Express bonds
An investment that picks up speed
Express bonds offer the chance of interesting interest rates in sideways trending markets. There is a chance of early annual redemption at 100 % of the nominal amount. On the last valuation date you benefit from a risk buffer (= final-redemption-barrier), even if the underlying asset should have fallen during the term. There is no capital guarantee. If the underlying quotes below the barrier on the final valuation date, capital losses will occur.
Express bonds in subscription
How does an express bond work?
Payoff profiles
Express bonds
Advantages
- Chance of an interesting annual return if the underlying is at or above the coupon barrier.
- Annual fixed-interest income with with express bonds with fixed coupons
- If the closing price of the underlying reaches or exceeds the early redemption barrier on the annual valuation date, there will be an early redemption at 100.00 % of the nominal amount.
- Investors benefit from a risk buffer compared to a direct investment in the underlying.
- Coupon payments are made in arrears for memory express bonds if the closing price of the underlying on the valuation date is above the coupon barrier.
Risks to be considered
- Investors bear the credit risk of the issuer and of the guarantor, i.e., the risk of changes in creditworthiness or insolvency..
- During the term, the price does not fluctuate 1:1 with the underlying, and premature sales may lead to capital losses.
- The return is limited with the possible coupon payments, even if the underlying has a better performance.
- If the closing price of the underlying on the final valuation date is below the final redemption barrier, a capital loss will occur.
- This security is not covered by any deposit insurance scheme. Investors are exposed to the risk that the issuer and the guarantor may not be able to meet its obligations in case of insolvency (bankruptcy, over-indebtedness) or an official order (bail-in regime). There is a possibility of a total loss of the capital invested.
Important legal information
This information is a promotional communication and no investment advice.
These financial products are offered to the public in Austria. The legal basis are the Final Terms and the (base) prospectus plus supplements, if any, which are therefore binding exclusively. According to various EU Regulations and the Austrian Capital Markets Act [KMG] a prospectus is required for these products: see the Prospectus Regulation (EU) 2017/1129 and Commission Delegated Regulations (EU) 2019/980 and (EU) 2019/979. The prospectus was prepared by the issuer and approved by the competent authority of the home Member State. However, this does not mean that the authority recommends the specific security. For certain so-called "packaged investment products" within the meaning of the PRIIPs Regulation a key information document ("KID") is also required by law. That document describes the main features of the relevant financial product.
Apart from the described rewards, investing in securities may also involve risks. We are not allowed to offer, sell, resell or deliver this financial product directly or indirectly to natural or legal persons who are domiciled or whose registered office is in a country in which this is prohibited by law. In such a case we are not allowed to offer any product information either. This particularly applies to the USA and "US Persons" as defined in Regulation S under the Securities Act of 1933 as amended.
Please note. You are about to acquire a product that may be difficult to understand. Before you make an investment decision, we recommend that you read the full information on the relevant financial product:
- the (base) prospectus
- the Final Terms
- addenda, if any, and
- the key information document (KID) if any
These documents can be obtained free of charge from here:
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- Regarding bonds of Erste Bank Oesterreich:
Erste Bank der oesterreichischen Sparkassen AG, Am Belvedere 1, 1100 Vienna
You may also retrieve the documents ectronically:
https://erstebank.at/prospekte/srp or https://www.sparkasse.at/erstebank/rechtliche-dokumente/erste-bank-emissionen
Please also note our client information:
Our analyses and conclusions are of a general nature and do not take into account the personal characteristics of our investors in terms of experience and knowledge, the investment objective, the financial situation, the financial loss-bearing capacity or risk tolerance.
Conflicts of interest:
Erste Bank Oesterreich is affiliated with Erste Group Bank AG and the Austrian savings banks (Sparkassen).
Date: September 2025