Product Overview

Public Sector Covered Bonds constitute direct, unconditional and unsubordinated obligations of the Issuer.

Public Sector Covered Bonds are secured by a separated pool of cover assets comprising, among certain other eligible items, loan claims against, or debt securities issued or guaranteed by, Austrian government entities or other Member States of the European Economic Area or Switzerland or their regional governments and government entities, or by claims benefiting from a guarantee granted by one of these government entities. The cover assets for Public Sector Covered Bonds are listed in the relevant register which is kept by the Issuer pursuant to the Austrian Act on Mortgage Banks (Hypothekenbankgesetz).

Public Sector Covered Bonds are eligible investments for minors (Mündelgeld) pursuant to section 230b No 3 of the Austrian General Civil Code.

Senior Notes without Non-preferred senior Status

These Notes constitute direct, unconditional, unsecured and unsubordinated obligations and shall rank
(a) pari passu (i) among themselves and (ii) with all other unsecured and unsubordinated obligations; and
(b) senior to Senior Notes with Non-preferred senior Status

Senior Notes with Non-preferred senior Status

These  Notes constitute direct, unconditional, unsecured and unsubordinated obligations, provided that in the event of normal insolvency proceedings (Konkursverfahren) of Erste Group, claims on the principal amount of the Notes shall rank

(a) junior to all other unsecured and unsubordinated instruments or obligations which do not fall or are not expressed to fall within the category of obligations described in § 131(3) no. 1 to no. 3 BaSAG; and

(b) pari passu (i) among themselves; and (ii) obligations which fall within the category of obligations described in § 131(3) no. 1 to no. 3 BaSAG; and

(c) senior to all claims under (i) ordinary shares and other Common Equity Tier 1 instruments pursuant to Article 28 CRR; (ii) Additional Tier 1 instruments pursuant to Article 52 CRR; (iii) Tier 2 instruments pursuant to Article 63 CRR; and (iv) all other subordinated instruments or obligations of Erste Group.

The Subordinated Notes constitute Tier 2 instruments pursuant to Article 63 CRR and have a minimum maturity of five years and constitute direct,  unsecured and subordinated obligations. These Notes rank pari passu among themselves.

In the event of insolvency or liquidation of Erste Group, the payment obligations will rank in right of payment after unsubordinated creditors (including Non-Preferred Senior Instruments) and subordinated creditors whose claims rank pursuant to their terms, or are expressed to rank senior to the Notes and will rank in priority to the claims of shareholders, holders of (other) Common Equity Tier 1 instruments pursuant to Article 28 CRR as well as holders of Additional Tier 1 instruments pursuant to Article 52 CRR and all other subordinated obligations of Erste Group which are expressed by their terms to rank junior to the Notes.

In December 2013 Erste Group Bank AG securitized a part of the auto lease portfolio of EBV Leasing GmbH, a subsidiary of EGB. Edelweiss 2013-1 was the first ABS transaction for EGB since Edelweiss I in 2003 with a portfolio size of EUR 266.9 mn and structured in 4 tranches with ratings from AAA to BB+.