge in your KBC Custody Account.
- This product (the "bonds") 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 (especially investors who are familiar with interest rates and exchange rates).
From 6 January 2020 (9 a.m.) through 31 January 2020 (4 p.m.) (unless the subscription period is closed early), you can subscribe to a non-subordinated1 Note issued by KBC IFIMA S.A. (LUX) ("the issuer"), guaranteed by KBC Bank SA ("the guarantor").
|Issue date||6 February 2020|
|Maturity date||6 February 2023|
|Issue price||100.75%, i.e. NZD 2,015,00 per denomination.|
|Amount repaid on the maturity date||100.00% of the invested amount in NZD (excluding the placement fee), i.e. NZD 2,000 per denomination, except in the event of bankruptcy or risk of bankruptcy of the issuer and bankruptcy, the risk of bankruptcy or bail-in (dissolution) of the guarantor.
|Investment objective||An investment in this product allows investors to diversify the currencies of their bond portfolio.|
|Withholding tax||The income resulting from the bonds, which is collected in Belgium, is subject to withholding tax of 30,00% on the gross amount. The withholding tax constitutes the final tax for Belgian individuals, which means that any income from the bonds would not have to be declared in the annual tax return. The above mentioned taxation applies to the average non-professional client-physical person residing in Belgium. The tax treatment depends on your individual circumstances and may change in the future.|
|Taxes on stock market transactions||On the basis of current tax legislation, the rate of the tax on stock market transactions (TOB) when selling before maturity date is equal to 0.12% (with a maximum charge of EUR 1,300).|
|Publication of the product’s value||Investors can check the price of the bonds in their custody account or request it at any KBC branch.|
|Governing law||The bonds, 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+ (stable outlook).
These ratings are purely indicative and do not constitute a recommendation to buy, sell or hold the bonds issued by the Issuer. For more details on these ratings, see: the ‘credit ratings’ section of the ‘investor relations’ page on www.kbc.com.
|Most important risks||
Investors are requested to inspect all the risks inherent in the product and in particular:
(i) The credit risk - Repayment and interest payments depend on the solvency of KBC IFIMA S.A. (the issuer) and KBC Bank SA (the guarantor). In the event of bankruptcy or risk of bankruptcy of the issuer and bankruptcy, the risk of bankruptcy or bail-in (dissolution) of the guarantor, investors could lose part or all of their invested amount and the interest amounts and these bonds 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 on pages 33 et seq. of the Base Prospectus and on page 3-4 of the product info sheet.
Please take into account:
- Charges included in the issue price:
(i) Entry costs: 0.75% borne by the investor;
(ii) Running charges:
a. Distribution fee borne by the investor: 0.25% per year, i.e. 1,25% % if the bonds are held to the maturity date.
- Exchange rate fee: at KBC Bank SA, for each exchange transaction, an exchange rate fee is charged that is in line with 1.00% of the exchange rate in force on the relevant payment date. Depending on the arrangement that exists between investors and their KBC branch this exchange rate fee may be deviated from;