3 year KBC IFIMA S.A. (LUX) Bond in USD with a fixed interest rate
- This is the issue of a bond in US Dollar (USD), which bears an exchange rate risk in terms of the conversion of the amounts from USD to EUR.
- Annual coupon of 2.30% gross (in USD), i.e.
USD 46 (gross), except in the case of bankruptcy or the risk of
bankruptcy of the issuer or 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 1 April 2019 (9 a.m.) through 3 May 2019 (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||9 May 2019
9 May 2022
||100.75%, i.e. USD 2,015 per denomination.
|Amount repaid on the maturity date
||100.00% of the invested amount in USD (excluding the placement fee), i.e. USD 2,000 per denomination, except in the event of bankruptcy or risk of bankruptcy of the issuer or the guarantor.
An investment in this product may be an attractive re-investment in USD.
||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.
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.
Moody’s: A1 (positive 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 or 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”);
(ii) The foreign exchange rate risk - An investment in the bonds denominated in USD represents a risk relating to the conversion of USD into EUR with respect to interest amounts and to the redemption of the investment amount on the maturity date. In the case of conversion into EUR, investors may lose some of the interest and/or the amount invested, as a result of the depreciation of the USD against EUR during the term of the bond. This risk is more pronounced for investors who do not have a USD account and could have their payments automatically converted into EUR at the exchange rate on the relevant payment dates;
(iii) The liquidity risk - The bonds are not listed on a regulated market. It is possible that investors will not be able to sell their bonds before the maturity date. If it is still possible to sell the bonds, they will be sold at the price determined by KBC Bank SA which can act as a counterparty. KBC Bank SA does not commit itself to systematically buying back the bonds;
(iv) The risk on fluctuations of the price of the product (market risk) – The price of the bonds can fluctuate due to various factors such as interest rate movements and market mobility. Investors seeking to sell their bonds before the maturity date will have to sell them at a price (excluding trading fees, taxes on stock transactions and possible taxes), which can be determined by KBC Bank SA in its capacity as counterparty. This could result in a gain or loss on the capital invested in USD (excluding the placement fee), i.e. USD 2,000 per denomination.
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:
(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. 0.75% if the bonds areheld to the maturity date.
b. Other running charges borne by theinvestor: up to 1.25% per year, i.e. up to 3.75% if the obligations are held to thematurity date.
1 Unsubordinated bonds are bonds that in case of bankruptcy
or liquidation of the undertaking are refunded after the preferred
creditors but before the holders of subordinated bonds and the
- Product info sheet
- Final terms (English), including a summary of the bonds (English) (1 April 2019)
- Base prospectus for EMTN Programme (21 June 2018)
- Summary of the base prospectus (Dutch) (21 June 2018)
- Supplement (English) (12 September 2018)
- Supplement (English) (27 September 2018)
- Supplement (English) (6 March 2019)