Bonds

The focus is on the coupon

Bonds

The focus is on the coupon

Bonds are interesting if you want to invest your money in the medium or in the long term. The amount of interest payments depends on the term of the bond, the credit rating of the issuer and the current interest rate market situation. Bonds can be included in the securities portfolio for strategic reasons to ensure a balanced investment strategy.

Bonds in subscription

How do bonds work?

The focus is on the coupon

Advantages

  • Regular interest payments (except for zero-coupon bonds)
  • Large selection of diverse bonds from different issuers
  • Repayment at 100% of the nominal amount at maturity by the issuer
  • Investments in EUR and foreign currencies are possible

Risks to be considered

  • Price fluctuations possible during the term - premature sale can lead to capital losses
  • Investors bear the credit risk of the issuer, i.e., the risk of changes in creditworthiness or insolvency
  • The security is not covered by any deposit insurance scheme. Investors are exposed to the risk that the issuer may not be able to meet its obligations in the event of insolvency (illiquidity, over-indebtedness) or an official order (bail-in regime). There is a possibility of a total loss of the capital invested
  • Exchange rate risk for bonds denominated in foreign currency

Important legal information

This information is provided for promotional purposes and is not an investment recommendation. This promotional information is no investment advice, and neither has it been prepared in accordance with the legal requirements for the promotion of independent investment research nor is it subject to any prohibition on dealing after dissemination of investment research.

These financial products are offered to the public in Austria. The final terms and the (base-) prospectus as well as any supplements form the relevant legal basis for this and are thus exclusively binding. Various regulations of the European Union and the Austrian Capital Market Act require a prospectus for these financial products: see the Prospectus Regulation (EU) 2017/1129 and the Commission Delegated Regulations (EU) 2019/980 and (EU) 2019/979. The issuer has prepared this prospectus and it has been approved by the competent authority of the home Member State. However, this does not mean that this authority also recommends the specific security. The law also requires a key information document ('KID') for specific products that are called 'packaged investment products' and defined in the PRIIPs Regulation. This key information document provides information on the main features of the financial product to which it relates.

Risk disclosure

Please note: Investments in securities present not only the opportunities described in the information provided but also risks. Future performance cannot reliably be predicted based on past market performance. We are not permitted, neither directly or indirectly, to offer, sell, resell or deliver these financial products to natural and/or legal persons (entities) who have their place of residence or, as the case may be, their registered office in a country where this is prohibited by the law. In such cases we are not allowed to offer any production information either. This applies especially to the US and to "U.S. persons" as defined by Regulation S under the Securities Act 1933 as amended.

N.B.: You are just about to buy a product that can be difficult to understand. Before deciding whether to invest, we recommend you read all the information available on the financial product you wish to acquire:

  • (base) prospectus
  • the final terms and conditions
  • any follow-on addenda and, where necessary,
  • the key information document (KID)

These documents are available for free at:
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Electronic versions of the documents are available as well:

 

Please also make sure to read our customer information sheet:

The analyses we make and the conclusions we draw are of a general nature and do not take into consideration the individual investor's personal circumstances like experience and knowledge, investment objective, financial situation, loss-absorbing capacity or risk tolerance.

Conflicts of interest: 
Erste Group Bank AG is affiliated with Erste Bank and Sparkassen.

Erste Group Bank AG has an interest to issue their own financial instruments. The interest exists especially in the issue of subordinated bonds which with the possible statutory loss sharing obligation can lead to an increase of equity ratio of Erste Group Bank AG.


Date: July 2024

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