Landesbanks Issue MOVE Bond
In cooperation with Bayerische Landesbank, HSH Nordbank AG, Landesbank Hessen-Thüringen, Landesbank Baden-Württemberg and Norddeutsche Landesbank, WestLB AG is issuing the MOVE bond with 100% principal guaranteed. The five-year issue has a nominal volume of € 250 million and a minimum coupon of 1.75%. In addition, an interest bonus will be paid on an annual basis which is linked to the annual performance of 20 basket stocks (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). The inital offer price is 103.00% and the minimum trading volume is € 1,000 or a multiple thereof. Closing is September 3, 2003.
If the lowest absolute annual percentage performance (either negative or positive) among the 20 basket stocks at the relevant observation date, multiplied by the participation rate, is less than 1.75%, the minimum interest rate of 1.75% p.a. will be paid for the current interest period. If the lowest absolute annual percentage performance (either negative or positive) among the 20 basket stocks at the relevant observation date, multiplied by the participation rate, is higher than 1.75%, this performance, multiplied by the participation rate, will be paid for the current period. The investor participates 50% in the lowest annual percentage performance.