Obbligazione RaiffeisenBank 5.169% ( XS0253262025 ) in EUR

Emittente RaiffeisenBank
Prezzo di mercato refresh price now   100 EUR  ⇌ 
Paese  Austria
Codice isin  XS0253262025 ( in EUR )
Tasso d'interesse 5.169% per anno ( pagato 1 volta l'anno)
Scadenza perpetue



Prospetto opuscolo dell'obbligazione Raiffeisen XS0253262025 en EUR 5.169%, scadenza perpetue


Importo minimo 50 000 EUR
Importo totale 500 000 000 EUR
Coupon successivo 16/11/2025 ( In 20 giorni )
Descrizione dettagliata Raiffeisen è un gruppo bancario cooperativo austriaco con una presenza internazionale significativa, operante nel settore finanziario con un'ampia gamma di servizi per privati e aziende.

The Obbligazione issued by RaiffeisenBank ( Austria ) , in EUR, with the ISIN code XS0253262025, pays a coupon of 5.169% per year.
The coupons are paid 1 time per year and the Obbligazione maturity is perpetue







RZB Finance (Jersey) IV Limited
(Incorporated with limited liability under the laws of Jersey)
EUR 500,000,000 Non-cumulative Subordinated Perpetual Callable Step-up Fixed to
Floating Rate Capital Notes having the benefit of a support agreement entered
into with Raiffeisen Zentralbank Österreich AG
Issue Price: 100%
The EUR 500,000,000 Non-cumulative Subordinated Perpetual Callable Step-up Fixed to Floating Rate Capital Notes
(the "Capital Notes") are proposed to be issued by RZB Finance (Jersey) IV Limited (the "Issuer") on 16 May 2006 (the
"Closing Date"). The holders of the Capital Notes ("Noteholders") will have the benefit of a support agreement (the
"Support Agreement") entered into between the Issuer and Raiffeisen Zentralbank Österreich AG ("RZB" or the
"Support Agreement Provider"). Subject to the limitations described in the "Terms and Conditions of the Capital Notes",
the Capital Notes will bear non-cumulative interest: (i) from (and including) 16 May 2006 to (but excluding) 16 May
2016 (the "Reset Date") at a fixed rate of 5.169 per cent. per annum payable annually in arrear with the first interest
payment being made on 16 May 2007 and 16 May in each year thereafter; and (ii) from (and including) the Reset Date
at a rate of 1.95 per cent. per annum above three month EURIBOR (see the definition of Reference Rate in the "Terms
and Conditions of the Capital Notes") payable quarterly in arrear on 16 August, 16 November, 16 February and 16 May
in each year, commencing on 16 August 2016 (each an "Interest Payment Date").
The Capital Notes are limited recourse obligations of the Issuer (as further detailed in "Terms and Conditions of the
Capital Notes").
The Capital Notes do not have a maturity and are not redeemable at any time at the option of the Noteholders. The
Capital Notes are redeemable at the option of the Issuer, subject to the prior consent of RZB (which shall grant such
consent only after either replacement of the aggregate principal amount of the Capital Notes so redeemed by the issue
of other capital of at least equivalent quality (Kapital gleicher oder besserer Qualität) or after the Austrian Financial
Market Supervisory Authority (the "Finanzmarktaufsichtsbehörde" or "FMA") has determined that after repayment
RZB and the group of credit institutions ("Kreditinstitutsgruppe") to which RZB belongs have sufficient own funds
required for adequate risk coverage), in whole but not in part, at EUR 50,000 per Capital Note plus accrued and unpaid
interest for the then current Interest Period (as defined in the "Terms and Conditions of the Capital Notes") on 16 May
2016 or any Interest Payment Date falling thereafter and, for taxation reasons or regulatory reasons, in whole but not in
part at any time, subject as described in the "Terms and Conditions of the Capital Notes". In the event of the liquidation,
dissolution or winding-up of the Issuer or RZB, Noteholders will be entitled to receive for each Capital Note a
liquidation preference of EUR 50,000 plus any accrued and unpaid interest for the then current Interest Period to the
date of payment, subject as described in the "Terms and Conditions of the Capital Notes".
This Prospectus has been approved by the FMA which is a competent authority for the purpose of Directive 2003/71/EC
(the "Prospectus Directive"). Since this Prospectus relates to the admission to trading on a regulated market of the
Capital Notes, being non-equity securities having a denomination of EUR 50,000, no summary of this Prospectus is
included herein in accordance with section 7(2) Austrian Capital Markets Act ("Kapitalmarktgesetz" "or KMG").
Application will be made to list the Capital Notes on the Geregelter Freiverkehr ("Second Regulated Market") of the
Wiener Börse AG (the "Vienna Stock Exchange"). This Prospectus constitutes a prospectus for the purposes of the
Prospectus Directive and the applicable Austrian listing and issuing rules.
The Capital Notes will be in bearer form and in the denomination of EUR 50,000 each. The Capital Notes will initially
be in the form of a temporary global note (the "Temporary Global Note"), without interest coupons, which will be
deposited on or around 16 May 2006 (the "Closing Date") with a common depositary for Euroclear Bank, S.A./N.V. as
operator of the Euroclear System and Clearstream Banking, société anonyme, Luxembourg. The Temporary Global Note
will be exchangeable, in whole or in part, for interests in a permanent global note (the "Permanent Global Note"),
without interest coupons, not earlier than 40 days after the Closing Date upon certification as to non-U.S. beneficial
ownership. Interest Payments in respect of the Capital Notes cannot be collected without such certification of non-U.S.
beneficial ownership. The Permanent Global Note will be exchangeable in certain limited circumstances in whole, but
not in part, for Capital Notes in definitive form in the denomination of EUR 50,000 each without interest coupons.
BNP PARIBAS
UBS Investment Bank
The date of this Prospectus is 12 May 2006.


NOTICE TO INVESTORS
A copy of this Prospectus has been delivered to the Jersey Registrar of Companies in accordance with Article
5 of the Companies (General Provisions) (Jersey) Order 2002, and he has given, and has not withdrawn, his
consent to its circulation.
The Jersey Financial Services Commission has given, and has not withdrawn, its consent under Article 4 of
the Control of Borrowing (Jersey) Order 1958 to the issue by the Issuer of the Capital Notes. The Jersey
Financial Services Commission is protected by the Control of Borrowing (Jersey) Law 1947, as amended,
against liability arising from the discharge of its functions under that law.
It must be understood that in giving these consents, neither the Jersey Registrar of Companies nor the Jersey
Financial Services Commission takes any responsibility for the financial soundness of the Issuer or for the
correctness of any statements made, or opinions expressed, with regard to it.
The Issuer confirms that, to the best of its knowledge after having taken all reasonable care to ensure that Annex XIII 1
such is the case, the information contained in this Prospectus with regard to the Issuer and the Capital Notes
is in accordance with the facts and contains no omission likely to affect its import. The Issuer accepts
responsibility accordingly.
RZB confirms that, to the best of its knowledge and having taken all reasonable care to ensure that such is Annex XI 1
the case, the information contained in this Prospectus with regard to the Issuer, RZB and the RZB Group (as
defined in the Terms and Conditions of the Capital Notes) and the Capital Notes is in accordance with the
facts and contains no omission likely to affect its import. RZB accepts responsibility accordingly.
No person has been authorised to give information or to make any representation other than those contained
in this document and, if given or made, such information or representation must not be relied on as having
been authorised by the Issuer, RZB, BNP Paribas or UBS Limited.
Neither the delivery of this Prospectus nor the offering, sale or delivery of any Capital Notes shall in any
circumstances create any implication that there has been no adverse change, or any event reasonably likely
to involve any adverse change, in the condition (financial or otherwise) of the Issuer or RZB since the date
of this Prospectus.
Every significant new factor, material mistake or inaccuracy relating to the information included in this
Prospectus which is capable of affecting the assessment of the Capital Notes and which arises or is noted
between the date hereof and the date when trading on the Second Regulated Market of the Vienna Stock
Exchange begins, will be included and published in a supplement to this Prospectus, pursuant to section 6
KMG.
Prospective investors should inform themselves as to the legal requirements and tax consequences within the
countries of their residence and domicile for the acquisition, holding or disposition of Capital Notes and any
foreign exchange restrictions that might be relevant to them. This Prospectus does not constitute an offer of,
or an invitation by or on behalf of, the Issuer, RZB, BNP Paribas or UBS Limited to subscribe for or purchase
any of the Capital Notes.
Investors should satisfy themselves that they understand all the risks associated with making investments in
the nature of the Capital Notes. It should be remembered that the price of securities and the income from
them can go down as well as up. If a prospective investor is in any doubt whatsoever as to the risks involved
in investing in the Capital Notes, he or she should consult his or her professional advisers.
The distribution of this document and the offering of the Capital Notes in certain jurisdictions may be
restricted by law. Persons into whose possession this document comes are required by the Issuer, RZB, BNP
Paribas and UBS Limited to inform themselves about, and to observe any such restrictions.
Capital Notes may not be offered or sold, directly or indirectly, and this Prospectus may not be distributed
in any jurisdiction, except in accordance with the legal requirements applicable in that jurisdiction. In
particular, the Capital Notes have not been and will not be registered under the United States Securities Act
2


of 1933 as amended (the "Securities Act"). Subject to certain exceptions, the Capital Notes may not be
offered, sold or delivered within the United States or to U.S. persons.
A further description of certain restrictions on the offering and sale of the Capital Notes and on the
distribution of this document is given under "Subscription and Sale" above.
The Capital Notes are only suitable for financially sophisticated investors who are capable of evaluating the
risks involved in investing in the Capital Notes.
Unless otherwise specified or the context requires, references to a "Member State" are references to a
member state of the European Economic Area, references to "euro", "Euro" and "EUR" are to the currency
introduced at the start of the third stage of European Economic and Monetary Union pursuant to the Treaty
establishing the European Community, as amended from time to time.
In connection with this issue, BNP Paribas (the "Stabilising Manager") (or any duly appointed person
acting for the Stabilising Manager) may over-allot (provided that the aggregate principal amount of the
Capital Notes allotted does not exceed 105% of the aggregate principal amount of the Capital Notes) or
effect transactions which stabilise or maintain the market price of the Capital Notes at a level higher than
that which might otherwise prevail for a limited period. However, there is no obligation on the Stabilising
Manager (or any agent of the Stabilising Manager) to do this. Such stabilising may begin on or after the
date on which adequate disclosure of the terms of the Capital Notes is made, and, if commenced, may be
discontinued at any time and must be brought to an end after a limited period. Such stabilisation shall be
in compliance with all applicable laws and will in any event be discontinued no later than the earlier of 30
days after the issue date of the relevant Capital Notes and 60 days after the allotment date of the relevant
Capital Notes.
3


CONTENTS
PAGE
NOTICE TO INVESTORS......................................................................................................................
2
1.
GENERAL DESCRIPTION OF THE ISSUE..............................................................................
7
2.
RISK FACTORS ..........................................................................................................................
15
2.1
THE ISSUER ....................................................................................................................
15
2.2
RZB ....................................................................................................................................
15
2.2.1
Market risk ............................................................................................................
15
2.2.2
Dependence upon funding sources ......................................................................
15
2.2.3
Credit risk..............................................................................................................
15
2.2.4
Equity risk ............................................................................................................
16
2.2.5
Liquidity risk ........................................................................................................
16
2.2.6
Operational risk ....................................................................................................
16
2.2.7
Dependence upon having adequate risk-bearing capacity and upon risk
control and successful risk management ..............................................................
16
2.2.8
Dependence upon having sufficient own funds and making adequate
provisions for risks ................................................................................................
16
2.2.9
The future development of the banking sector and regulation thereof / Basel II
16
2.2.10 Dependence upon the business and economic environment in which RZB
and the RZB Group operate, including in particular the development of
financial markets and the political situation in Central and Eastern Europe........
17
2.3
THE CAPITAL NOTES ....................................................................................................
17
2.3.1
Risks Relating to the Market Generally................................................................
17
2.3.2
Risks Relating to the Capital Notes Generally ....................................................
18
3.
RZB FINANCE (JERSEY) IV LIMITED (THE ISSUER) ........................................................
21
3.1
PERSONS RESPONSIBLE ..............................................................................................
21
3.2
STATUTORY AUDITORS ................................................................................................
21
3.3
RISK FACTORS ................................................................................................................
21
3.4
INFORMATION ABOUT THE ISSUER ..........................................................................
21
3.4.1 History and development ........................................................................................
21
3.4.2 Legal and Commercial Name..................................................................................
21
3.4.3 Place of Registration ..............................................................................................
21
3.4.4 Date of Incorporation ..............................................................................................
21
3.4.5 Domicile and Legal Form ......................................................................................
21
3.4.6 Share Capital ..........................................................................................................
22
3.4.7 Material Recent Events ..........................................................................................
22
3.5
BUSINESS OVERVIEW ..................................................................................................
22
3.6
ORGANISATIONAL STRUCTURE ................................................................................
22
3.7
TREND INFORMATION ..................................................................................................
22
3.8
PROFIT FORECASTS OR ESTIMATES ........................................................................
22
3.9
ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES ......................
23
3.10
MAJOR SHAREHOLDERS..............................................................................................
23
3.11
FINANCIAL INFORMATION..........................................................................................
24
4


3.11.1 Historical financial information ............................................................................
24
3.11.2 Financial statements and other financial information ..........................................
34
3.11.3 Audit......................................................................................................................
34
3.11.4 Legal and arbitration proceedings ........................................................................
34
3.11.5 Significant changes ..............................................................................................
35
3.12
MATERIAL CONTRACTS ..............................................................................................
35
3.13
THIRD PARTY INFORMATION/STATEMENTS BY EXPERTS/DECLARATIONS
OF ANY INTEREST ........................................................................................................
35
3.14
DOCUMENTS ON DISPLAY ..........................................................................................
35
4.
RAIFFEISEN ZENTRALBANK ÖSTERREICH AKTIENGESELLSCHAFT (RZB) ............
36
4.1
PERSONS RESPONSIBLE ..............................................................................................
36
4.2
STATUTORY AUDITORS ................................................................................................
36
4.3
RISK FACTORS ................................................................................................................
36
4.4
INFORMATION ABOUT RZB ........................................................................................
36
4.4.1
History and development ......................................................................................
36
4.4.2
Legal and Commercial Name ..............................................................................
39
4.4.3
Place of Registration ............................................................................................
39
4.4.4
Date of Incorporation ............................................................................................
39
4.4.5
Domicile and Legal Form ....................................................................................
39
4.4.6
Recent Material Events ........................................................................................
40
4.4.7
Ratings ..................................................................................................................
41
4.5
BUSINESS OVERVIEW ..................................................................................................
47
4.5.1
Principal activities ................................................................................................
47
4.5.2
Significant new products ......................................................................................
50
4.5.3
Principal Markets ..................................................................................................
50
4.5.4
Competitive Position ............................................................................................
51
4.6
ORGANISATIONAL STRUCTURE ................................................................................
52
4.6.1
Related party dependencies ..................................................................................
52
4.6.2
Profit before tax of RZB Group ............................................................................
52
4.7
TREND INFORMATION ..................................................................................................
53
4.8
PROFIT FORECASTS OR ESTIMATES ........................................................................
53
4.9
ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES ......................
53
4.9.1
Managing Board....................................................................................................
53
4.9.2
Supervisory Board ................................................................................................
54
4.9.3
Members of the Länderkuratorium (federal advisory board) ..............................
59
4.9.4
Other......................................................................................................................
61
4.9.5
Conflicts of interest ..............................................................................................
61
4.10
MAJOR SHAREHOLDERS..............................................................................................
61
4.11
FINANCIAL INFORMATION..........................................................................................
62
4.11.1 Historical Financial Information incorporated by reference ................................
62
4.11.2 Financial Statements and other information concerning RZB's assets and
liabilities, financial position and profits and losses ..............................................
63
4.12
MATERIAL CONTRACTS ..............................................................................................
64
4.13
THIRD PARTY INFORMATION/ STATEMENTS BY EXPERTS/ DECLARATIONS OF
ANY INTEREST ..............................................................................................................
65
5


4.14
DOCUMENTS ON DISPLAY ..........................................................................................
65
5.
DESCRIPTION OF THE CAPITAL NOTES ..............................................................................
66
5.1
PERSONS RESPONSIBLE ..............................................................................................
66
5.2
RISK FACTORS ................................................................................................................
66
5.3
KEY INFORMATION ......................................................................................................
66
5.4
INFORMATION CONCERNING THE CAPITAL NOTES ............................................
66
5.4.1 Total amount of the Capital Notes admitted to trading ....................................................
66
5.4.2
Description of the Capital Notes ..........................................................................
66
5.4.3
Legislation under which the Capital Notes were created ....................................
66
5.4.4
Form of the Capital Notes ....................................................................................
66
5.4.5
Currency and denomination ..................................................................................
66
5.4.6
Rankings of the Capital Notes ..............................................................................
66
5.4.7
Rights and restrictions attached to the Capital Notes ..........................................
66
5.4.8 Nominal interest rate and interest payment ......................................................................
67
5.4.9
Maturity ................................................................................................................
68
5.4.10 Yield ......................................................................................................................
68
5.4.11 Representation of security holders ........................................................................
68
5.4.12 Approvals ..............................................................................................................
68
5.4.13 Issue date of the Capital Notes ............................................................................
68
5.4.14 Transfer of the Capital Notes ................................................................................
68
5.5
ADMISSION TO TRADING/ DEALING ARRANGEMENTS ......................................
68
5.6
EXPENSES OF THE ADMISSION TO TRADING ........................................................
68
5.7
ADDITIONAL INFORMATION ......................................................................................
68
5.7.1
Advisors ................................................................................................................
68
5.7.2
Auditors' report ....................................................................................................
68
5.7.3
Experts ..................................................................................................................
68
5.7.4
Third party sources................................................................................................
68
5.7.5
Ratings ..................................................................................................................
68
5.7.6
Use of proceeds ....................................................................................................
68
6.
TERMS AND CONDITIONS OF THE CAPITAL NOTES........................................................
70
7.
SUMMARY OF PROVISIONS RELATING TO THE CAPITAL NOTES IN GLOBAL FORM
83
8.
DESCRIPTION OF THE SUPPORT AGREEMENT ..................................................................
85
8.1
Nature of the Support Agreement ......................................................................................
85
8.2
Scope of the Support Agreement ......................................................................................
85
8.3
Information to be disclosed about RZB ............................................................................
85
8.4
Documents on display ........................................................................................................
85
9.
SUPPORT AGREEMENT ............................................................................................................
86
10.
TAXATION ................................................................................................................................
91
10.1
Taxation in Jersey ..............................................................................................................
91
10.2
Taxation in Austria ............................................................................................................
92
10.3
Taxation in Germany..........................................................................................................
94
10.4
EU Savings Directive ........................................................................................................
96
11.
SUBSCRIPTION AND SALE......................................................................................................
98
6


1. GENERAL DESCRIPTION OF THE ISSUE
The following summary is qualified in its entirety by the more detailed information and financial statements
included elsewhere in this Prospectus.
Issuer
RZB Finance (Jersey) IV Limited which is a 100% indirectly
owned subsidiary of RZB. It was incorporated in Jersey on
31 March 2006 for the sole purpose of the issue of Capital
Notes under this Prospectus.
Support Agreement Provider
RZB
Fiscal Agent
BNP Paribas Securities Services (Luxembourg Branch)
Paying Agents
RZB and BNP Paribas Securities Services (Luxembourg
Branch)
Calculation Agent
BNP Paribas Securities Services (Luxembourg Branch)
Issue Size
EUR 500,000,000
Issue Details
EUR 500,000,000 Non-cumulative Subordinated Perpetual
Callable Step-up Fixed to Floating Rate Capital Notes
Closing Date
16 May 2006 or such other date as may be agreed by the
Issuer and BNP Paribas and UBS Limited (the "Joint Lead
Managers") to issue the Capital Notes
Form and Denomination
The Capital Notes will be in bearer form and in the
denomination of EUR 50,000 each
Limited Recourse Obligation
The Capital Notes are limited recourse obligations of the
Issuer. Principal and interest on the Capital Notes will be
payable solely from distributions and redemption payments
received by the Issuer deriving from the Investments and any
amounts received by the Issuer under the Support
Agreement.
Investments
The proceeds of the issue will be transferred as
Supplementary Capital to RZB (Ergänzungskapital (section
23(1) No. 5 and (7) BWG, in accordance with section 24(2)
No. 5 and 6 and section 45(4) BWG)) and will be used to
increase the RZB Group's own funds. After payment of fees,
commissions and expenses, the net proceeds of the issue
which will be available to RZB are expected to amount to
approximately EUR 496,000,000.
Maturity
The Capital Notes do not have a maturity date and are not
redeemable at any time at the option of the Noteholders.
Interest
Subject to the limitations described in the Terms and
Conditions of the Capital Notes, the Capital Notes will bear
non-cumulative interest: (i) from (and including) 16 May
2006 to (but excluding) 16 May 2016 (the "Reset Date") at a
fixed rate of 5.169 per cent. per annum payable annually in
arrears with the first interest payment being made on 16 May
2007 and on 16 May in each year thereafter; and (ii) from
(and including) the Reset Date at a rate of 1.95 per cent. per
annum above three month EURIBOR (see the definition of
7


Reference Rate in the Terms and Conditions of the Capital
Notes) payable quarterly in arrears on 16 August, 16
November, 16 February and 16 May in each year,
commencing on 16 August 2016 (each an "Interest Payment
Date").
Non-Cumulative
Interest Payments on the Capital Notes will be non-
cumulative and will be deemed to accrue on a day by day
basis.
If no interest falls to be paid by the Issuer in respect of the
Capital Notes in any Interest Period then the right of
Noteholders to receive interest (or any proportion thereof) in
respect of such Interest Period will be extinguished and the
Issuer will have no obligation to pay the interest accrued for
such Interest Period or to pay any interest thereon, whether
or not interest on the Capital Notes is paid for any future
Interest Period.
Link to Distributable Profits
Interest on the Capital Notes will, subject to the Optional
Non-Payment Right described below, be paid by the Issuer
out of funds legally available therefor; provided that Interest
Payments will only be made on any Interest Payment Date to
the extent that:
(a)
the Issuer has Distributable Funds for the Interest
Period ending on the respective Interest Payment
Date; and/or
(b)
the Support Agreement Provider has in accordance
with section 24(2) No. 6(d) BWG an amount of
Distributable Profits at least equal to (a) the aggregate
amount of such Interest Payments payable on the
relevant Interest Payment Date and (b) payments
made during the period commencing on the date that
Distributable Profits were determined by the
Supervisory Board of the Support Agreement Provider
immediately preceding such Interest Payment Date
and ending on the relevant Interest Payment Date, in
respect of interest on the Capital Notes and dividends
or other distributions or payments on Parity Securities,
if any.
However the Issuer may, at its sole discretion, elect not to
make Interest Payments on the Capital Notes with a view to
ensuring the continuity of RZB's activities without a
weakening of its financial structure (the "Optional Non-
Payment Right").
Subject to Condition 4(h) of the Terms and Conditions of the
Capital Notes and notwithstanding the restrictions set out in
Condition 4(f) interest will be paid on the Capital Notes in
the following circumstances:
(a)
if the Support Agreement Provider or any SPV (being
a special purpose vehicle subsidiary of RZB formed
for the purpose of issuing securities, as defined in the
8


Conditions) declares or pays any dividends or makes
any other payment or other distribution on any Interest
Parity Securities (which includes any securities issued
(i) by RZB or (ii) by the Issuer or any other SPV with
the benefit of a guarantee or support agreement from
RZB, in each case where the securities rank pari passu
as to payment of dividends, interest or distributions
with RZB's obligations under the Support Agreement
and contain an Optional Non-Payment Right or
equivalent). If the dividend or other payment or
distribution on such Interest Parity Securities was in
the full stated amount payable on such Interest Parity
Securities, Interest Payments will be made in full (in
the period to but excluding the Reset Date) on the
Interest Payment Date falling contemporaneously
with or immediately following the date on which such
dividend or other payment or distribution was
declared or made on such Interest Parity Securities or
(in the period from the Reset Date) on the four Interest
Payment Dates falling contemporaneously with or
immediately following the date on which such
dividend or other payment or distribution was
declared or made on such Interest Parity Securities . If
the dividend or other payment or distribution on such
Interest Parity Securities was only a partial payment
of the amount so owing, the Interest Payments on the
Capital Notes will be reduced proportionally;
(b)
if the Support Agreement Provider or any of the SPVs
declares or pays any dividend or makes any other
payment or distribution on any Junior Securities,
interest will be paid on the Capital Notes (in the
period to but excluding the Reset Date) on the Interest
Payment Date falling contemporaneously with or
immediately following the date on which such
dividend was declared or other payment made or (in
the period from the Reset Date) on the four Interest
Payment Dates falling contemporaneously with or
immediately following the date on which such
dividend or other payment or distribution was
declared or made;
(c)
if the Support Agreement Provider or any of the SPVs
redeems, repurchases or otherwise acquires any Parity
Securities or Junior Securities for any consideration
except by conversion into or exchange for Junior
Securities, the Issuer will make Interest Payments on
the Capital Notes in full (in the period to but excluding
the Reset Date) on the Interest Payment Date falling
contemporaneously with or immediately following the
date on which such redemption, repurchase or other
acquisition occurred or (in the period from the Reset
Date) on the four Interest Payment Dates falling
contemporaneously with or immediately following the
9


date on which such redemption, repurchase or other
acquisition occurred;
provided that no payment obligation shall arise under
paragraphs (a) ­ (c) above to the extent that the relevant SPV
which declares or pays any dividend or makes any other
payment or distribution makes such payment or distribution
out of its own distributable profits or makes an Excess
Distributable Funds Payment (as defined in the Terms and
Conditions of the Capital Notes).
When, by reason of any limitation described above interest is
not paid in full on the Capital Notes and any Parity
Securities, all interest payable upon the Capital Notes and
any such Parity Securities will be payable pro rata in the
proportion that the amounts available for payment on the
Capital Notes and any such Parity Securities on the due date
of payment shall bear to the full amount that would have
been payable on the Capital Notes and such Parity Securities
but for such limitation and any claims in respect of the
difference between the full amount and the amount so
payable shall be thereupon extinguished. If interest is not
paid in full in accordance with the Terms and Conditions of
the Capital Notes, the Noteholders will be notified in
accordance with Condition 13 of the Terms and Conditions
of the Capital Notes.
Regulatory Limitations
Even if Distributable Funds of the Issuer and Distributable
Profits of the Support Agreement Provider are sufficient on a
particular Interest Payment Date, to the extent that, (i) in
accordance with applicable Austrian law, the Support
Agreement Provider would be limited in making payments
on preference shares or preferred securities or capital notes
issued by it ranking pari passu as to participation in profits
with the Support Agreement Provider's obligations under the
Support Agreement or (ii) on such date there is in effect an
order of the FMA (or any other relevant regulatory authority)
prohibiting the Support Agreement Provider from making
any distribution of profits, the Issuer shall not be required to
make any Interest Payments on any such Interest Payment
Date.
Support Agreement
The Issuer and the Noteholders will have the benefit of the
Support Agreement entered into between the Issuer and
RZB.
Each Noteholder shall be entitled severally to enforce the
obligations against RZB or the Issuer.
The Support Agreement is intended to provide for interest,
redemption and liquidation rights equivalent to those which
would attach to the Capital Notes if issued directly by RZB
and to oblige RZB to make funds available to the Issuer to
meet its payment obligations under the Capital Notes.
RZB's obligations under the Support Agreement constitute
unsecured obligations of RZB and rank and will at all times
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