Corporate Bond VGP NV

Corporate Bond VGP NV

  • Fixed annual coupon
  • 7-year term

Investing in bonds entails risks. By subscribing to the Bonds, investors give a loan to the Issuer, which undertakes to pay interest on an annual basis and to repay the principal at maturity. Investors risk losing some or all of their invested capital. Before subscribing to the Bond, investors should read the product info sheet and the prospectus, paying special attention to the risk factors. (see Part I ‘Summary’ on page 17 and next and under Part II ‘Risk factors’ on page 27 and following of the  Prospectus)

From Friday, 23 June 2017 (9 a.m.) through Friday, 30 June 2017 (5.30 p.m.) (unless the subscription period is closed early), you can subscribe to a new corporate bond (the “Bond”) of VGP NV (BE) (“the Issuer”).

Main features

Term: 7 years
Maturity Date: 6 July 2024
Issue Price:

101%, namely EUR 1.010 per Denomination.

All rates and charges on securities transactions applying at KBC Bank NV can be found at the Schedule of rates and charges.

Placement fee: 1,875%,  where 1% is paid by the client,  included in the Issue Price, and 0,875% is paid by the  issuer
Amount repaid at the Maturity Date: Investors are entitled to receive 100.00% of the amount invested in EUR, i.e. EUR 1,000.00 per Denomination, except in case of bankruptcy or default of the Issuer.
Investment objective: With an investment in this product one expects on a diversification of the investment portfolios.
Annual Coupon: 3.25%  payable annually on 6 July each year, from July 2018 until the Maturity Date. The annual Coupon will be adjusted in the event of a step-up or step-down as a result of a change of control and/or depending on whether a financial commitment is achieved. For the detailed description of the mechanisms we refer to Part IV Conditions of the Bonds of the Prospectus. The amounts set out in this section, are annualized and before deduction of withholding tax (currently at 30%).
Yield :

The Gross Yield is 3.089% (before withholding tax), if the Bond is held until the Maturity Date. You can find more information under “Gross Yield to Maturity” in the Product info sheet.

The Yield after withholding tax (currently 30%) is 2.12% if the Bond is held until the Maturity Date. You can find more information under “Yield to Maturity after withholding tax” in the Product info sheet.

Denomination: EUR 1.000
Listing: Regulated market of Euronext Brussels.
Governing law: Belgian law.
Warning:
  • These Bonds are obligations of a holding company which implies that its obligations are structurally subordinated to any security indemnified debt or debt maturing earlier of the Issuer, and are effective structurally subordinated to the substantial debt of the Joint Venture, the subsidiaries of the Joint Venture and the members of the Group (other than the issuer).
  • Because there is a possibility that the issuer of a bond may default, it is important for potential investor to have a decent spread in their investments with regard to instruments and counterparties.

Learn more

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

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