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UniCredit Bank issuing bond linked to crude oil

UniCredit Bank has begun offering its clients the new PETROL 2012 structured bond, which is tied to price development for crude oil contracts. The new bond, which matures in November 2012, offers a maximum return in the area of 24%, which is more than 7% annually. The subscription period for the bond ends on 4 November 2009.

Clients are not required to pay any entry or exit fees. Gains from the new bond may be exempt from income taxes for individuals if the bond is held for longer than 6 months and is sold prior to maturity. Clients may sell back the PETROL 2012 structured bond at any UniCredit Bank branch for its current market price and do so even before its maturity date.

"The level of risk for the Petrol 2012 structured bond, which guarantees at least 100% return of the invested amount, is very low, however it permits one to achieve an attractive return, which a classic deposit does not presently offer," remarked Jaroslav Žahourek, Head of UniCredit Bank's Retail Division.

*The final maximum possible investment return will be established on the issuance date (i.e. 4 November 2009).

As Mr Žahourek further observed, crude oil has already for several decades been the most significant and most traded strategic raw material, and its price fell to its level from 2003 due to the drop in demand caused by the economic crisis. "We assume that with the recovery of the world economy demand will rise, and especially from dynamically growing China. Pro-growth factors could also include political instability in Iran and, according to analysts, the fact that investments have been insufficient into exploration for new oilfields and especially into drilling capacity," Mr Žahourek added.

Additional, detailed information about the PETROL 2012 structured bond is available on UniCredit Bank's website: http://www.unicreditbank.cz.

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