The Kingdom of Belgium - State Notes

The Kingdom of Belgium - State Notes

  • Annual coupon
  • Kingdom of Belgium: high-grade issuer (Aa3/AA rating)
  • Term to maturity of 10 years

From Thursday, 24 May 2018 through Friday, 1 June 2018 (4 p.m.) (included), you can subscribe to the new State Notes issued by the Kingdom of Belgium (the "Issuer").

Main features

ISIN code: BE3871277070
Term: 10 years
Issue Date: 4 June 2018
Maturity Date: 4 June 2028
Issue price: 100.00%
Amount repaid at the Maturity Date: 100%
Yield:
  • Yearly coupon of 0,75% (gross) per denomination, payable annually, on 4 June starting on 4 June 2019 until and including the maturity date.
  • Gross yield of 0,75% based on an issue price of 100.00% and going from a reimbursement of 100.00% at the maturity date. This means a net yield of 0,525% after reduction of the withholding tax of 30,00%.
Taxes on stock market transactions On the basis of the 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 of EUR 1.300).
Denomination: 100 euro and multiples of 100 euro
Issuer rating:

Moody’s Aa3 (negative outlook)

Standard & Poors AA (stable outlook)

These ratings are indicative and do not constitute a recommendation to buy, sell or hold the Notes issued by the Issuer.

Charges:
  • Trading fee: When selling the bonds for the maturity date, a trading fee of up to 0,85% (with a minimum of EUR 25) will be due.
  • Distribution fee: KBC Bank receives from the Belgian State a fee of 1.15% on its subscribed amount and a variable fee that shall not exceed 0.20% of the subscribed amount.
  • Schedule of rates and charges: All rates and charges applying at KBC Bank NV can be found at https://www.kbc.be/retail/en/redirects/tarieven-overzicht-vergoedingen-2018.html.

 

Listing: The State Notes will be listed on NYSE Euronext Brussels and the possibility of trading the State Notes on the regulated market of NYSE Euronext Brussels will be requested (www.euronext.com).
Governing law: The State Notes are governed by Belgian law
Most important risks:
  • Credit risk: Repayment and interest payments depend on the solvency of Issuer. It is believed that the Kingdom of Belgium currently has ample financial resources to comply with the financial commitments entered into.
  • Liquidity risk: The secondary market for this issue depends on the general liquidity of the international financial markets. There is no guarantee whatsoever that an active market will develop for the trading of the State Notes.
  • Risk of fluctuations of the price of the product (Market risk): The market price of the State Notes can fluctuate due to various factors such as the rating of the Issuer and interest rate movements. Investors seeking to sell their State Notes before maturity will have to sell them at the market price. This could result in a capital gain or loss being made on the nominal value of the State Notes.

This product (the ‘State Note’) is a debt instrument intended for investors who have the necessary knowledge and experience to assess the benefits and risks of an investment in this type of product, based on their financial situation, to estimate the advantages and risks of an investment in this type of instrument (more in particular, investors who are familiar with interest rates).

* There is no prospectus available.

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

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