KBC Bank and CBC Banque issue one-year savings certificates. (Advertisement)
Responding to market trends and to offer their customers an even wider range of savings and investment products, KBC, KBC Brussels and CBC will issue from 16/09/2024 to 29/09/2024 a one-year savings certificate with an annual gross coupon of 3,10%, after deducting withholding tax of 30% a net return of 2,17% remains.
A savings certificate is a debt instrument issued by a bank with a predetermined maturity and fixed interest rate. So you lend money to the bank that undertakes to repay 100% at maturity, including the payment of an annual coupon.
Please find below the main features of these savings certificates (for more information, we refer to the base prospectus dated 06/08/2024, Final Terms, the summary of the issue, the Product Sheet and Information on Deposit Protection) .
Savings certificate KBC and KBC Brussels:
- Minimum subscription amount: 500 euros and above in multiples of 1 euro.
- Issue price: 100% of the nominal value.
- Payment date: starting date of the savings certificate.
- Starting date (the date on which the interest of the savings certificate begins to accrue): 30/09/2024.
- One-time gross coupon of 3,10%, which is net 2,17% after deduction of 30% withholding tax.
- This coupon is paid at final maturity.
- Final maturity date: 30/09/2025. This is a maturity of 1 year
- Redemption price: 100% of nominal value.
- Estimated issue amount: 880 million euros.
- Securities under Belgian law.
- ISIN code: BE6355831031
Savings certificate CBC:
- Minimum subscription amount: 500 euros and above in multiples of 1 euro.
- Issue price: 100% of the nominal value.
- Payment date: starting date of the savings certificate.
- Starting date (the date on which the interest of the savings certificate begins to accrue): 30/09/2024.
- One-time gross coupon of 3,10%, which is net 2,17% after deduction of 30% withholding tax.
- This coupon is paid at final maturity.
- Final maturity date: 30/09/2025. This is a maturity of 1 year
- Redemption price: 100% of nominal value.
- Estimated issue amount: 120 million euros.
- Securities under Belgian law.
- ISIN code: BE6355832047
Costs
There are no entry or exit fees if you keep the savings certificate until maturity. There is also no custody fee at KBC Bank/CBC Banque.
If you withdraw your savings certificate before the final maturity date and KBC Bank/CBC Banque allows it, you pay 0.75% of the outstanding capital, but this cost can change at any time.
Risks
Solvency risk
This product is guaranteed under certain conditions by the Belgian deposit protection scheme. This protection takes effect if KBC Bank/CBC Banque could no longer repay the requested deposits and currently amounts to a maximum of 100 000 euros per person and per bank for all deposits held with KBC Bank/CBC Banque(including savings certificates) together, subject to certain conditions. You can obtain the brochure "Protection of deposits, life insurance and financial instruments in Belgium" free of charge from your KBC/CBC branch or consult it at:
www.cbc.be/protectiondesdepots (only available in French)
In the event of KBC's/CBC’s insolvency (e.g. bankruptcy), you risk losing the amount of your deposits (including savings certificates) in excess of 100,000 euros or that amount may be reduced or converted into shares (bail- in). There is also a risk of total or partial loss of capital and coupons or capital gains, or of conversion of securities into shares, in case of restructuring of the issuer or guarantor, imposed by the competent supervisory authority.
Fluctuation of the value of the savings certificate
When you do sell your savings certificate before the maturity date, you need to bear in mind that the price may then fluctuate under the influence of market volatility and interest rates and you also pay exit fees.
Liquidity risk
If you want to sell your savings certificate before the maturity date, your bank can buy them back (note: the bank is not obliged to do so). The value you receive will depend on the interest rates on the market at that time and the costs charged by the bank. Hence, it is not certain that you will recover your initial capital. A savings certificate is not listed on the stock exchange.
Inflation risk
Sustained price increases can lead to a loss in value of the deposited amount.
Taxation
Income is subject to a Belgian withholding tax of (currently) 30% on the gross interest amount. Some investors are eligible for an exemption under certain conditions. This taxation applies to private investors subject to Belgian income tax. The tax treatment depends on the individual circumstances of the investor and may change in the future. The tax on stock exchange transactions is not applicable since the savings certificates will not be listed on any stock exchange.
Complaints
Your bank branch is the first point of contact for your complaints. If you cannot reach an agreement you can contact KBC Complaint Management, Brusselsesteenweg 100, 3000 Leuven, klachten@kbc.be , tel. 016 43 25 94; CBC Complaint Management, Avenue Albert 1er 60, 5000 Namur, gestiondesplaintes@cbc.be .
If you do not reach an appropriate solution with your bank, you can contact Ombudsfin vzw, North Gate II, Koning Albert II-laan 8 bus 2, 1000 Brussels, ombudsman@ombudsfin.be , www.ombfin.be.
Further provisions
No essential saver information document is available for savings certificates.
The savings certificates are a product of KBC Bank NV Havenlaan 2, 1080 Brussels, Belgium. VAT BE 0462.920.226, RPR Brussels - FSMA 026256 A or of CBC Banque SA Avenue Albert Ier 60, 5000 Namur, Belgium. TVA BE 0403.211.380, RPM Liège division Namur FSMA 017588 A. Both are part of KBC Group.
Before investing, it is important that you read the following documents: Base Prospectus, Summary of Prospectus, Final Terms, Product Sheet and Information on Deposit Protection.