WestLB TOP8-Bond: Up To 8% Interest and Capital Guarantee
WestLB AG, Düsseldorf/Münster, is issuing a TOP8-Bond offering a capital guarantee and a variable interest rate of up to 8% p.a. The annual interest payment is linked to the development of the underlying basket of 20 stocks (Amgen Inc., BMW AG, Canon Inc., E.ON AG, France Telecom S.A., Freddie Mac, Hewlett-Packard Company, ING Groep N.V., Intel Corporation, Lloyds TSB Group plc., Microsoft Corporation, Newmont Mining Corporation, Oracle Corporation, Pfizer Inc., Sanofi-Synthelabo S.A., Siemens AG, Total S.A., Toyota Motor Corporation, Viacom Inc., Vodafone Group plc.).
With the TOP8-Bond the subscriber invests in a capital-guaranteed bond, the annual interest payment of which is linked to the development of 20 stocks. If at the valuation dates none of the basket stocks trades at or below its reference value, which is 25% below the initial value, the maximum interest rate of 8% p.a. will be paid. For each stock which at least on one valuation date trades at or below its reference value, the interest rate is reduced for the current interest period by one percentage point. Interest will be calculated for the period from (and including) October 24th of each year to (but excluding) October 24th of the following year. The valuation date is the first day of each calendar month of the relevant interest period during which the relevant stock is traded on its home stock exchange. Irrespective of the stock price development, the bonds will be repaid at par (€ 1,000) on October 24, 2008 (maturity date).
The reference value of each stock contained in the basket was determined on October 20, 2003 on the basis of the respective closing prices. With a total volume of € 100 million, the TOP8-Bonds mature on October 24, 2008. They are available in denominations of € 1,000 and have an initial offer price of 102%. The certificates will be listed on the Düsseldorf, Frankfurt and Stuttgart (EUWAX) Stock Exchanges ("Freiverkehr"). Payment date is October 24, 2003.