MOVE-Bond Offers Minimum Interest and Interest Bonus
The MOVE-Bond launched by WestLB AG in cooperation with Bayerische Landesbank, HSH Nordbank AG, Landesbank Hessen-Thüringen, Landesbank Baden-Württemberg and Norddeutsche Landesbank offers investors a guaranteed minimum interest over the complete term of the investment. The subscription period starts today and will end on August 25, 2003.
Subscribers to the MOVE-Bond invest in a capital-guaranteed bond. The actual annual interest will depend on the year-on-year performance of the underlying stock basket (American International Group, American Express Company, Aventis S.A., Barclays plc, Citigroup Inc., Dell Computer Corporation, Freddie Mac, General Electric Corporation, Honda Motor Co. Ltd., Microsoft Corporation, Novartis AG, Pfizer Inc., Procter & Gamble Company, Royal Dutch Petroleum Company, Sony Corporation, Takeda Chemical Industries Ltd., Telecom Italia Mobile S.p.A., Total S.A., Unilever N.V. and Volkswagen AG), with the performance of each individual share taken into account. The relevant factor is the relative negative and positive annual performance of each individual share, which, multiplied with a participation rate, determines the interest for the current interest period. The MOVE-Bond consists of two components. The first component guarantees the capital and the minimum interest in the form of a fixed-income paper. The second component guarantees the interest bonus built into the product.
If the lowest absolute annual percentage performance (i.e. negative or positive) of the shares in the basket is below 1.75% on the observation dates, the investor will earn the minimum interest rate of 1.75% p.a. for the respective interest period. If the lowest absolute annual percentage performance of the shares in the basket exceeds 1.75% p.a., this performance multiplied by the participation rate will be paid out to the investor for the respective interest period. Observation dates are Aug. 26, 2004, Aug. 26, 2005, Aug. 25, 2006, Aug. 24, 2007 and Aug. 26, 2008. The maturity date of the MOVE-Bond is September 3, 2008. The bond will be listed on the Düsseldorf and Frankfurt Stock Exchanges and the Stuttgart EUWAX ("Freiverkehr").