Prospectus dated 21 June 2007
VERBUND-International Finance B.V.
(a private limited liability company (besloten vennootschap met beperkte aansprakelijkheid) under the laws of the Netherlands)
guaranteed by
Österreichische Elektrizitätswirtschafts-Aktiengesellschaft
(a company organised as a stock corporation (Aktiengesellschaft) under the laws of the Republic of Austria)
Issue of
EUR 500,000,000
5.00 per cent. Bonds of 2007/2014
Issue Price: 99.487 per cent.
Application has been made to the Commission de Surveillance du Secteur Financier (the "CSSF"), in its capacity as the competent authority under the Luxembourg "Act on Securities Prospectuses" (loi relative aux prospectus pour valeurs mobilières) (the "Luxembourg Act") for its approval of this prospectus (the "Prospectus"). In order to list the Bonds, inter alia, on the Vienna Stock Exchange, the Issuer intends to apply for a notification pursuant to Article 19 of the Luxembourg Act into the Republic of Austria ("Austria").
Application has been made to list the Bonds on the official list of the Luxembourg Stock Exchange and to trade the Bonds on the regulated market of the Luxembourg Stock Exchange which is a regulated market within the meaning of Directive 2003/71/EC (the "Prospectus Directive") and which is considered and recognised as a "regulated market" for purposes of Directive 2004/39/EC. Furthermore, application has been made for admission to listing of the Bonds on the Semi-Official Market (Geregelter Freiverkehr) of the Vienna Stock Exchange.
This Prospectus constitutes a prospectus for purposes of Article 5 of the Prospectus Directive and the Luxembourg Act.
Barclays Capital Citi
CALYON Corporate and BNP PARIBAS Erste Bank Investment Bank
Raiffeisen Zentralbank Österreich The Royal Bank of Scotland UniCredit Group (BA-CA) Aktiengesellschaft
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- 2 - TABLE OF CONTENTS
IMPORTANT NOTICE ...... 5
SUMMARY OF THE PROSPECTUS ...... 7
Summary of the Information concerning the Bonds...... 8
Summary of the Description of the Issuer...... 10
Summary of the Description of the Guarantor and Verbund Group...... 11
Summary of the Risk Factors...... 12
Summary of the Risks relating to the Bonds ...... 12
Summary of the Risks relating to the Issuer...... 12
Summary of the Risks relating to the Guarantor and Verbund Group...... 13
RISK FACTORS ...... 14
Risks relating to the Bonds ...... 14
Risks relating to the Issuer ...... 16
Risks relating to the Guarantor and Verbund Group ...... 17
GENERAL INFORMATION...... 21
Responsibility ...... 21
Key information ...... 21
Information concerning the Bonds...... 21
Description of certain Key Rights related to the Bonds and the Guarantee...... 23
Fiscal Agent ...... 23
Listing Agent and Paying Agent in Luxembourg, Paying Agent in Austria...... 24
Listing and Trading Information...... 24
Applicable Law, Place of Performance and Jurisdiction...... 24
Underwriting and Sale...... 24
Additional Information...... 24
Incorporation by Reference...... 25
Documents on Display...... 27
- 3 - TAXATION...... 28
SELLING RESTRICTIONS ...... 35
TERMS AND CONDITIONS OF THE BONDS...... 38
ANLEIHEBEDINGUNGEN ...... 48
GUARANTEE AND NEGATIVE PLEDGE ...... 59
DESCRIPTION OF THE ISSUER...... 63
DESCRIPTION OF THE GUARANTOR AND VERBUND GROUP...... 68
ADDRESS LIST...... 77
- 4 -
IMPORTANT NOTICE
General
This Prospectus should be read and understood in conjunction with the documents incorporated by reference herein.
This Prospectus may only be used for the purpose for which it has been published. The distribution of this Prospectus and the offering, sale and delivery of the Bonds in certain jurisdictions may be restricted by law. The publication and distribution of this Prospectus constitute neither an offer nor an invitation to submit an offer to persons in jurisdictions in which such an offer or such an invitation to submit offers are not permitted, or to persons to whom making such an offer or such an invitation to submit offers is prohibited by law.
Persons into whose possession this Prospectus comes are required to inform themselves about and observe any such restrictions. For a description of restrictions applicable in the United States of America, the European Economic Area, the United Kingdom and the Netherlands (see "Selling Restrictions").
In particular, the Bonds have not been and will not be registered under the United States Securities Act of 1933, as amended, and are subject to tax law requirements of the United States of America; subject to certain exceptions, the Bonds may not be offered, sold or delivered within the United States of America or to U.S. persons.
Exclusiveness
No person is authorised to provide any information or make any representations whatsoever in connection with the issue of the Bonds that deviate from those contained in this Prospectus. If such other information is nonetheless provided or other representations are made, these should not be considered authorised by VERBUND-International Finance B.V. (the "Company" or the "Issuer"), Österreichische Elektrizitätswirtschafts-Aktiengesellschaft (the "Guarantor" or together with its subsidiaries and affiliates consolidated in the relevant reporting period, "Verbund Group") or the Managers (as defined herein). Neither the distribution of this Prospectus, nor any sale in connection with the Prospectus, is intended under any circumstances to give the impression that the information contained in this document is accurate at anytime after the date of this Prospectus.
Forward-Looking Statements
If statements in this Prospectus are made either regarding future financial results and earnings performance or do not relate to historical facts and events such statements constitute forward-looking statements. When used in this documents such words as "believe", "aim", "plan", "intend", "assume", "may", "will", "anticipate", "should", "expect", "probably", "forecast", "estimate", "is of the opinion", "to the knowledge of" and similar expressions are intended to identify forward-looking statements. Such statements are based on assumptions which, although appropriate on the date of this Prospectus, may prove to be mistaken in the future. The risks and uncertainties which the Issuer and/ or the Guarantor see themselves facing in respect of their future development, and factor which influence the accuracy of such forward-looking statements, have been taken into account in the Prospectus. The factors include, inter alia, the factors discussed in the section "Risk Factors". The actual results may differ considerably from the results that have been considered in the forward-looking statements contained herein if such risks or uncertainties materialise, or the facts on which the forward-looking statements are based turn out to be incorrect.
In accordance with applicable provisions of law, the Issuer, the Guarantor and/or the Managers do not assume any obligation to update such forward-looking statements or adjust them to future events or developments.
- 5 -
Requirements
This Prospectus contains at the date hereof all information which, according to the nature of the Issuer, the Guarantor and the Bonds, respectively, is necessary to enable investors to make an informed assessment of the assets and liabilities, financial position, profits and losses, and prospects of the Issuer and the Guarantor and of the rights attached to the Bonds.
Significance of Delivery
Neither the delivery of this Prospectus nor the offering, sale or delivery of any Bond shall, in any circumstances, imply that there has been no adverse change in the financial situation of the Issuer or the Guarantor since the date hereof.
The delivery of this Prospectus or the offering, sale or delivery of the Bonds does not at any time imply that the information contained herein concerning the Issuer and the Guarantor is correct subsequent to the date hereof or that any other written information delivered in connection therewith is correct subsequent to the date indicated in the document containing the same.
Exclusion
This Prospectus does not constitute an offer or an invitation to subscribe for or purchase any Bonds and should not be considered as a recommendation by the Issuer, the Guarantor or the Managers that any recipient of this Prospectus should subscribe for or purchase any Bonds. Each recipient shall be deemed to have made its own investigation and appraisal of the financial condition and affairs as well as of the creditworthiness of the Issuer and of the Guarantor. This Prospectus may not be used for the purpose of an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not authorised or to any person to whom it is unlawful to make such offer or solicitation. This Prospectus is not intended to provide the basis of any credit or other evaluation.
- 6 - SUMMARY OF THE PROSPECTUS
The following summary constitutes a summary of the risks and characteristics relating to VERBUND-International Finance B.V. (the "Issuer"), Österreichische Elektrizitätswirtschafts-Aktiengesellschaft (the "Guarantor" or together with its subsidiaries and affiliates consolidated in the relevant reporting period, "Verbund Group"), as well as the Bonds being the subject matter of this Prospectus. This summary should be read as an introduction to this Prospectus, namely the following sections of the Prospectus.
(i) the "Information concerning the Bonds";
(ii) the "Description of the Issuer";
(iii) the "Description of the Guarantor and Verbund Group"; and
(iv) the "Risk Factors".
The following is merely a summary and is taken from, and is qualified by, the remainder of the Prospectus.
Possible investors should therefore be aware that:
(a) this section "Summary of the Prospectus" should be read as an introduction to the Prospectus;
(b) any decision to invest in the Bonds should be based on consideration of the Prospectus as a whole by the investor;
(c) where a claim relating to the information contained in this Prospectus is brought before a court, the plaintiff investor might have to bear the costs of translating this Prospectus before the legal proceedings are initiated; and
(d) civil liability attaches to those persons who have tabled this section "Summary of the Prospectus" including any translation thereof, but only if this section "Summary of the Prospectus" is misleading, inaccurate or inconsistent when read together with the other parts of this Prospectus.
- 7 - Summary of the Information concerning the Bonds
Issuer: ...... VERBUND-International Finance B.V.
Guarantor: ...... Österreichische Elektrizitätswirtschafts-Aktiengesellschaft
Managers:...... Barclays Bank PLC Citigroup Global Markets Limited
Bank Austria Creditanstalt AG BNP Paribas CALYON Erste Bank der oesterreichischen Sparkassen AG Raiffeisen Zentralbank Österreich Aktiengesellschaft The Royal Bank of Scotland plc
Aggregate Principal Amount:...... EUR 500,000,000
Specified Denomination:………... Denominations of EUR 50,000 and integral multiples of EUR 1,000 in excess thereof.
Minimum Trading Size:…………. There is a minimum trading size of EUR 50,000 and, above EUR 50,000, in increments of EUR 1,000.
Currency:...... Euro ("EUR")
Issue Date:...... 25 June 2007
Interest:...... 5.00 per cent. per annum from, and including, the Issue Date to, but excluding, the Maturity Date. Interest will be payable annually in arrear on each Interest Payment Date.
Interest Payment Date:...... 25 June in each year from, and including, the Issue Date to, but excluding, the Maturity Date.
Maturity Date:...... Unless previously redeemed in whole or in part or purchased and cancelled, the Bonds will be redeemed at their principal amount on 25 June 2014.
Day Count Fraction:...... Actual/Actual (ICMA)
Issue Price: ...... 99.487 per cent.
Form: ...... The Bonds will be issued in the format of a "new global note". The Bonds will initially be represented by a temporary global bearer bond (the "Temporary Global Bond"), without interest coupons, which will be deposited with a common safekeeper for both Euroclear Bank S.A./N.V. ("Euroclear") and Clearstream Banking, société anonyme, ("Clearstream Luxembourg" and, together with Euroclear, the "ICSDs") on or about 25 June 2007 (the "Issue Date"). The Bonds have been accepted for clearance through Euroclear and Clearstream Luxembourg. Except as otherwise described herein, interests in the Temporary Global Bond will be exchangeable for interests in a permanent global bond (the "Permanent Global Bond" and, each of the
- 8 - Temporary Global Bond and the Permanent Global Bond, a "Global Bond" and, together, the "Global Bonds") without interest coupons, not earlier than 40 days after the Issue Date upon certification as to non-U.S. beneficial ownership (subject to certain exceptions set forth in the certification).
The Bonds are intended to be held in a manner which will allow Eurosystem eligibility. This simply means that the Bonds are intended upon issue to be deposited with one of the ICSDs as common safekeeper and does not necessarily mean that the Bonds will be recognised as eligible collateral for Eurosystem monetary policy and intra-day credit operations by the Eurosystem either upon issue or at any or all times during their life. Such recognistion will depend upon satisfaction of the Eurosystem eligibility criteria.
The Bonds are being issued in bearer form and will not be represented by definitive Bonds.
Fiscal Agent: ...... Citibank, N.A. Agency and Trust 21st floor, Citigroup Centre Canada Square, Canary Wharf London E14 5LB England
Luxembourg Paying Agent:...... Dexia Banque International à Luxembourg 69, route d’Esch 2953 Luxembourg Luxembourg
Austrian Paying Agent:…………………………. Citibank International plc Austria Branch Am Kärntner Ring 11-13 1010 Vienna Austria
Luxembourg Listing Agent: ...... Dexia Banque International à Luxembourg 69, route d’Esch 2953 Luxembourg Luxembourg
Status:...... The Bonds constitute direct, unconditional, unsubordinated and unsecured obligations of the Issuer ranking pari passu among themselves and pari passu with all other unsecured and unsubordinated obligations of the Issuer, present and future, unless such obligations are accorded priority under mandatory provisions of statutory law.
Guarantee: ...... The payment of principal and interest together with all other sums payable by the Issuer in respect of the Bonds has been unconditionally and irrevocably guaranteed by the Guarantor. The Guarantee constitutes a direct, unconditional, unsubordinated and unsecured obligation of the Guarantor ranking pari passu with all other unsecured and unsubordinated obligations of the Guarantor, present and future, unless such obligations are accorded priority under mandatory provisions of statutory law.
- 9 - Negative Pledge: ...... The Issuer and the Guarantor have undertaken, as long as any Bonds are outstanding, not to create any security with regard to any Financial Indebtedness, without at the same time having the Bondholders share equally and rateably in such security.
Early Redemption: ...... If, as a result of any change in, or amendment to, the laws or regulations prevailing in the Netherlands (in the case of the Issuer) or in the Republic of Austria ("Austria") (in the case of the Guarantor), certain Withholding Taxes are levied on payments of principal or interest in respect of the Bonds and the Issuer or (if a payment were then due under the Guarantee) the Guarantor are obliged to pay Additional Amounts, the Issuer may redeem the Bonds in whole, but not in part.
Events of Default: ...... The Terms and Conditions of the Bonds provide for certain events of default entitling the Bondholders to demand an early redemption of the Bonds.
Cross-Default:…………………… The Terms and Conditions of the Bonds will provide for a cross-default.
Governing Law: ...... The Bonds, both as to form and content, are governed by German law.
Listing and Trading of the Bonds:. Application will be made to list the Bonds on the official list of the Luxembourg Stock Exchange and to trade the Bonds on the regulated market of the Luxembourg Stock Exchange. Furthermore, application will be made for admission to listing of the Bonds on the Semi-Official Market (Geregelter Freiverkehr) of the Vienna Stock Exchange.
Securities Codes:...... ISIN: XS0307453026 Common Code: 030745302 Other Securities Code: A0V0W5
Selling Restrictions:...... United States, United Kingdom, the Netherlands and European Economic Area, Reg S (Category 2), TEFRA D.
Summary of the "Description of the Issuer"
Statutory Auditors
Independent auditors of the Issuer for the fiscal years 2005 and 2006 are KPMG Audit, Rijnderslaan 10-20, Burg, 1185 MC Amsterdam, the Netherlands (the "Old Auditors"). The Old Auditors are a member of Nivra (Royal Dutch Institute for Registered Accountants).
For fiscal year 2007, the Issuer chose Deloitte Accountants B.V. Orlyplein 10, 1043 DP Amsterdam, P.O. Box 58110, 1040 HC Amsterdam, the Netherlands, (the "New Auditors") as independent auditor due to its best bid in a tender offer held in 2006 by the Guarantor. The auditors are a member of Nivra (Royal Dutch Institute for Registered Accountants).
History and Development
The Issuer is a Dutch private limited liability company in form of a besloten vennootschap met beperkte aansprakelijkheid incorporated under the laws of the Netherlands. The legal and commercial name of the Issuer is VERBUND-International Finance B.V. The Issuer is domiciled in the Netherlands with its registered office at Prins Bernhardplein 200, 1097 JB Amsterdam, the Netherlands, (telephone number: +31-(0)20-5214777). The Issuer is
- 10 - registered with the trade register of the Kamer van Koophandel (Chamber of Commerce) for Amsterdam under file number 34219608.
The Issuer was incorporated in Amsterdam, the Netherlands, on 11 January 2005 for an indefinite term with the company name VERBUND-International Finance B.V. to serve as a financing company for the purposes of Verbund Group.
Financial Information
The financial statements of the Issuer for the financial years 2005 and 2006, respectively, and the unaudited interim financial statements for the first quarter of 2007 as of 31 March 2007 have been incorporated by reference into this Prospectus as set out under "Incorporation by Reference" below.
Summary of the "Description of the Guarantor and Verbund Group"
Statutory Auditors
Independent auditors of the Österreichische Elektrizitätswirtschafts-Aktiengesellschaft (the "Guarantor", or together with its subsidiaries and affiliates consolidated in the relevant reporting period, the "Verbund Group") for the fiscal year 2005 are KPMG Alpen-Treuhand GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Porzellangasse 51, 1090 Vienna, Austria, registered with the Commercial Register (Firmenbuch) of the Commercial Court (Handelsgericht) of Vienna under FN 269874z and for the fiscal year 2006 are KPMG Wirtschaftsprüfungs- und Steuerberatungs GmbH, Porzellangasse 51, 1090 Vienna, Austria, registered with the Commercial Register (Firmenbuch) of the Commercial Court (Handelsgericht) of Vienna under FN 256865v (hereinafter together, the "Old Auditors"). The Old Auditors are members of the Chamber of Certified Accountants (Kammer der Wirtschaftstreuhänder) in Austria and of the Institute of Austrian Accountants (Institut Österreichischer Wirtschaftsprüfer).
For the fiscal year 2007, Deloitte Wirtschaftsprüfungs GmbH, Renngasse 1, Freyung, 1013 Vienna, Austria, registered with the Commercial Register (Firmenbuch) of the Commercial Court (Handelsgericht) of Vienna under FN 36059d (the "New Auditors"), was chosen as independent auditor due to its best bid in a tender offer held in 2006. The New Auditors are a member of the Chamber of Certified Accountants (Kammer der Wirtschaftstreuhänder) in Austria and of the Institute of Austrian Accountants (Institut Österreichischer Wirtschaftsprüfer).
History and Development
The Guarantor is incorporated as a joint-stock corporation (Aktiengesellschaft) under the laws of Austria. The Guarantor came into existence on 26 September 1947 in Austria for an indefinite term. The legal name of the Guarantor is Österreichische Elektrizitätswirtschafts-Aktiengesellschaft. The commercial name of the Guarantor is Verbund. The Guarantor is domiciled in Vienna, Austria, with registered office at Am Hof 6a, 1011 Vienna, Austria (telephone number: +43 (0)5 03 13 0). The Guarantor is registered with the Commercial Register (Firmenbuch) of the Commercial Court (Handelsgericht) of Vienna under FN 76023z.
When the Guarantor was founded in 1947 on the basis of the 2nd Nationalisation Act, the Austrian legislator gave the Guarantor the task of rebuilding and expanding the Austrian electricity system.
In 1988, the Guarantor was privatised to 49 per cent. within the framework of an initial public offering of its shares (IPO) and acquired the federal shares in special companies (such as Donaukraft, Tauernkraft and Draukraft). Austria’s joining of the European Union in 1995 marked the beginning of a new era for Verbund Group. It used the new opportunities, implemented reorganisation measures to modernise and internationalised its business activities. In 2001, the Austrian electricity market was fully deregulated.
- 11 -
Financial Information
The consolidated financial statements of the Guarantor for the financial years 2005 and 2006, respectively, and the unaudited consolidated interim financial statements for the first quarter of 2007 as of 31 March 2007 have been incorporated by reference into this Prospectus as set out under "Incorporation by Reference" below.
Summary of the Risk Factors
An investment in the Bonds involves certain risks relating to the Issuer, the Guarantor and the Bonds. While all of these risk factors are contingencies which may or may not occur, potential investors should be aware that (i) the ability of the Issuer and/or the Guarantor to fulfil its/their obligations under the Bonds may affect the risks associated with investing in the Bonds and/or (ii) a decrease in the market value of the Bonds whereby the market value falls short of the expectations (financial or otherwise) of a Bondholder upon making an investment in the Bonds may lead to a volatility in the Bonds.
Potential investors should consider three main categories of risks, "Risks Relating to the Bonds" and "Risks Relating to the Issuer", and "Risks Relating to the Guarantor and Verbund Group" a summary of which is set out below:
Summary of the Risks relating to the Bonds
Risk Factors relating to the Bonds comprise, inter alia, the following risks:
• The market value of the Bonds will decrease if the creditworthiness of the Issuer and/or the Guarantor worsens.
• The market value of the Bonds will decrease if the interest rate level for durations equal to the remaining term of the Bonds increases.
• There may not be a market for the Bonds.
• Risk of early redemption.
• Because the Global Bonds (as defined below) are held by or on behalf of Euroclear and Clearstream Luxembourg, investors will have to rely on their procedures for transfer, payment and communication with the Issuer.
• Suitability.
• Legality of Purchase.
• Taxation.
• Independent Review and Advice.
Summary of the Risks relating to the Issuer
Risk Factors relating to the Issuer comprise, inter alia, the following risks:
• Dependency from Verbund Group.
• Interest Rate Risk.
- 12 - • Operating Risks.
• Financial Risks.
• Liquidity Risks.
Summary of the Risks relating to the Guarantor and Verbund Group
Risk Factors relating to the Guarantor and Verbund Group comprise, inter alia, the following risks:
• General Risks and Risk Management.
• Specific Risks and related Risk Management comprise, inter alia, the following risks:
- Financial and Political Area.
- Credit Risk.
- Interest Rate Risk.
- Exchange Risk
• Identification of further Risks and related Risk Management comprise and address, inter alia, the following risks:
- Price risks from securities.
- Personnel risk.
- Lawsuit/legal risks/legal environment.
- Risks in connection with own production.
- Investment Risks.
- Fuel Risk/Risk of Loss.
- Counterparty credit risk.
- Price risk from electricity purchases.
- Risks in connection with Investment exposure.
- 13 -
RISK FACTORS
Before deciding to purchase the Bonds, investors should carefully review and consider the following risk factors and the other information contained in this Prospectus. The occurrence of one or more of the risks described below may have a material adverse effect on the cash flows, results of operations and financial condition of the Issuer and Verbund Group. Moreover, if any of these risks occurs the market value of the Bonds and the likelihood that the Issuer or the Guarantor will be in a position to fulfill the payment obligations under the Bonds and the Guarantee, respectively, may decrease, in which case the holders of the Bond could lose all or part of their investment. Investors should note that the risks discussed below may not prove to be exhaustive and therefore may not be the only risks to which the Issuer and Verbund Group is exposed. Additional risks and uncertainties, which are not currently known to the Issuer the Guarantor or which the Guarantor or the Issuer currently believe are immaterial, could likewise impair the business operations of the Issuer or Verbund Group and have a material adverse effect on their cash flows, results of operations, financial condition. The order in which the risks are presented does not reflect the likelihood of their occurrence or the magnitude of their potential impact on the cash flows, results of operations and financial condition of the Issuer or Verbund Group.
The information in this section "Risk Factors" includes risk factors relating to:
1. the Bonds.
2. the Issuer; and
3. the Guarantor and Verbund Group.
Risks relating to the Bonds
The market value of the Bonds may decrease if the creditworthiness of the Issuer and/or the Guarantor worsens.
If, e.g., because of the materialisation of any of the risks referred to above (see "Risks relating to the Issuer" and "Risks relating to the Guarantor and Verbund Group"), the likelihood that the Issuer or the Guarantor will be in a position to fully perform all obligations under the Bonds when they fall due decreases, the market value of the Bonds will suffer. In addition, even if the likelihood that the Issuer or the Guarantor will be in position to fully perform all obligations under the Bonds when they fall due actually has not decreased, market participants could nevertheless be of that opinion. Market participants may in particular be of such opinion if any of the rating agencies decreases the rating assigned to long term debt of the Issuer and/or the Guarantor. In addition the market participants' estimation of the creditworthiness of corporate debtors in general or debtors operating in the residential property business could adversely change.
If any of these risks occurs, third parties would only be willing to purchase Bonds for a lower price than before the materialisation of said risk. The market value of the Bonds may therefore decrease.
The market value of the Bonds may decrease if the interest rate level for durations equal to the remaining term of the Bonds increases.
If the interest rate level in general or particularly with regard to obligations of corporate undertakings or corporate undertakings with activities in the residential property business for durations equal to the remaining term of the Bonds increase, the market value of the Bonds may decrease. The longer the remaining term of a debt instrument, the stronger is its market value affected by changes of the interest rate level. As the term of the Bonds is seven years, changes of the interest rate level will have a strong impact on the market value of the Bonds. There are further factors which may affect the market value of the Bonds, including, but not limited to global or national economic factors and crises in the global or national financial sector.
- 14 -
There may not be a market for the Bonds.
Prior to the issue of the Bonds, there has been no public market for the Bonds. Application has been made for the Bonds to be listed on the official list of the Luxembourg Stock Exchange and for trading on the regulated market of the Luxembourg Stock Exchange and for admission to listing on the Semi-Official Market (Geregelter Freiverkehr) of the Vienna Stock Exchange. The issue of the Bonds is not conditional upon such listings being granted. No assurances can be given that such listings will be obtained. In addition, even if a listing is granted there can be no assurance that there will be sufficient liquidity in the market. If any of these risks were to materialise Bondholders may not be able to sell their Bonds at fair market value or at all.
Risk of early redemption.
In the event that the Issuer would be obliged to increase the amounts payable in respect of any Bonds due to any withholding or deduction for or on account of, any present or future taxes, duties, assessments or governmental charges of whatever nature imposed, levied, collected, withheld or assessed by or on behalf of the Netherlands (with respect to the Issuer) or by or on behalf of Austria (with respect to the Guarantor) or any political subdivision thereof or any authority therein or thereof having power to tax, the Issuer may redeem all outstanding Bonds in accordance with the Terms and Conditions of the Bonds.
Because the Global Bonds (as defined below) are held by or on behalf of Euroclear and Clearstream Luxembourg, investors will have to rely on their procedures for transfer, payment and communication with the Issuer.
The Bonds will be represented by a temporary global bearer bond (the "Temporary Global Bond" and a permanent global bearer bond (the "Permanent Global Bond", together with the Temporary Global Bond, the "Global Bonds" and each a "Global Bond") except in certain limited circumstances described in the Permanent Global Bond. The Global Bonds will be deposited a common safekeeper for Euroclear and Clearstream Luxembourg. Except in certain limited circumstances described in the Permanent Global Bond, investors will not be entitled to receive definitive Bonds. Euroclear and Clearstream Luxembourg will maintain records of the co-ownership participations in the Global Bonds. While the Bonds are represented by the relevant Global Bonds, investors will be able to trade their co-ownership participations only through Euroclear and Clearstream Luxembourg.
The Issuer will discharge its payment obligations under the Bonds by making payments to the common safekeeper for Euroclear and Clearstream Luxembourg for distribution to their account holders. A holder of a co-ownership participation in a Global Bond must rely on the procedures of Euroclear and Clearstream Luxembourg to receive payments under the relevant Bonds. The Issuer has no responsibility or liability for the records relating to, or payments made in respect of, the co-ownership participations in the Global Bonds.
Holders of co-ownership participations in the Global Bonds will not have a direct right to vote in respect of the relevant Bonds. Instead, such holders will be permitted to act only to the extent that they are enabled by Euroclear and Clearstream Luxembourg to appoint appropriate proxies.
Suitability.
Prospective investors should determine whether an investment in the Bonds is appropriate in their particular circumstances and should consult with their legal, business and tax advisers to determine the consequences of an investment in the Bonds and to arrive at their own evaluations of the investment.
Investment in the Bonds is only suitable for investors who:
(i) have the requisite knowledge and experience in financial and business matters to evaluate the merits and risks of an investment in the Bonds;
- 15 - (ii) are capable of bearing the economic risk of an investment in the Bonds for an indefinite period of time;
(iii) are acquiring the Bonds for their own account for investment, not with a view to resale (unless investors are capable of bearing the risk of a possible decline of the market value of the Bonds), distribution or other disposition of the Bonds (subject to any applicable law requiring that the disposition of the investor's property be within its control); and
(iv) will recognise that it may not be possible to make any transfer of the Bonds for a substantial period of time, if at all.
Legality of Purchase.
Neither the Issuer, the Guarantor, the Managers nor any of their respective affiliates has assumed or assumes or will assume responsibility for the lawfulness of the acquisition of the Bonds by a prospective investor of the Bonds, whether under the laws of the jurisdiction of its incorporation or the jurisdiction in which it operates (if different), or for compliance by that prospective investor with any law, regulation or regulatory policy applicable to it.
Taxation.
Potential purchasers and sellers of the Bonds should be aware that they may be required to pay taxes or other documentary charges or duties in accordance with the laws and practices of the country where the Bonds are transferred or other jurisdictions. In some jurisdictions, no official statements of the tax authorities or court decisions may be available for innovative financial instruments such as the Bonds. Potential investors are advised not to rely upon the tax summary contained in this Prospectus but to ask for their own tax adviser's advice on their individual taxation with respect to the acquisition, sale and redemption of the Bonds. Only these advisors are in a position to duly consider the specific situation of the potential investor. These risk factors have to be read in connection with the section "Taxation" on page 28 to 34 of this Prospectus.
Independent Review and Advice.
Each prospective investor of Bonds must determine, based on its own independent review and such professional advice as it deems appropriate under the circumstances, that its acquisition of the Bonds is fully consistent with its (or if it is acquiring the Bonds in a fiduciary capacity, the beneficiary's) financial needs, objectives and condition, complies and is fully consistent with all investment policies, guidelines and restrictions applicable to it (whether acquiring the Bonds as principal or in a fiduciary capacity) and is a fit, proper and suitable investment for it (or if it is acquiring the Bonds in a fiduciary capacity, for the beneficiary), notwithstanding the clear and substantial risks inherent in investing in or holding the Bonds.
A prospective investor may not rely on the Issuer, the Guarantor, the Managers or any of their respective affiliates in connection with its determination as to the legality of its acquisition of the Bonds or as to the other matters referred to above.
Risks relating to the Issuer
Dependency from Verbund Group
The Issuer is an entity of Verbund Group that is merely used for financing purposes. It does not generate any cash- flows or profits from own operating activities. In order to be able to perform its obligations under the Bonds it is dependent on the due performance of its payment claims by its debtors. As the debtors of the Issuer are companies of Verbund Group the materialisation of any of the "Risks relating to the Guarantor and Verbund Group" that are described below may have the effect that debtors of the Issuer fail to make payments to the Issuer when due which, in turn, may cause the inability of the Issuer to perform its obligations under the Bonds when due.
- 16 - Interest Rate Risk
Interest rate risk refers to potential changes of value in financial assets, liabilities or derivatives in response to fluctuations in interest rates. The Issuer holds interest rate sensitive liabilities for financing activities. Changes in interest rates can have adverse effects on the financial position of the Issuer. In order to mitigate the impact of interest rate risk, the Issuer continually assesses and manages its exposure to this risk and hedges those liabilities through the use of derivative financial instruments, such as interest rate swaps.
Operating Risks
Non-financial risks could arise from operating risks. Risks mainly result from the use of computer systems and information technology. The Issuer uses computer systems to monitor financial positions and cash flows and to process payments to internal and external counterparties. System failures can therefore lead to delays in payment processes or the evaluation or settlement of financial transactions.
Financial Risks
The formal procedures and policies operated by the Issuer to cover banking, and other treasury matters are consistent with the objectives and policies for financial risk management with Verbund Group. The Issuer’s policy is not to trade or speculate in financial instruments.
Financial risks arise mainly from volatility relating to liquidity, credit spreads, interest rates, credit and fair market value evaluations.
Liquidity Risks
To manage liquidity, the Issuer has generally entered into a contract with VERBUND-Finanzierungsservice GmbH, the payment factory of Verbund Group, which runs all intercompany clearing accounts, with essential aim of a permanent, short-term and immediate provision of short-term liquidity to the Issuer, so that any differences between the source and application of funds can be equalised.
On the other hand all external financing contracts are guaranteed by Österreichische Eleketrizitätswirtschafts AG.
Risks relating to the Guarantor and Verbund Group
General Risks and Risk Management
The main risks relating to the Guarantor are quantified and documented on an ongoing basis and are aggregated on a quarterly basis to determine a corporate risk ratio. Modern risk tools and the most appropriate valuation methods (e.g. value at risk, sensitivity analysis, expert appraisals) are employed. Correlations derived using special software and it programs (such as "Monte Carlo") are also considered in the aggregation process. In line with standardised reporting, the managing board of the Guarantor is informed of the results and subsequently reports to the supervisory board of the Guarantor on the five most significant risks. The transparent risk reporting system serves as an early-warning system for the Guarantor and creates a basis for the introduction and early execution of targeted control measures not only for risk management and limitation but also for opportunity evaluation.
Risks relating to the Guarantor comprise, inter alia, the following main risk categories:
- Risks relating to the Financial and Political Area;
- Credit Risk;
- Interest Rate Risk; and - 17 -
- Exchange Risk.
Specific Risks and related Risk Management
Risks relating to the Guarantor comprise the following risks:
Financial and Political Area
As a result of its international activities, the Guarantor is affected by global and national economic factors such as changes in currency parties and changes on the financial markets. Exchange rate fluctuations of certain currencies in relation to the Euro can also have a material impact on earnings. Changes in international commodity markets with regard to certain commodities which relate to the Guarantor’s activities may also have an impact on the business development of the Guarantor. Furthermore, cyclical economic volatility also entails an element of risk for future business development. Unforseeable interventionist economic policies can also impair the Guarantor’s performance in specific markets. An escalation of political tensions, terrorist activities or possible pandemics could have a negative impact on the economic situation, the international capital markets and hence the business development of the Guarantor.
In order to reduce some of the afore-mentioned risks, derivative transactions are used exclusively for hedging against existing foreign-currency and interest-rate risks. Hedge accounting in accordance with IAS 39 was used for a number of transactions. The value fluctuations of these hedging transactions are offset by the value fluctuations of hedged transactions. The value fluctuations of the transactions for which hedge accounting was not carried out are recognized in profit or loss. The notional amount comprises the reference basis of those derivative instruments that are open at the balance sheet date. The actual cash flows are merely a fraction of these values.
Credit Risk
The Guarantor defines credit risk as a risk due to uncertainty in one of the Guarantor’s counterparty’s ability to meet its obligations relating to the Guarantor. When evaluating credit risks, the Guarantor has to consider (i) default probability, i.e. the Guarantor evaluates the likelihood that the relevant counterparty will default on its obligation either over the life of the obligation or over some specific period of time; (ii) credit exposure, i.e. in the event of a default, how large will the outstanding obligation be when the default occurs; and (iii) recovery rate, i.e. in the event of a default, what fraction of the exposure may be recovered through bankruptcy proceeings or some other form of settlement.
The amounts recognised on the asset side also represent the maximum credit risk and risk of default. As part of the group-wide risk management system, the counterparty credit risk in electricity and grid business as well as in the financial area is assessed and monitored in a uniform manner across the group. Transactions, apart from minor amounts, are only entered into with customers with a sufficient credit rating either on the basis of an external investment grade rating of an international rating agency (Moody’s, Standard & Poor’s) or following an internal credit check which determines a rating equivalent. For this purpose, each counterparty is assigned an individual limit which will be monitored across the group. Money market investments are also only concluded with financial partners that have an appropriate credit rating. All counterparty risks and the customer structure portfolio are monitored on the basis of default likelihoods which are calculated by international rating agencies. If the credit assessment or rating does not meet the requirements, i.e. an investment grade rating is not reached, transactions will be entered into only on the precondition of sufficient security (e.g., prepayments, bank guarantees, letters of comfort). These counterparty requirements serve to reduce default risks. Netting agreements are concluded to further minimize the risk level. As a rule counterparty risks are not insured.
Interest Rate Risk
Interest rate risk refers to potential changes of value in financial assets, liabilities or derivatives in response to fluctuations in interest rates. The Guarantor holds interest rate sensitive liabilities for financing activities. Changes - 18 - in interest rates can have adverse effects on the financial position of the Guarantor. In order to mitigate the impact of interest rate risk, the Guarantor continually assesses and manages its exposure to this risk and hedges those liabilities through the use of derivative financial instruments, such as interest rate swaps.
Furthermore, the Guarantor considers fluctuations in interest rates a substantial cash flow risk. Under the rules of risk management, only a maximum of 40 per cent. of the financial obligations (incl. money market transactions) may be subject to a floating rate. As of 31 December 2006, the share of financial obligations where the Guarantor has a corresponding interest-rate risk after netting out money market transactions was approx. 39 per cent. (previous year: 23 per cent.). An increase in the interest rate by 1 per cent. would entail a reduction of the financial result by Euro 2.0 million p.a. (previous year: Euro 2.7 million p.a.), based on the existing credit portfolio without money-market borrowings that existed on the balance sheet date. The utilisation of hedging instruments serves to reduce the effects short-term fluctuations in the market price have on earnings. Sustained negative changes in the market price, however, may have a negative effect on earnings. As of 31 December 2006, interest-rate swaps only exist in connection with cross border leasing transactions. These interest-rate swaps are classified as fair value hedges. The fair value of these derivative transactions forms, together with related securities, loans and receivables, a micro-valuation unit in each case, which corresponds exactly to the recognised fair value of the financial obligation. The average remaining maturity of the overall portfolio excluding money- market items amounts to 2.4 years (previous year: 4.1 years).
Exchange Risk
There is no significant exchange risk on the asset side, because supplies are almost exclusively invoiced in Euro. The same is essentially true of the other primary financial instruments. Since the assets (long-term investments, loans) and liabilities in connection with cross border leasing transactions are exclusively quoted in U.S. Dollar and since corresponding hedging transactions have been concluded, there is no exchange risk. The situation on the liabilities side is different. Financing in a foreign currency was of considerable importance to the Guarantor in the past due to the positive interest differential compared to financing in Euro. In this context, the option to hedge against exchange risk was not exercised, or only rarely. In the past few years and in the period under review, this strategy, despite taking into consideration unfavorable rate developments, resulted in considerable interest advantages and significantly improved actual costs compared to conventional Euro financing. Under the rules of risk management within the Guarantor, the foreign-currency share of financial obligations (excluding cross border leasing transactions) must not exceed the maximum values defined for each foreign-currency portion (max. 12 per cent. Japanese Yen). A foreign currency exchange rate risk now only exists for the financial obligation in the amount of Japanese Yen 12.9 billion. If Japanese Yen was to change by 1 per cent. vis-à-vis Euro, the result would decrease by approx. Euro 0.8 million (previous year: Euro 1.1 million. A financial obligation in the amount of CHF 320 million, which was converted to Euro through the conclusion of a cross-currency swap in the previous year, was cleared according to schedule in fiscal 2006.
Identification of further Risks and related Risk Management
Furthermore, the Guarantor identifies the following risks:
• Price risks from securities Price risks from securities comprise the volatility and market price fluctuation of securities held by the Guarantor. The Guarantor’s risk management aims at minimizing such risk through certain investment strategies, monitoring and quantification.
• Personnel risk Personnel risks include changes to labor laws, absenteeism of employees and employee fluctuation as well as difficulties in connection with recruitment of employees.
• Lawsuit/legal risks/legal environment Lawsuit/legal risks/legal environment risks include risks from legal proceedings and from new legislation or legislative amendments. The Guarantor aims at minimising such risks through constant monitoring and - 19 - lobbying.
• Risks in connection with own production Risks in connection with own production comprise the volume risk from the volatile water supply and the associated price risk. The Guarantor aims at minimising such risks through analysis, water forecasts and long-term sales.
• Investment Risks Investment risks may result from damages to plant and equipment. The Guarantor aims at minimising such risks through optimised maintenance strategy and insurance.
• Fuel Risk/Risk of Loss Fuel Risk and Risk of Loss may result from changes in the raw material prices. The Guarantor aims at minimising such risks through price forecasts, volume planning and hedging strategies.
• Price risk from electricity purchases Price risk from electricity purchases may result from losses through price volatility in the electricity market.
• Risks in connection with Investment exposure Risks in connection with investment exposure may result from fluctuations in the interest value, dividend or profit distribution and contingent liability risks or receivables. The Guarantor aims at minimising such risks through identification, analysis, quantification and monitoring.
Risk Management
At the Guarantor, risk management is an essential corporate management tool. Parallel to the identification and exploitation of opportunities, risks are also accepted with the ultimate aim of enhancing corporate value. Risk management therefore aims to secure the income and financial situation of the group and identify existing and future success and growth potential. Cross-company risk management has been installed at the Guarantor since 2001 to ensure that these opportunities and risks can be identified and assessed as early as possible.
At the Guarantor, systematic risk management is integrated into the organizational and operational structures of all the subsidiaries. Essential tasks include the exchange of information on risk-relevant matters and the further development of risk management in all areas. During the fiscal year 2006, a risk management software was implemented throughout the group so as to optimise the risk management process and enhance risk awareness. This software was designed to steer the risk management process in line with the requirements of the group. Other focal points included the handling of project risks and the group’s crisis management activities as well as the enhanced promotion of risk management in the group companies. Within the Guarantor, risk is defined as the possibility of a positive or negative deviation from the corporate objectives and ratios. The systematic risk management process begins with the regular identification of risks in the organisational units, subsidiaries and holdings. The individual risks that are ascertained are prioritised as main risks on the basis of a scoring procedure.
- 20 -
GENERAL INFORMATION
Responsibility
VERBUND-International Finance B.V. as Issuer with its registered office at Prins Bernhardplein 200, 1097 JB Amsterdam, the Netherlands and Österreichische Elektrizitätswirtschafts-Aktiengesellschaft as the Guarantor with its registered office at Am Hof 6A, 1010 Wien, Republic of Austria as Guarantor assume responsibility for the contents of this Prospectus and hereby declare that, having taken all reasonable care to ensure that such is the case, the information contained in this Prospectus is, to the best of their knowledge, in accordance with the facts and contains no omission likely to affect its import.
The Managers have not independently verified the information contained herein. Accordingly, no representation, warranty or undertaking, whether expressed or implied, is made, and no responsibility is accepted, by the Managers with respect to the accuracy or completeness of this Prospectus or any further information supplied in connection with the Bonds. The Managers accept no liability in relation to this Prospectus or its distribution or with regard to other information supplied by the Issuer or the Guarantor herein, save for mandatory provisions of law.
Key information
Interest of natural and legal persons involved
Each Manager is entitled to customary fees depending on the success of the issuance of the Bonds. In addition, the auditors and the legal advisor are entitled to customary fees.
Besides the disclosed interests above, so far as the Issuer and the Guarantor are aware, no person involved in the offer of the Bonds has an interest material to the offer.
Use of Proceeds and Reasons for the Offering
The net proceeds of the Bonds amounting to approximately EUR 496,183,000 will be used for general corporate purposes. The estimated total expenses amount to approximately EUR 500,000.
Information concerning the Bonds
Subject Matter of the Prospectus
The subject matter of the Prospectus is a total of EUR 500,000,000 5.00 per cent. Bonds dated 2007/2014 in denominations of EUR 50,000 and integral multiples of EUR 1,000 in excess thereof. The Bonds are governed by German law and constitute bonds in bearer form in accordance with Sec. 793 et seq. of the German Civil Code.
The security codes of the Bonds are as follows:
ISIN Code: ...... XS0307453026 Common Code:...... 030745302 Other Securities Code (WKN) ...... A0V0W5
Status
The Bonds entitle the Bondholders to annual payments of interest, to be made in arrear on each Interest Payment Date, and repayment of principal on the Maturity Date. Upon occurrence of an Event of Default (as defined in § 8 of
- 21 - the Terms and Conditions of the Bonds), the Bondholders are entitled to declare all of their claims arising under the Bonds due by means of a written notice delivered by hand or registered mail to one of the Paying Agents.
The Bonds constitute direct, unconditional, unsubordinated and unsecured obligations of the Issuer ranking pari passu among themselves and pari passu with all other unsecured and unsubordinated obligations of the Issuer, present and future, unless such obligations are accorded priority under mandatory provisions of statutory law.
Form
The Bonds will initially be represented by the Temporary Global Bond, without interest coupons, which will be deposited with a common safekeeper for both Euroclear and Clearstream Luxembourg on or about the Issue Date. The Bonds have been accepted for clearance through Euroclear and Clearstream Luxembourg. Except as otherwise described herein, interests in the Temporary Global Bond will be exchangeable for interests in the Permanent Global Bond without interest coupons, not earlier than 40 days after the Issue Date upon certification as to non-U.S. beneficial ownership (subject to certain exceptions set forth in the certification).
The Bondholders are not entitled to demand the issuance of Bonds in definitive form or interest coupons. The Bondholders will receive co-ownership participations in the Temporary Global Bond and the Permanent Global Bond.
Minimum Trading Size
There is a minimum trading size of EUR 50,000 and, above EUR 50,000, in increments of EUR 1,000.
Authorisation to issue the Bonds
The issue of the Bonds was authorised by the Guarantor’s Management Board on 19 April 2007 and by the Guarantor’s Supervisory Board on 8 May 2007. The issue of the Bond was authorised by the Managment Board of the Issuer on 20 June 2007 and by the Supervisory Board on 20 June 2007.
Interest and Yield
The Bonds bear interest at a rate of 5.00 per cent. per annum from the Issue Date (including) to the Maturity Date (excluding). Interest shall be payable annually in arrear on 25 June in each year. The first payment of interest shall be made on 25 June 2008. Based on an issue price of 99.487 per cent., the initial return on the issue (yield) for the subscribers is expected to be 5.089 per cent. calculated in accordance with the ICMA (International Capital Market Association) method.
The yield was calculated in accordance with the following formula by using an iterative method for solving the equivalent for the variable (i) (internal rate of return or yield):
CF0 = CF1 + CF2 + . . . + CFn (1 + i) (1 + i)2 (1 + i)n
"CF0" means the amount of capital input for the subscription of the Bonds;
"CF1 to CFn" means the cash inflow as of 25 June of each year until maturity of the Bonds (interest payments and repayment of principal amount); and
"n" means the life of the Issue in years.
If a Bondholder does not present the Bond for repayment of principal within 10 years upon the due date the repayment claim becomes extinct. With regard to interest payments the respective presentation period is four years. If the Bond is presented the claim becomes time-barred two years after the end of the respective presentation period. - 22 -
Maturity
Unless previously redeemed in whole or in part or purchased and cancelled as set forth in the Terms and Conditions of Issue, the Bonds will be redeemed at their denomination on the Maturity Date. Pursuant to the Terms and Conditions of the Bonds, repayment shall be made to the Paying Agents for on-payment to Euroclear and/or Clearstream Luxembourg or to its order for credit to the respective account holders of Euroclear and/or Clearstream Luxembourg. A payment to Euroclear and/or Clearstream Luxembourg constitutes the discharge of the Issuer from its corresponding liabilities under the Bonds.
Description of certain Key Rights related to the Bonds and the Guarantee
Guarantee
The payment of principal and interest together with all other sums payable by the Issuer in respect of the Bonds has been unconditionally and irrevocably guaranteed by the Guarantor. The Guarantor has undertaken in the guarantee, as long as any Bonds remain outstanding, but only up to the time all amounts of principal and interest have been placed at the disposal of the Paying Agents, not to create or permit to subsist any mortgage charge, pledge, lien or other encumbrance upon any or all of its present or future assets for any present or future Financial Indebtedness (as defined in the Terms and Conditions of the Bonds) without at the same time having the Bondholders' share equally and rateably in such security or such other security as shall be approved by an independent accounting firm of internationally recognised standing as being equivalent security.
The guarantee given by the Guarantor constitutes a direct, unconditional, unsubordinated and unsecured obligation of the Guarantor ranking pari passu with all other unsecured and unsubordinated obligations of the Guarantor, present and future, unless such obligations are accorded priority under mandatory provisions of statutory law.
Negative Pledge
Each of the Issuer and the Guarantor undertakes, as long as any Bonds are outstanding, but only up to the time all amounts of principal and interest have been placed at the disposal of one of the Paying Agents, not to create or permit to subsist any mortgage charge, pledge, lien or other encumbrance upon any or all of its present or future assets as security for any present or future Financial Indebtedness, or any guarantees or other indemnities in respect of any such Financial Indebtedness, without at the same time having the Bondholders' share equally and rateably in such security or such other security as shall be approved by an independent accounting firm of internationally recognised standing as being equivalent security.
Cross-Default
Each Bondholder shall be entitled to declare all of its claims arising under the Bonds due and demand redemption thereof at their principal amount plus interest accrued, inter alia, in the event that the Issuer or the Guarantor fails to fulfill any payment obligation in excess of Euro 10,000,000 or the equivalent thereof under any Financial Indebtedness or under any guarantees or suretyships given for any Financial Indebtedness of others within 30 days from its due date or, in the case of a guarantee or suretyship, within 30 days of such guarantee or suretyship being invoked, unless the Issuer or, as the case may be, the Guarantor contests in good faith that such payment obligation exists or is due or that such guarantee or suretyship has been validly invoked (see also the § 8 of the Terms and Conditions of Bonds regarding the quorum required to exercise this right to terminate).
Fiscal Agent
The Issuer shall make payments of principal and interest on the Bonds to Citibank, N.A., Agency and Trust (the "Fiscal Agent"). Both the Temporary Global Bond and the Permanent Global Bond shall be deposited with a common safekeeper for Euroclear and Clearstream Luxembourg.
- 23 - Listing Agent and Paying Agent in Luxembourg, Paying Agent in Austria
The Issuer has appointed Dexia Banque International à Luxembourg as paying agent in Luxembourg and as listing agent for the Luxembourg Stock Exchange. Furthermore, the Issuer has appointed Citibank International plc Austria Branch as Paying Agent in Austria.
Listing and Trading Information
Application has been made to list the Bonds on the official list of the Luxembourg Stock Exchange and to trade the Bonds on the regulated market of the Luxembourg Stock Exchange. Furthermore, application has been made for listing of the Bonds on the Semi-Official Market (Geregelter Freiverkehr) of the Vienna Stock Exchange.
Applicable Law, Place of Performance and Jurisdiction
The form and content of the Bonds and all rights and obligations arising under the Bonds are governed by the laws of Germany.
The place of performance and jurisdiction is Frankfurt am Main, Germany.
Underwriting and Sale
Barclays Bank PLC, Citigroup Global Markets Limited, Bank Austria Creditanstalt AG, BNP Paribas, CALYON, Erste Bank der oesterreichischen Sparkassen AG, Raiffeisen Zentralbank Österreich Aktiengesellschaft and The Royal Bank of Scotland plc (together the "Managers") have, under an underwriting agreement dated 21 June 2007 (the "Underwriting Agreement"), agreed with the Issuer and the Guarantor to subscribe for the Bonds, the issue price of which is 99.487 per cent. Under the Underwriting Agreement, the Issuer and the Guarantor have agreed to indemnify the Managers against certain liabilities in connection with the offer and the sale of the Bonds.
Additional Information
Credit Ratings
Credit ratings of "A" and "A1" have been assigned to the Guarantor by Standard & Poor's and Moody's, respectively. A credit rating is the current opinion of the respective credit rating agency regarding the obligor's capacity and willingness to fully meet its financial commitments as they come due. No credit ratings have been assigned to the Issuer.
A Standard & Poor's credit rating in the "A" category means that an obligation is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher rated categories. However, the obligor´s capacity to meet its financial commitment on the obligation is still strong.
According to the credit rating agency Moody's, rating symbols for issuer ratings are identical to those used to indicate the credit quality of long-term obligations. A long-term obligation rating of A1 issued by Moody's indicates that the relevant obligantions are considered upper-medium grade and are subject to low credit risk.
Credit ratings of "A" and "A1" have also been assigned to the Bonds by Standard & Poor's and Moody's, respectively.
- 24 - Language of the Prospectus
This Prospectus has been drafted in the English language and, subject to the following paragraph, the English language shall be the prevailing language of this Prospectus.
Where parts of this Prospectus are drafted in a bilingual format reflecting both an English language version and a German language version, for purposes of reading and construing the contents of this Prospectus, the English language version shall prevail, provided, however, that certain parts of this Prospectus reflect documents which have been, or will be, executed as separate documents with the German language version being the prevailing version thereof.
The Terms and Conditions of the Bonds are written in the German language and provided with an English language translation. The German text shall be controlling and binding. The English language translation is provided for convenience only.
Notification
In order to list the Bonds, inter alia, on the Vienna Stock Exchange, the Issuer intends to apply for a notification pursuant to Article 19 of the Luxembourg Act into Austria.
Incorporation by Reference
The following documents shall be deemed to be incorporated and to form part of this Prospectus:
Document incorporated by Reference Page Reference within the Page Reference Document within the Prospectus
The financial statements of VERBUND- International Finance B.V. for the financial year ended 31 December 2005 containing: The balance sheet as at 31 December 2005 5 66 The profit and loss account for the period ended 2005 6 66 The cash flow statement for the financial year ended 31 December 2006 and 31 December 2005 8 66 The Notes to the annual accounts for the financial year ended 31 December 2005 7 66 The Audit Opinion (English translation) 15 66 The financial statements of VERBUND- International Finance B.V. for the financial year ended 31 December 2006 containing: The balance sheet as at 31 December 2006 5 66 The profit and loss account for the year 2006 6 66 The cash flow statement for the financial year ended 31 December 2006 7 66
- 25 - The Notes to the annual accounts for the financial year ended 31 December 2006 8 66 The (separate) Audit Opinion relating to the financial statements of VERBUND-International Finance B.V. for the financial year ended 31 December 2006 1-2 66 The financial statements of VERBUND- International Finance B.V. for the first quarter ended 31 March 2007 containing: The profit and loss account as at 1 31 March 2007 (unaudited) 66 The balance sheet as at 31 March 2007 (unaudited) 2 through 3 66 The cash flow statement as at 31 March 2007 (unaudited) 4 66 The consolidated financial statements of Verbund Group for the financial year ended 31 December 2005 containing: The consolidated income statement as of 31 December 2005 80 74 The consolidated balance sheet as of 31 December 2005 81 74 The consolidated cash flow statement for the financial year ended 31 December 2005 82 74 Consolidated Statement of Changes in Equity 83 74 The Notes to the consolidated financial statements for the financial year ended 31 December 2005 84 – 139 74 The Auditor’s Report (English translation) 140 75 The consolidated financial statements of Verbund Group for the financial year ended 31 December 2006 containing: The consolidated income statement as of 31 December 2006 78 74 The consolidated balance sheet as of 31 December 2006 79 74 The consolidated cash flow statement for the financial year ended 31 December 2006 80 74 Consolidated Statement of Changes in Equity and in Capital Shares Repayable on Demand 81 75 The Notes to the consolidated financial statements for the financial year ended 31 December 2006 82 – 131 75 The Auditor’s Report (English translation) 132 75 Chart Group Companies 128 – 131 70
- 26 - The consolidated financial statements of Verbund Group for the first quarter ended 31 March 2007 containing: The consolidated income statement as of 31 March 2007 (unaudited) 8 75 The consolidated balance sheet as of 31 March 2007 (unaudited) 9 75 The consolidated cash flow statement as at 31 March 2007 (unaudited) 10 75 Consolidated Statement of Changes in Equity and in Capital Shares Repayable on Demand (unaudited) 10 75
Any information not listed in the table above but included in the documents incorporated by refrence into this Prospectus is given for information purposes only.
Documents on Display
During the validity of this Prospectus, copies of
(i) the Issuer's articles of association, the financial statements for the financial years ended 31 December 2005 and 31 December 2006 and for the first quarter ended 31 March 2007 (unaudited);
(ii) the Guarantor's articles of association, the financial statements for the financial years ended 31 December 2005 and 31 December 2006 and for the first quarter ended 31 March 2007 (unaudited);
(iii) this Prospectus and any supplement thereto;
(iv) the Underwriting Agreement;
(v) the agency agreement dated 21 June 2007 with regard to the issue of the Bonds; and
(v) the guarantee and the negative pledge dated 21 June 2007 with regard to the Bonds can be inspected at the registered office of the Issuer, Prins Bernhardplein 200, 1097JB Amsterdam, the Netherlands, during usual business hours.
Furthermore documents referred to under (i) to (iii) above will be published on the homepage of the Luxembourg Stock Exchange under www.bourse.lu.
- 27 - TAXATION
The following general discussion of certain tax consequences in certain jurisdictions of an investment in the Bonds is only a summary of the material tax considerations. Although this discussion reflects the opinions of the Issuer and the Guarantor it must not be misunderstood as a guarantee in an area of law which is not free from doubt. This section is based on the laws in force as of the printing date of this Prospectus. It does not purport to be a comprehensive description of all tax considerations which may be relevant to a decision to purchase Bonds, and in particular, does not consider any specific facts or circumstances that may apply to a particular purchaser. This summary is based on the laws of the respective jurisdictions currently in force and as applied on the date of this Prospectus, which are subject to change, possibly with retroactive or retrospective effect.
Investors are advised to consult their own tax advisors as to the individual tax consequences of the investment
Luxembourg
The following is a summary of certain material Luxembourg tax consequences of purchasing, owning and disposing of the Bonds. It does not purport to be a complete analysis of all possible tax situations that may be relevant to a decision to purchase, own or sell the Bonds. It is included herein solely for preliminary information purposes. It is not intended to be, nor should it construed to be, legal or tax advice. Prospective purchasers of the Bonds should consult their own tax advisers as to the applicable tax consequences of the ownership of the Bonds, based on their particular circumstances. This summary does not allow any conclusions to be drawn with respect to issues not specifically addressed. The following description of Luxembourg tax law is based upon the Luxembourg law and regulations as in effect and as interpreted by the Luxembourg tax authorities on the date of the Prospectus and is subject to any amendments in law (or in interpretation) later introduced, whether or not on a retroactive basis.
Please be aware that the residence concept used under the respective headings below applies for Luxembourg income tax assessment purposes only. Any reference in the present section to a tax, duty, levy impost or other charge or withholding of a similar nature refers to Luxembourg tax law and/or concepts only. Also, please note that a reference to Luxembourg income tax encompasses corporate income tax (impôt sur le revenu des collectivités), municipal business tax (impôt commercial communal), a solidarity surcharge (contribution au fonds de chômage), as well as personal income tax (impôt sur le revenu) generally. Investors may further be subject to net wealth tax (impôt sur la fortune) as well as other duties, levies or taxes. Corporate income tax, municipal business tax as well as the solidarity surcharge invariably apply to most corporate taxpayers resident of Luxembourg for tax purposes. Individual tax payers are generally subject to personal income tax and the solidarity surcharge. Under certain circumstances, where an individual taxpayer acts in the course of the management of a professional or business undertaking, municipal business tax may apply as well.
Luxembourg tax residency of the Bondholders
A Bondholder will not become resident, nor be deemed to be resident, in Luxembourg by reason only of the holding of the Bonds, or the execution, performance, delivery and/or enforcement of the Bonds.
Withholding Tax
Resident Bondholders
Under the Luxembourg law dated 23 December 2005 (hereafter, the "Law"), a 10 per cent. Luxembourg withholding tax is levied as of 1st January 2006 on interest payments made by Luxembourg paying agents to Luxembourg individual residents. This withholding tax also applies on accrued interest received upon disposal, redemption or repurchase of the Bonds. Such withholding tax will be in full discharge of income tax if the
- 28 - beneficial owner is an individual acting in the course of the management of his/her private wealth. Non-resident Bondholders
Under the Luxembourg tax law currently in effect and subject to the application of the Luxembourg laws dated 21 June 2005 (the "Laws") implementing the European Council Directive 2003/48/EC on the taxation of savings income (the "Directive") and several agreements concluded between Luxembourg and certain dependant territories of the European Union, there is no withholding tax on payments of interests (including accrued but unpaid interest) made to a Luxembourg non-resident Bondholder. There is also no Luxembourg withholding tax, upon repayment of the principal, or subject to the application of the Laws, upon redemption or exchange of the Bonds. Under the Laws, a Luxembourg based paying agent (within the meaning of the Directive) is required since 1 July 2005, to withhold tax on interest and other similar income (including reimbursement premium received at maturity) paid by it to (or under certain circumstances, to the benefit of) an individual or a residual entity ("Residual Entity") in the sense of article 4.2. of the Directive (i.e. an entity without legal personality and whose profits are not taxed under the general arrangements for the business taxation and that is not, or has not opted to be considered as, a UCITS recognized in accordance with Council Directive 85/611/EEC), resident or established in another Member State of the European Union unless the beneficiary of the interest payments elects for an exchange of information. The same regime applies to payments to individuals or Residual Entity resident in any of the following territories: Aruba, British Virgin Islands, Guernsey, the Isle of Man, Jersey, Montserrat and the Netherlands Antilles.
The withholding tax is initially 15 per cent, increasing steadily to 20 per cent. and to 35 per cent. The withholding tax system will only apply during a transitional period, the ending of which depends on the conclusion of certain agreements relating to information exchange with certain other countries.
In each case described above, responsibility for the withholding tax will be assumed by the Luxembourg paying agent.
Taxation of the Bondholders
Non-resident Bondholders
Bondholders who are non-residents of Luxembourg and who have neither a permanent establishment nor a permanent representative in Luxembourg to which the Bonds are attributable are not liable to any Luxembourg income tax, whether they receive payments of principal or interest (including accrued but unpaid interest) or realize capital gains upon redemption, repurchase, sale or exchange of any Bonds.
Bondholders who are non-residents of Luxembourg and who have a permanent establishment or a permanent representative in Luxembourg to which the Bonds are attributable have to include any interest received or accrued, as well as any capital gain realized on the sale or disposal of the Bonds in their taxable income for Luxembourg income tax assessment purposes.
Resident Bondholders
General
Resident Bondholders or non-resident Bondholders who have a permanent establishment or a permanent representative in Luxembourg to which the Bondholders are attributable, must, for income tax purposes, include any interest paid or accrued in their taxable income, unless withholding tax has been thereon levied thereon in accordance with the Law.
Luxembourg resident individuals
An individual Bondholder, acting in the course of the management of his/her private wealth, is subject to Luxembourg income tax in respect of interest received, redemption premiums or issue discounts under the Bonds, - 29 - except if a withholding tax has been levied on such payments in accordance with the Law.
Under Luxembourg domestic tax law, gains realised upon the sale, disposal or redemption of the Bonds, by an individual Bondholder, who is a resident of Luxembourg for tax purposes and who acts in the course of the management of his/her private wealth, on the sale or disposal, in any form whatsoever, of Bonds are not subject to Luxembourg income tax, provided this sale or disposal took place six months after the acquisition of the Bonds. An individual Bondholder, who acts in the course of the management of his/her private wealth and who is a resident of Luxembourg for tax purposes, has further to include the portion of the gain corresponding to accrued but unpaid income in respect of the Bonds in his/her taxable income, insofar as the accrued but unpaid interest is indicated separately in the agreement.
Luxembourg resident individual Bondholders acting in the course of the management of a professional or business undertaking to which the Bonds are attributable, have to include any interest received or accrued, as well as any gain realized on the sale or disposal of the Bonds, in their taxable income for Luxembourg income tax assessment purposes. Taxable gains are determined as being the difference between the sale, repurchase or redemption price (including accrued but unpaid interest) and the lower of the cost or book value of the Bonds sold or redeemed.
Luxembourg corporate residents
Luxembourg corporate Bondholders must include any interest received or accrued, as well as any gain realized on the sale or disposal of the Bonds, in their taxable income for Luxembourg income tax assessment purposes. Taxable gains are determined as being the difference between the sale, repurchase or redemption price (including but unpaid interest) and the lower of the cost or book value of the Bonds sold or redeemed.
Luxembourg corporate residents benefiting from a special tax regime
Luxembourg Bondholders who benefit from a special tax regime, such as, for example, holding companies subject to the amended law of 31 July 1929, or family wealth management companies subject to the law of 11 May 2007, or undertakings for collective investment subject to the amended laws of 30 March 1988 and/or of 20 December 2002 and specialized investment funds subject to the law of 13 February 2007 are exempt from income and wealth taxes in Luxembourg and thus income derived from the Bonds as well as gains realized thereon, are not subject to income or wealth taxes.
Net Wealth Tax
Luxembourg resident Bondholders and Bondholders who have a permanent establishment or a permanent representative in Luxembourg to which the Bonds are attributable, are subject to Luxembourg wealth tax on such Bonds, except if the Bondholder is (i) a resident or non-resident individual taxpayer, (ii) a holding company subject to the amended law of 31 July 1929, (iii) a family wealth management company subject to the law of 11 May 2007, (iv) an undertaking for collective investment subject to the amended law of 20 December 2002, (v) a securitization company governed by the law of 22 March 2004 on securitization, (vi) a company governed by the law of 15 June 2004 on venture capital vehicles or (vii) a specialized investment fund governed by the law of 13 February 2007.
Other Taxes
There is no Luxembourg registration tax, stamp duty or any other similar tax or duty payable in Luxembourg by the Bondholders as a consequence of the issuance of the Bonds, nor will any of these taxes be payable as a consequence of a subsequent transfer of redemption or repurchase of the Bonds.
There is no Luxembourg value added tax payable in respect of payments in consideration for the issuance of the Bonds or in respect of the payment of interest or principal under the Bonds or the transfer of the Bonds. Luxembourg value added tax may, however, be payable in respect of fees charged for certain services rendered to - 30 - the Issuer, if for Luxembourg value added tax purposes such services are rendered or are deemed to be rendered in Luxembourg and an exemption from Luxembourg value added tax does not apply with respect to such services.
No estate or inheritance taxes are levied on the transfer of the Bonds upon death of a Bondholder in cases where the deceased was not a resident of Luxembourg for inheritance tax purposes. Gift tax may be due on a gift or donation of Bonds if the gift is recorded in a deed passed in front of a Luxembourg notary or otherwise registered in Luxembourg.
Austria
This section on taxation contains a brief summary of the Issuers' understanding with regard to certain important principles which are of significance in Austria in connection with the purchase, holding or sale of the Bonds. This summary does not purport to exhaustively describe all possible tax aspects and does not deal with specific situations which may be of relevance for certain potential investors. It is based on the currently valid tax legislation, case law and regulations of the tax authorities, as well as their respective interpretation, all of which may be amended from time to time. Such amendments may possibly also be effected with retroactive effect and may negatively impact on the tax consequences described. It is recommended that potential purchasers of the Bonds consult with their legal and tax advisors as to the tax consequences of the purchase, holding or sale of the Bonds. Tax risks resulting from the Bonds shall in any case be borne by the purchaser.
General remarks
Individuals having a permanent domicile (Wohnsitz) and/or their habitual abode (gewöhnlicher Aufenthalt) in Austria are subject to income tax (Einkommensteuer) in Austria on their worldwide income (unlimited income tax liability; unbeschränkte Einkommensteuerpflicht). Individuals having neither a permanent domicile nor their habitual abode in Austria are subject to income tax only on income from certain Austrian sources (limited income tax liability; beschränkte Einkommensteuerpflicht).
Corporations having their place of effective management (Ort der Geschäftsleitung) and/or their legal seat (Sitz) in Austria are subject to corporate income tax (Körperschaftsteuer) in Austria on their worldwide income (unlimited corporate income tax liability; unbeschränkte Körperschaftsteuerpflicht). Corporations having neither their place of effective management nor their legal seat in Austria are subject to corporate income tax only on income from certain Austrian sources (limited corporate income tax liability; beschränkte Körperschaftsteuerpflicht).
Both in case of unlimited and limited (corporate) income tax liability Austria's right to tax may be restricted by double taxation treaties.
Taxation of the Bonds
Income tax
In general, the Bonds qualify as bonds (Forderungswertpapiere) in the sense of sec. 93(3) of the Austrian Income Tax Act (Einkommensteuergesetz).
Individuals subject to unlimited income tax liability in Austria holding bonds in the sense of sec. 93(3) of the Austrian Income Tax Act as a non-business asset (Privatvermögen) are subject to income tax on all resulting interest payments (which term also encompasses the difference between the redemption price and the issue price) pursuant to sec. 27(1)(4) and sec. 27(2)(2) of the Austrian Income Tax Act. If such interest is paid out by an Austrian paying agent (kuponauszahlende Stelle) then the payments are subject to a withholding tax of 25 per cent. No additional income tax is levied over and above the amount of tax withheld (final taxation; Endbesteuerung) in case the bonds are legally and factually offered to an indefinite number of persons. If interest payments are not effected through an Austrian paying agent, a flat income tax rate of 25 per cent. applies in case the bonds are in addition legally and factually offered to an indefinite number of persons. Since in this case no withholding tax is levied, interest payments must be included in the income tax return of the investor. If the bonds are not legally and factually offered - 31 - to an indefinite number of persons then the interest payments must be included in the investor's income tax return and are subject to income tax at a marginal rate of up to 50 per cent., any withholding tax being creditable against the income tax liability.
Individuals subject to unlimited income tax liability in Austria holding bonds as a business asset (Betriebsvermögen) are subject to income tax on all resulting interest payments (which term also encompasses the difference between the redemption price and the issue price). Such interest payments are subject to a withholding tax of 25 per cent. in case they are paid out by an Austrian paying agent. No additional income tax is levied over and above the amount of tax withheld (final taxation) in case the bonds are legally and factually offered to an indefinite number of persons. If interest payments are not effected through an Austrian paying agent, a flat income tax rate of 25 per cent. applies in case the bonds are in addition legally and factually offered to an indefinite number of persons. Since in this case no withholding tax is levied, interest payments must be included in the income tax return of the investor. If the bonds are not legally and factually offered to an indefinite number of persons, then the interest payments must be included in the investor's income tax return and are subject to income tax at a marginal rate of up to 50 per cent., any withholding tax being creditable against the income tax liability.
Corporations subject to unlimited corporate income tax liability in Austria are subject to corporate income tax on all interest payments (which term also encompasses the difference between the redemption price and the issue price) resulting from bonds at a rate of 25 per cent. Under the conditions set forth in sec. 94(5) of the Austrian Income Tax Act no withholding tax is levied.
Private foundations (Privatstiftung) pursuant to the Austrian Private Foundations Act (Privatstiftungsgesetz) fulfilling the prerequisites contained in sec. 13(1) of the Austrian Corporate Income Tax Act (Körperschaftsteuergesetz) and holding bonds as a non-business asset are subject to corporate income tax (interim taxation; Zwischenbesteuerung) on all resulting interest payments received (which term also encompasses the difference between the redemption price and the issue price) pursuant to sec. 13(3)(1) of the Austrian Corporate Income Tax Act at a rate of 12.5 per cent. in case the bonds are in addition legally and factually offered to an indefinite number of persons. If the bonds are not legally and factually offered to an indefinite number of persons, then the interest payments are subject to corporate income tax at a rate of 25 per cent. Under the conditions set forth in sec. 94(11) of the Austrian Income Tax Act no withholding tax is levied.
Individuals subject to limited income tax liability in Austria holding bonds in the meaning of sec. 93(3) of the Austrian Income Tax Act are subject to income tax at a rate of 25 per cent. on all resulting interest payments (which term also encompasses the difference between the redemption price and the issue price) in Austria if – broadly speaking – the bonds are attributable to an Austrian permanent establishment (Betriebsstätte) of the investor. The same applies with respect to corporations subject to limited corporate income tax liability in Austria, the tax rate also being 25 per cent. If interest received by non-resident individuals and corporations is not subject to (corporate) income tax but if at the same time it is subject to withholding by virtue of an Austrian paying agent, the withholding tax will be refunded upon the investor's application. The Austrian Ministry of Finance has also provided for the possibility for the non-resident investor to furnish proof of non-residency, in which case the Austrian paying agent may refrain from withholding in the first place.
EU withholding tax
Sec. 1 of the Austrian EU Withholding Tax Act (EU-Quellensteuergesetz) – which transforms into national law the provisions of Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments – provides that interest payments paid or credited by an Austrian paying agent to a beneficial owner who is an individual resident in another Member Sate is subject to a withholding tax if no exception from such withholding applies. Currently, the withholding rate amounts to 15 per cent.
Austrian inheritance and gift tax
Pursuant to the Austrian Inheritance and Gift Tax Act (Erbschafts- und Schenkungssteuergesetz), transfers of assets inter vivos and inter mortuos are taxable. Sec. 15(1)(17) of the Austrian Inheritance and Gift Tax Act provides for a - 32 - tax exemption in the case of a transfer of bonds inter mortuos insofar as the bonds were legally and factually offered to an indefinite number of persons and insofar as the interest resulting from the bonds is subject to either final taxation or to the special tax rate of 25 per cent. The Austrian Constitutional Court (Verfassungsgerichtshof) has recently declared the inheritance tax as unconstitutional. This decision will become effective on 1 August 2008. It remains to be seen whether the Austrian Parliament will reenact an inheritance tax in Austria and under what terms. Similar proceedings have in the meantime been commenced before the Austrian Constitutional Court regarding gift tax.
The Netherlands
The following is a summary of certain material Netherlands tax consequences of purchasing, owning and disposing of the Bonds. It does not purport to be a complete analysis of all possible tax situations that may be relevant to a decision to purchase, own or dispose of the Bonds. In particular, this discussion does not consider any specific facts or circumstances that may apply to a particular purchaser. This summary does not allow any conclusions to be drawn with respect to issues not specifically addressed. This summary is based on the laws of the Netherlands currently in force and as applied on the date of this prospectus, which are subject to change, possibly with retroactive or retrospective effect.
In the following, it is assumed that the holders of the Bonds do not hold a substantial interest in the Issuer. Generally speaking, an interest in the share capital of the Issuer should not be considered a substantial interest if the holder of such interest, and, if the holder is a natural person, his or her spouse, (registered) partner, certain other relatives or certain persons sharing the holders' household alone or together, does or do not hold, whether directly or indirectly, the ownership of, or certain rights over, shares or rights resembling shares representing five per cent. or more of the total issued and outstanding capital, or the issued and outstanding capital of any class of shares of the Issuer. Also, it is assumed that the Bonds and income received or capital gains derived therefrom, are not attributable to employment activities of the holder of the Bonds. Finally, it is assumed that the Bonds are issued under such terms and conditions that such Bonds cannot be classified as equity of the Issuer for Netherlands tax purposes or actually function as equity of the Issuer within the meaning of article 10 paragraph 1, letter d of the Netherlands Corporate Income Tax Act 1969 (Wet op de vennootschapsbelasting 1969).
Withholding tax
All payments made by the Issuer under the Bonds may be made free of withholding or deduction of, for or on account of any taxes of whatever nature imposed, levied, withheld or assessed by the Netherlands or any political subdivision or taxing authority thereof or therein.
Taxes on income and capital gains
A Bondholder will not be subject to Netherlands taxes on income or capital gains in respect of any payment under the Bonds or in respect of any gain realised on the disposal or deemed disposal of the Bonds, provided that:
(i) such holder is neither resident nor deemed to be resident of the Netherlands nor has made an election for the application of the rules of the Netherlands income tax act 2001 as they apply to residents in the Netherlands; and
(ii) such holder does not have an interest in an enterprise or deemed enterprise nor a co-entitlement to the net worth of such enterprise other than as a shareholder, which enterprise is, in whole or in part, carried on through a permanent establishment, a deemed permanent establishment or a permanent representative in the Netherlands and to which enterprise or part of an enterprise the Bonds are attributable; and
(iii) in the event the holder is an individual, such holder does not carry out any activities in the Netherlands that exceed regular asset management (normaal actief vermogensbeheer); and
(iv) in the event such holder is an individual, the Issuer does not make (part of) the proceeds of the Bonds, de - 33 - iure or de facto, directly or indirectly, available to (A) an entity in which such holder or any other individual related to such holder has a substantial interest or to (B) an enterprise or an activity taxed as an enterprise in which such holder or any other persons related to such holders has an interest.
Subject to above-mentioned condition (iv), a Bondholder will not become subject to Netherlands taxation on income or capital gains by reason only of the issue of the Bonds or the performance by the Issuer of its obligations thereunder.
Gift, estate and inheritance taxes
No Netherlands gift, estate or inheritance taxes will arise on the transfer of Bonds by way of gift by, or on the death of, a Bondholder who is neither resident nor deemed to be resident in the Netherlands, unless:
(i) such holder at the time of the gift has or at the time of his death had an enterprise or an interest in an enterprise that is or was, in whole or in part, carried on through a permanent establishment or a permanent representative in the Netherlands and to which enterprise or part of an enterprise the Bonds are or were attributable; or
(ii) in the case of a gift of the Bonds by an individual who at the date of the gift was neither resident nor deemed to be resident in the Netherlands, such individual dies within 180 days after the date of the gift, while being resident or deemed to be resident in the Netherlands.
Turnover tax
No Netherlands turnover tax will arise in respect of any payment in consideration for the issue or transfer of the Bonds or with respect to any payment by the Issuer of principal, interest or premium (if any) on the Bonds.
Other taxes
No Netherlands registration tax, transfer tax, stamp duty or any other similar documentary tax or duty will be payable by the Bondholders in respect of or in connection with the issue of the Bonds or the performance by the Issuer of its obligations thereunder.
- 34 -
SELLING RESTRICTIONS
General
Each of the Managers has agreed not to take any action and will not take any action in any jurisdiction that would permit a public offering of the Bonds, or possession or distribution of any offering material in relation thereto, in any country or jurisdiction where action for that purpose is required. The Managers will comply, to the best of their knowledge and belief, with all applicable laws and regulations (including any amendments, changes or modifications thereto from time to time) in each country or jurisdiction in which they purchase, offers, sell or deliver the Bonds or have in their possession or distribute such offering material and will obtain any consent, approval or permission required by them for the purchase, offer, sale or delivery by them in each such country or jurisdiction, in all cases at their own expense, and the Managers shall have no responsibility therefore. The Managers have not represented that the Bonds may at any time lawfully be sold in compliance with any applicable laws and regulations in any jurisdiction, or pursuant to any exemption thereunder, or assume any responsibility for facilitating such sale.
United States
The Bonds have not been and will not be registered under the Securities Act and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the Securities Act.
The Bonds are subject to U.S. tax law requirements and may not be offered, sold or delivered within the United States or its possessions or to a United States person, except in certain transactions permitted by U.S. tax regulations. Terms used in this paragraph have the meanings given to them by the U.S. Internal Revenue Code of 1986 and regulations thereunder.
The Managers have agreed that, they will not offer, sell or deliver the Bonds (a) as part of their distribution at any time or (b) otherwise until 40 days after the later of the commencement of the offering and the Issue Date within the United States or to, or for the account or benefit of, U.S. persons and that they will have sent to each manager to which they sell any Bonds during the distribution compliance period a confirmation or other notice setting forth the restrictions on offers and sales of the Bonds within the United States or to, or for the account or benefit of, U.S. persons. Terms used in this paragraph have the meanings given to them by Regulation S under the Securities Act.
In addition, until 40 days after the commencement of the offering, an offer or sale of the Bonds within the United States by any dealer that is not participating in the offering may violate the registration requirements of the Securities Act.
European Economic Area
In relation to each member state of the EEA which has implemented the Prospectus Directive (each, a "Relevant Member State"), each Manager has represented and agreed that with effect from, and including, the date on which the Prospectus Directive is implemented in that Relevant Member State (the "Relevant Implementation Date") it has not made and will not make an offer of the Bonds to the public in that Relevant Member State, except that it may, with effect from, and including, the Relevant Implementation Date, make an offer of the Bonds to the public in that Relevant Member State:
(a) in the period beginning on the date of publication of a prospectus in relation to the Bonds which has been approved by the competent authority in that Relevant Member State or, where appropriate, approved in another Relevant Member State and notified to the competent authority in that Relevant Member State, all in accordance with the Prospectus Directive and ending on the date which is twelve months after the date of such publication;
- 35 - (b) at any time to legal entities which are authorised or regulated to operate in the financial markets or, if not so authorised or regulated, whose corporate purpose is solely to invest in securities;
(c) at any time to any legal entity which has two or more of (1) an average of at least 250 employees during the last financial year; (2) a total balance sheet of more than Euro 43,000,000 and (3) an annual net turnover of more than Euro 50,000,000, as shown in its last annual or consolidated accounts; or
(d) at any time in any other circumstances which do not require the publication by the State of a prospectus pursuant to Article 3 of the Prospectus Directive or pursuant to any applicable national law of any Relevant Member State.
For the purposes of this provision, the expression "offer of the Bonds to the public" in relation to the Bonds in any Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and the Bonds to be offered so as to enable an investor to decide to purchase or subscribe the Bonds, as the same may be varied in that member state by any measure implementing the Prospectus Directive in that member state and the expression "Prospectus Directive" means Directive 2003/71/EC and includes any relevant implementing measure in each Relevant Member State.
United Kingdom
Each Manager has represented and agreed that:
(a) (i) it is a person whose ordinary activities involve it in acquiring, holding, managing or disposing of investments (as principal or agent) for the purposes of its business and (ii) it has not offered or sold and will not offer or sell the Bonds other than to persons whose ordinary activities involve them in acquiring, holding, managing or disposing of investments (as principal or as agent) for the purposes of their businesses or who it is reasonable to expect will acquire, hold, manage or dispose of investments (as principal or agent) for the purposes of their businesses where the issue of the Bonds would otherwise constitute a contravention of Section 19 of the Financial Services and Markets Act 2000 ("FSMA") by the Issuer;
(b) it has only communicated or caused to be communicated and will only communicate or cause to be communicated an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the FSMA) received by it in connection with the issue or sale of the Bonds in circumstances in which Section 21(1) of the FSMA does not apply to the Issuer or the Guarantor; and
(c) it has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the Bonds in, from or otherwise involving the United Kingdom.
The Netherlands
In relation to the Netherlands, each Manager has represented and agreed that it has not made and will not make an offer of Bonds to the public in the Netherlands except that it may make an offer of Bonds to the public in the Netherlands:
(i) in the period beginning on the date of publication of a prospectus in relation to those Bonds which has been approved by the competent authority in the Netherlands or, where appropriate, approved in another Member State and notified to the competent authority in that Member State, all in accordance with the Prospectus Directive and ending on the date which is 12 months after the date of such publication;
(ii) at any time in any other circumstances which do not require the publication by the Issuer of a prospectus pursuant to section 53 through 55 of the Exemption Regulation pursuant to the Act on the Financial Supervision (Vrijstellingsregeling Wet op het financieel toezicht);
- 36 - (iii) at any time in any other circumstances which do not require the publication by the Issuer of a prospectus pursuant to section 5:3 of the Act on the Financial Supervision (Wet op het financieel toezicht) and if the Bonds will only be offered to professional market parties within the meaning of section 1:1 Act on the Financial Supervision.
For the purposes of this provision, the expression an "offer of Bonds to the public" in relation to any Bonds in the Netherlands means the communication in any form and by any means of sufficient information on the terms of the offer and the Bonds to be offered so as to enable an investor to decide to purchase or subscribe the Bonds, as the same may be varied in that Member State by any measure implementing the Prospectus Directive in that Member State and the expression "Prospectus Directive" means Directive 2003/71/EC and includes any relevant implementing measure in each Member State.
- 37 - TERMS AND CONDITIONS OF THE BONDS
§1 (Currency. Denomination. Form. Clearing System. Bondholder.)
(1) Currency. Denomination. Form. The bonds (the "Bonds") of VERBUND-International Finance B.V. (the "Issuer") are issued in Euro (the "Currency") in an aggregate principal amount of Euro 500,000,000 (in words: five hundred million) on 25 June 2007 (the "Issue Date") and is divided in denominations of Euro 50,000 and integral multiples of Euro 1,000 in excess thereof (each a "Specified Denomination" and together the "Specified Denominations"). The Bonds are being issued in bearer form and will not be represented by definitive Bonds.
(2) Temporary Global Bond – Exchange.
(a) The Bonds are initially represented by a temporary global bond (the "Temporary Global Bond") without coupons which will be exchangeable for a permanent global bond (the "Permanent Global Bond" and, together with the Temporary Global Bond, each a "Global Bond") without coupons. Each Global Bond shall be signed manually by one authorised signatory of the Issuer and shall each be authenticated by or on behalf of the Fiscal Agent.
(b) The Temporary Global Bond shall be exchanged for the Permanent Global Bond on a date (the "Exchange Date") not earlier than 40 days and not later than 180 days after the Issue Date. Such exchange and any payment of interest on Bonds represented by a Temporary Global Bond shall only be made upon delivery of certifications to the effect that the beneficial owner or owners of the Bonds represented by the Temporary Global Bond is not a U.S. person as defined by the U.S. Securities Act of 1933. Any such certification received by the Fiscal Agent on or after the 40th day after the Issue Date will be treated as a request to exchange such Temporary Global Bond as described above. Any securities delivered in exchange for the Temporary Global Bond shall be delivered only outside of the United States.
(3) Clearing System. Each Global Bond will be kept in custody by or on behalf of the Clearing System until all obligations of the Issuer under the Bonds have been satisfied. "Clearing System" means each of the following: Clearstream Banking société anonyme, Luxembourg ("Clearstream Luxembourg") and Euroclear Bank S.A./N.V. ("Euroclear" and, together with Clearstream Luxembourg, the "ICSDs" and each an "ICSD") or any successor in this capacity. The Bondholders have claims to co-ownership shares of the respective Global Bond which may be transferred in accordance with the rules and regulations of the respective Clearing System. The Bonds are issued in "new global note" form and are kept in custody by a common safekeeper on behalf of both ICSDs.
(4) Bondholder. "Bondholder" means any holder of a proportionate co-ownership or other beneficial interest or right in the Bonds.
(5) Records of the ICSDs. The nominal amount of the Bonds represented by the Temporary Global Bond and the Permanent Global Bond shall be the aggregate amount from time to time entered in the records of both ICSDs. The records of the ICSDs (which expression means the records that each ICSD holds for its customers which reflect the amount of such customer's interest in the Bonds) shall be conclusive evidence of the nominal amount of the Bonds represented by the Temporary Global Bond and the Permanent Global Bond and, for these purposes, a statement issued by a ICSD stating the nominal amount of the Bonds so represented at any time shall be conclusive evidence of the records of the relevant ICSD at that time.
- 38 - On any redemption or payment of an instalment or interest being made in respect of, or purchase and cancellation of, any of the Bonds represented by the Temporary Global Bond and the Permanent Global Bond the Issuer shall procure that details of such redemption, payment or purchase and cancellation (as the case may be) in respect of the Temporary Global Bond and the Permanent Global Bond shall be entered pro rata in the records of the ICSDs and, upon any such entry being made, the nominal amount of the Bonds recorded in the records of the ICSDs and represented by the Temporary Global Bond and the Permanent Global Bond shall be reduced by the aggregate nominal amount of the Bonds so redeemed or purchased and cancelled or by the aggregate amount of such instalment so paid.
On an exchange of a portion only of the Bonds represented by a Temporary Global Bond, the Issuer shall procure that details of such exchange shall be entered pro rata in the records of the ICSDs.
§2 (Status. Negative Pledge. Guarantee)
(1) Status. The obligations under the Bonds constitute unsecured and unsubordinated obligations of the Issuer ranking pari passu among themselves and pari passu with all other unsecured and unsubordinated obligations of the Issuer, save for such obligations as may be preferred by mandatory provisions of law.
(2) Each of the Issuer and the Guarantor undertakes, as long as any Bonds are outstanding, but only up to the time all amounts of principal and interest have been placed at the disposal of one of the Paying Agents, not to create or permit to subsist any mortgage charge, pledge, lien or other encumbrance upon any or all of its present or future assets as security for any present or future Financial Indebtedness, or any guarantees or other indemnities in respect of any such Financial Indebtedness, without at the same time having the Bondholders' share equally and rateably in such security or such other security as shall be approved by an independent accounting firm of internationally recognised standing as being equivalent security.
(3) For purposes of these Terms and Conditions of the Bonds any "Financial Indebtedness" means any indebtedness of the Issuer or the Guarantor for or in respect of:
(a) moneys borrowed exceeding Euro 25,000,000 (or the equivalent amount in another currency);
(b) amounts raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or similar instruments;
(c) the amount exceeding Euro 25,000,000 (or the equivalent amount in another currency) of any liability in respect of leases or hire purchase contracts which would, in accordance with generally accepted accounting standards in the jurisdiction of incorporation of the lessee or International Financial Reporting Standards, as the case may be, be treated as finance or capital leases;
(d) amounts exceeding Euro 25,000,000 (or the equivalent amount in another currency) raised under any other transaction (including any forward sale or purchase agreement and the sale of receivables or other assets on a “with recourse” basis) having the commercial effect of a borrowing;
(e) any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative transaction, only the mark-to-market value shall be taken into account);
(f) any counter-indemnity obligation in respect of any guarantee, indemnity, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institution; and
(g) the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (a) to (f) above.
- 39 -
(4) Guarantee. Österreichische Elektrizitätswirtschafts-Aktiengesellschaft (the "Guarantor") has given its unconditional and irrevocable guarantee (the "Guarantee") for the due payment of principal of, and interest on, and any other amounts expressed to be payable under the Bonds. Under the Guarantee, each Bondholder may require performance of the Guarantee directly from the Guarantor and to enforce the Guarantee directly against the Guarantor. The Guarantee constitutes a direct, unconditional, unsubordinated and unsecured obligation of the Guarantor which rank and will at all times rank at least pari passu with all other present and future direct, unconditional, unsubordinated and unsecured obligations of the Guarantor, save for such obligations as may be preferred by mandatory provisions of law. Copies of the Guarantee may be obtained free of charge at the office of the Fiscal Agent set forth in § 9.
§3 (Interest)
(1) Rate of Interest and Interest Payment Dates. The Bonds shall bear interest on their principal amount at the rate of 5.00 per cent. per annum from and including 25 June 2007 (the "Interest Commencement Date") to but excluding the Maturity Date (as defined in §4(1)). Interest shall be payable in arrear on 25 June in each year (each such date, an "Interest Payment Date"). The first payment of interest shall be made on 25 June 2008 (the "First Interest Payment Date").
(2) "Interest Period" means the period from and including the Interest Commencement Date to, but excluding, the First Interest Payment Date and any subsequent period from and including an Interest Payment Date to, but excluding, the next Interest Payment Date.
(3) "Day Count Fraction", in respect of the calculation of an amount for any period of time (the "Calculation Period") means:
(a) where the Calculation Period is equal to or shorter than the Interest Period during which it falls, the actual number of days in the Calculation Period divided by the product of (i) the actual number of days in such Interest Period and (ii) the number of Interest Periods in any calendar year; and
(b) where the Calculation Period is longer than one Interest Period, the sum of: (i) the actual number of days in such Calculation Period falling in the Interest Period in which it begins divided by the product of (x) the actual number of days in such Interest Period and (y) the number of Interest Periods in any year; and (ii) the actual number of days in such Calculation Period falling in the next Interest Period divided by the product of (x) the actual number of days in such Interest Period and (y) the number of Interest Periods in any year.
(4) If the Issuer for any reason fails to render any payment in respect of the Bonds when due, interest shall continue to accrue at the default rate established by statutory law on the outstanding amount from (including) the due date to (excluding) the day on which such payment is received by or on behalf of the Bondholders.
§4 (Redemption)
(1) Final Redemption. The Bonds shall be redeemed at their Final Redemption Amount on 25 June 2014 (the "Maturity Date").
(2) Tax Call. The Bonds shall be redeemed at their Early Redemption Amount together with interest accrued to the date fixed for redemption at the option of the Issuer in whole, but not in part, on any Interest Payment Date upon giving not less than 30 days' notice to the Bondholders (which notice shall be irrevocable) by settlement in cash in accordance with §5 if; (i) on the occasion of the next payment or delivery due under the Bonds, the Issuer or the Guarantor has or will become obliged to pay additional amounts as provided or - 40 - referred to in §6 as a result of any change in, or amendment to, the laws or regulations of the Netherlands, the Republic of Austria ("Austria") or any political subdivision or any authority thereof or therein having power to tax, or any change in the application or official interpretation of such laws or regulations, which change or amendment becomes effective on or after the Issue Date; and (ii) such obligation cannot be avoided by the Issuer or the Guarantor taking reasonable measures (but no Substitution of the Issuer pursuant to §10) available to it. Before the publication of any notice of redemption pursuant to this paragraph, the Issuer shall deliver to the Fiscal Agent a certificate signed by an executive director of the Issuer stating that the Issuer is entitled to effect such redemption and setting forth a statement of facts showing that the conditions precedent to the right of the Issuer so to redeem have occurred, and an opinion of independent legal or tax advisers of recognised standing to the effect that the Issuer or the Guarantor has or will become obliged to pay such additional amounts as a result of such change or amendment.
(3) Redemption Amounts. For the purposes of this §4 and §8 (Events of Default) the following applies:
The "Final Redemption Amount" in respect of each Bond shall be its principal amount.
The "Early Redemption Amount" in respect of each Bond shall be its principal amount.
§5 (Payments)
(1) (a) Payment of Principal. Payment of principal in respect of Bonds shall be made, subject to applicable fiscal and other laws and regulations, in the Currency and to the Clearing System or to its order for credit to the accounts of the relevant account holders of the Clearing System upon presentation and surrender of the Global Bond at the specified office of any Paying Agent outside the United States.
(b) Payment of Interest. Payment of interest on Bonds shall be made, subject to applicable fiscal and other laws and regulations, in the Currency and to the Clearing System or to its order for credit to the relevant account holders of the Clearing System upon presentation of the Global Bond at the specified office of any Paying Agent outside the United States and upon delivery of certifications to the effect that the beneficial owners or owners of the Bonds represented by the Temporary Global Bond are not U.S. persons as defined by the U.S. Securities Act of 1933.
(2) Business Day. If the date for payment of any amount in respect of any Bond is not a Business Day then the Bondholder shall not be entitled to payment until the next Business Day in the relevant place and shall not be entitled to further interest or other payment in respect of such delay.
"Business Day" means a day on which (other than Saturday and Sunday) (a) banks are open for business (including dealings in foreign exchange and foreign currency deposits) in Vienna, Amsterdam and London and (b) all relevant parts of the Trans-European Automated Real-Time Gross Settlement Express Transfer System ("TARGET") are operating to effect payments in Euro.
(3) United States. "United States" means the United States of America including the States thereof and the District of Columbia and its possessions (including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the Northern Mariana Islands).
(4) Discharge. The Issuer or, as the case may be, the Guarantor, shall be discharged by payment to, or to the order of, the Clearing System.
(5) References to Principal and Interest. References to "principal" shall be deemed to include, as applicable the Final Redemption Amount of the Bonds; the Early Redemption Amount of the Bonds; and any premium and any other amounts which may be payable under or in respect of the Bonds. References to "interest" shall be deemed to include, as applicable, any Additional Amounts which may be payable under §6.
- 41 -
§6 (Taxation)
All payments of principal and interest in respect of the Bonds to the Bondholders shall be made free and clear of, and without withholding or deduction for, any taxes, duties, assessments or governmental charges of whatever nature imposed, levied, collected, withheld or assessed by or within the Netherlands, Austria or any authority therein or thereof having power to tax (a "Taxing Jurisdiction"), unless such withholding or deduction is required by law. In that event, the Issuer shall pay such additional amounts (the "Additional Amounts") as shall result in receipt by the Bondholders of such amounts as would have been received by them had no such withholding or deduction been required, except that no Additional Amounts shall be payable with respect to any Bond if:
(a) these are to be paid otherwise than by withholding or deduction at the source of payments under the Bonds; or
(b) a Bondholder who has no relationship to a Taxing Jurisdiction other than the mere holding of the Bonds, and is thus liable to pay duties and taxes; or
(c) these are being withheld in the Republic of Austria by a paying agent pursuant to § 95 Austrian Income Tax Act (Einkommensteuergesetz); or
(d) these are to be paid because of a change of law which will enter into force later than 30 days after the maturity date of the respective payment under the Bonds or, if payment is made later, after proper provision of all due amounts and a respective notice in accordance with § 12; or
(e) these are withheld or deducted after payment by the Issuer in the course of the transfer to the Bondholder; or
(f) these could be reclaimed pursuant to a double taxation treaty or the fiscal laws of a Taxing Jurisdiction or be dischargeable at the source due to community law (EU) provisions; or
(g) these are imposed or levied pursuant to or as a consequence of an international treaty to which a Taxing Jurisdiction is a party or a regulation or a directive on the basis of or as a consequence of such international treaty; or
(h) these were withheld or deducted by a Paying Agent pursuant to Council Directive 2003/48/EC of 3 June 2003 on the taxation of savings income in the form of interest payments or due to statutory or administrative provisions enacted for the implementation of this directive; or
(i) these are withheld or deducted by a Paying Agent, if such payment could have been effected by another Paying Agent without such withholding or deduction; or
(j) these would not have to be paid by a Bondholder if it could have obtained tax exemption, tax restitution or tax rebate in a reasonable way; or
(k) any combination of items (a)-(j); nor shall any Additional Amounts be paid with respect to any payment on a Bond to a Bondholder who is a fiduciary or partnership or who is other than the sole beneficial owner of such payment to the extent such payment would be required by the laws of the Taxing Jurisdiction to be included in the income, for tax purposes, of a beneficiary or settlor with respect to such fiduciary or a member of such partnership or a beneficial owner who would not have been entitled to such Additional Amounts had such beneficiary, settlor, member or beneficial owner been the Bondholder of the Bond. - 42 -
§7 (Prescription)
The presentation period provided in §801 paragraph 1, sentence 1 of the German Civil Code is reduced to ten years for the Bonds. The presentation period for the Bonds in connection with payments of interest provided in §801 paragraph 2, sentence 1 of the German Civil Code is four years.
§8 (Events of Default)
If any of the following events (each an "Event of Default") occurs, the holder of any Bond may by written notice to the Issuer at the specified office of the Fiscal Agent declare such Bond to be forthwith due and payable, whereupon the Early Redemption Amount of such Bond together with accrued interest to the date of payment shall become immediately due and payable, unless such Event of Default shall have been remedied prior to the receipt of such notice by the Issuer:
(a) any principal has not been paid within 7 days, or interest on the Bonds has not been paid within 30 days, following the due date for payment; or
(b) the Issuer breaches any provision of the Bonds which is materially prejudicial to the interests of the Bondholders and such breach has not been remedied within 60 days after the Issuer has received notice demanding redemption from Bondholders holding not less than 25 per cent. of the outstanding aggregate principal amount of the Bonds; or
(c) the Issuer or the Guarantor fails to fulfill any payment obligation in excess of Euro 10,000,000 or the equivalent thereof under any Financial Indebtedness or under any guarantees or suretyships given for any Financial Indebtedness of others within 30 days from its due date or, in the case of a guarantee or suretyship, within 30 days of such guarantee or suretyship being invoked, unless the Issuer or, as the case may be, the Guarantor contests in good faith that such payment obligation exists or is due or that such guarantee or suretyship has been validly invoked, or
(d) Austrian or Netherlands insolvency proceedings or similar proceedings in other jurisdictions are commenced by a court in the relevant place of jurisdiction against the Issuer or the Guarantor, as the case may be, as far as the occurrence thereof may be stipulated as an Event of Default; or
(e) the Issuer or the Guarantor becomes bankrupt, or an order is made or an effective resolution is passed for the winding up or liquidation of the Issuer or the Guarantor or any event which under the applicable laws of any jurisdiction has an analogous effect to such events (otherwise than in connection with a scheme of reconstruction, merger or amalgamation the terms of which have previously been approved by the Bondholders); or
(f) the Issuer or the Guarantor, as the case may be, ceases all or substantially all of its business operations or sells or disposes of its assets or the substantial part thereof and thus (i) diminishes considerably the value of its assets and (ii) for this reason it becomes likely that the Issuer may not fulfil its payment obligations against the Bondholders under the Bonds or, in the event of the Guarantor, it becomes likely that the Guarantor (or a successor to the Guarantor pursuant to a merger or acquisition) may not fulfil its payment obligations against the Bondholders under the Guarantee; or
(g) a distress, attachment, execution or other legal process is levied, enforced or sued out on or against any part of the property, assets or revenues of the Issuer or the Guarantor (Enforcement Proceedings); or
(h) any mortgage, charge, pledge, lien or other encumbrance, present or future, created or assumed by the Issuer or the Guarantor, in respect of any indebtedness in an aggregate principal amount in excess of - 43 - Euro 25,000,000 or its equivalent (on the basis of the middle spot rate for the relevant currency against the Euro as quoted by any leading bank on the day on which this paragraph operates) becomes enforceable and any step is taken to enforce it (including the taking of possession or the appointment of a receiver, manager or other similar person) (Security Enforced); or
(i) it is or will become unlawful for the Issuer or the Guarantor to perform or comply with any one or more of its obligations under any of the Bonds (Illegality); or
(j) the Issuer gives a notice under Section 36 of the Dutch Tax Collection Act 1990 (Invorderingswet 1990) or under Section 16d of the Dutch Social Insurances Coordination Act (Coördinatiewet Sociale Verzekeringen).
§9 (Agents)
(1) Appointment. The Fiscal Agent and the Paying Agents (together the "Agents") and their offices (which can be substituted with other offices in the same city) are:
Fiscal Agent: Citibank, N.A. Agency and Trust 21st floor, Citigroup Centre Canada Square, Canary Wharf London E14 5LB England
Paying Agents: Dexia Banque International à Luxembourg 69, route d’Esch 2953 Luxembourg Luxembourg
Citibank International plc Austria Branch Am Kärntner Ring 11-13 1010 Vienna Austria
(2) Variation or Termination of Appointment. The Issuer reserves the right at any time to vary or terminate the appointment of any Agent and to appoint another Fiscal Agent or additional or other Paying Agents provided that the Issuer shall at all times (i) maintain a Fiscal Agent, (ii) so long as the Bonds are listed on a regulated market of a stock exchange, a Paying Agent (which may be the Fiscal Agent) with a specified office in such place as may be required by the rules of such stock exchange, and (iii) if a Directive of the European Union regarding the taxation of interest income or any law implementing such Directive is introduced, ensure that it maintains a Paying Agent in a Member State of the European Union that will not be obliged to withhold or deduct tax pursuant to any such Directive or law, to the extent this is possible in a Member State of the European Union. Any variation, termination, appointment or change shall only take effect (other than in the case of insolvency, when it shall be of immediate effect) after not less than 30 nor more than 45 days' prior notice thereof shall have been given to the Bondholders in accordance with §12.
(3) Agent of the Issuer. Any Agent acts solely as the agent of the Issuer and does not assume any obligations towards or relationship of agency or trust for any Bondholder.
(4) The Paying Agents shall not have any responsibility in respect of any error or omission or subsequent correcting made in the calculation or publication of any amount in relation to the Bonds, whether caused by negligence or otherwise (other than gross negligence or willful misconduct). - 44 -
§10 (Substitution of the Issuer)
(1) The Issuer (reference to which shall always include any previous substitute debtor) may and the Bondholders hereby irrevocably agree in advance that the Issuer may without any further prior consent of any Bondholder at any time, substitute for the Issuer any Affiliate (as defined below) of the Guarantor as the principal debtor in respect of the Bonds or undertake its obligations in respect of the Bonds through any of its branches (any such company or branch, the "Substitute Debtor"), provided that:
(a) such documents shall be executed by the Substituted Debtor and the Issuer as may be necessary to give full effect to the substitution (together the "Documents") and pursuant to which the Substitute Debtor shall undertake in favour of each Bondholder to be bound by these Terms and Conditions of the Bonds and the provisions of the Agency Agreement as fully as if the Substitute Debtor had been named in the Bonds and the Agency Agreement as the principal debtor in respect of the Bonds in place of the Issuer and pursuant to which the Issuer and the Guarantor (if the Guarantor is not the Substituted Debtor) shall irrevocably and unconditionally guarantee in favour of each Bondholder the payment of all sums payable by the Substitute Debtor as such principal debtor (such guarantee of the Issuer herein referred to as the "Substitution Guarantee");
(b) the Documents shall contain a warranty and representation by the Substitute Debtor and the Issuer that the Substitute Debtor and the Issuer have obtained all necessary governmental and regulatory approvals and consents for such substitution and for the giving by the Issuer of the Substitution Guarantee in respect of the obligations of the Substitute Debtor, that the Substitute Debtor has obtained all necessary governmental and regulatory approvals and consents for the performance by the Substitute Debtor of its obligations under the Documents and that all such approvals and consents are in full force and effect and that the obligations assumed by the Substitute Debtor and the Substitution Guarantee given by the Issuer are each valid and binding in accordance with their respective terms and enforceable by each Bondholder and that, in the case of the Substitute Debtor undertaking its obligations with respect to the Bonds through a branch, the Bonds remain the valid and binding obligations of such Substitute Debtor;
(c) §8 shall be deemed to be amended so that it shall also be an Event of Default under the said Condition if the Substitution Guarantee shall cease to be valid or binding on or enforceable against the Issuer; and
(d) there shall have been delivered to the Fiscal Agent one opinion for each jurisdiction affected of lawyers of recognised standing to the effect that sub-paragraphs (a), (b) and (c) above have been satisfied.
For purposes of this §10, "Affiliate" shall mean any enterprise which has its seat within the European Union and of which more than 90 per cent. of the voting stock is held directly or indirectly by the Guarantor.
(2) Upon the Documents becoming valid and binding obligations of the Substitute Debtor and the Issuer and subject to notice having been given in accordance with sub-paragraph (4) below, the Substitute Debtor shall be deemed to be named in the Bonds as the principal debtor in place of the Issuer as issuer and the Bonds shall thereupon be deemed to be amended to give effect to the substitution including that the relevant jurisdiction in §6 shall be the jurisdiction of incorporation of the Substitute Debtor. The execution of the Documents together with the notice referred to in sub-paragraph (4) below shall, in the case of the substitution of any other company as principal debtor, operate to release the Issuer as issuer from all of its obligations as principal debtor in respect of the Bonds.
(3) The Documents shall be deposited with and held by the Fiscal Agent for so long as any Bonds remain - 45 - outstanding and for so long as any claim made against the Substitute Debtor or the Issuer by any Bondholder in relation to the Bonds or the Documents shall not have been finally adjudicated, settled or discharged. The Substitute Debtor and the Issuer acknowledge the right of every Bondholder to the production of the Documents for the enforcement of any of the Bonds or the Documents.
(4) Not later than 15 Business Days after the execution of the Documents, the Substitute Debtor shall give notice thereof to the Bondholders and, if any Bonds are listed on any stock exchange, to such stock exchange in accordance with §13 and to any other person or authority as required by applicable laws or regulations.
(5) For the purposes of this §10, the term 'control' means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a company, whether by contract or through the ownership, directly or indirectly, of voting shares in such company which, in the aggregate, entitle the holder thereof to elect a majority of its directors, and includes any company in like relationship to such first-mentioned company, and for this purpose 'voting shares' means shares in the capital of a company having under ordinary circumstances the right to elect the directors thereof, and 'controlling', 'controlled' and 'under common control' shall be construed accordingly.
§11 (Further Issues. Purchases. Cancellation)
(1) Further Issues. The Issuer may from time to time without the consent of the Bondholders create and issue further Bonds having the same terms and conditions as the Bonds (except for the Issue Price, the Issue Date, the Interest Commencement Date and the first Interest Payment Date) and so that the same shall be consolidated and form a single Series with such Bonds, and references to "Bonds" shall be construed accordingly.
(2) Purchases. The Issuer may at any time purchase Bonds at any price in the open market or otherwise. If purchases are made by tender, tenders must be available to all Bondholders alike. Such Bonds may be held, reissued, resold or cancelled, all at the option of the Issuer.
(3) Cancellation. All Bonds redeemed in full shall be cancelled forthwith and may not be reissued or resold.
§12 (Notices)
(1) Publication. All notices concerning the Bonds shall be published and in a leading daily newspaper having general circulation in Luxembourg and in Austria. This newspaper is expected to be the d’Wort with regard to Luxembourg and the Amtsblatt zur Wiener Zeitung with regard to Austria. Any notice so given will be deemed to have been validly given on the fifth day following the date of such publication (or, if published more than once, on the fifth day following the first such publication).
(2) Notification to Clearing System. The Issuer may, instead of a publication pursuant to subparagraph (1) above, deliver the relevant notice to the Clearing System, for communication by the Clearing System to the Bondholders, provided that, so long as any Bonds are listed on any stock exchange, the rules of such stock exchange permit such form of notice. Any such notice shall be deemed to have been given to the Bondholders on the fifth day after the day on which the said notice was given to the Clearing System.
§13 (Governing Law, Jurisdiction, Enforcement and Appointment of Process Agent)
(1) Governing Law. The Bonds shall be governed by German law.
(2) Jurisdiction. The exclusive place of jurisdiction for all proceedings arising out of or in connection with the - 46 - Bonds ("Proceedings") shall be Frankfurt am Main. The Holders, however, may also pursue their claims before any other court of competent jurisdiction. The Issuer hereby submits to the jurisdiction of the courts referred to in this subparagraph.
(3) Enforcement. Any holder of Bonds may in any proceedings against the Issuer, or to which such Bondholder and the Issuer are parties, protect and enforce in his own name his rights arising under such Bonds on the basis of (i) a statement issued by the Custodian with whom such Bondholder maintains a securities account in respect of the Bonds (a) stating the full name and address of the Bondholder, (b) specifying the aggregate principal amount of Bonds credited to such securities account on the date of such statement and (c) confirming that the Custodian has given written notice to the Clearing System containing the information pursuant to (a) and (b) and (ii) a copy of the Bond in global form certified as being a true copy by a duly authorised officer of the Clearing System or a depository of the Clearing System, without the need for production in such proceedings of the actual records or the global bond representing the Bonds. "Custodian" means any bank or other financial institution of recognised standing authorised to engage in securities custody business with which the Holder maintains a securities account in respect of the Bonds and includes the Clearing System. Each Bondholder may, without prejudice to the foregoing, protect and enforce his rights under these Bonds also in any other manner permitted in the country of the proceedings.
(4) Appointment of Process Agent. For any Proceedings before German courts, each of the Issuer and the Guarantor appoints APT-Austrian Power Trading Deutschland GmbH, Sonnenstraße 17, 80331 Munich, Germany, as its authorised agent for service of process in Germany.
§14 (Language)
These Terms and Conditions of the Bonds are written in the German language and provided with an English language translation. The German text shall be controlling and binding. The English language translation is provided for convenience only.
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ANLEIHEBEDINGUNGEN
§1 (Währung. Stückelung. Form. Clearing Systeme. Anleihegläubiger)
(1) Währung. Stückelung. Form. Die Schuldverschreibungen (die "Schuldverschreibungen") der VERBUND- International Finance B.V. (die "Anleiheschuldnerin") werden in Euro (die "Währung") im Gesamtnennbetrag von Euro 500.000.000 (in Worten: fünfhundert Millionen) am 25. Juni 2007 (der "Begebungstag") begeben und sind eingeteilt in Stückelungen von Euro 50.000 und darüber hinaus mit einer Stückelung von Euro 1.000 oder einem Vielfachen davon (jeweils ein "Nennbetrag" und zusammen die "Nennbeträge"). Die Schuldverschreibungen lauten auf den Inhaber und die Ausstellung effektiver Schuldverschreibungen ist ausgeschlossen.
(2) Vorläufige Globalurkunde - Austausch.
(a) Die Schuldverschreibungen sind anfänglich durch eine vorläufige Globalurkunde (die "vorläufige Globalurkunde") ohne Zinsscheine verbrieft, die gegen eine Dauerglobalurkunde (die "Dauerglobalurkunde" und zusammen mit der vorläufigen Globalurkunde jeweils eine "Globalurkunde") ohne Zinsscheine austauschbar sein wird. Jede Globalurkunde trägt die eigenhändige Unterschrift eines ordnungsgemäß bevollmächtigten Vertreters der Anleiheschuldnerin und ist mit einer Kontrollunterschrift der Hauptzahlstelle versehen.
(b) Die vorläufige Globalurkunde wird an einem Tag (der "Austauschtag") gegen die Dauerglobalurkunde ausgetauscht, der nicht weniger als 40 Tage und nicht mehr als 180 Tage nach dem Begebungstag liegt. Der Austausch und jede Zahlung von Zinsen für die vorläufige Globalurkunde sollen nur nach Vorlage von Bescheinigungen erfolgen, wonach die wirtschaftlichen Eigentümer oder die Eigentümer der Schuldverschreibungen, die durch die vorläufige Globalurkunde verbrieft sind, keine U.S.-Personen, wie im U.S. Securities Act von 1933 festgelegt, sind. Jede dieser Bescheinigungen, die am oder nach dem 40. auf den Begebungstag folgenden Tag eingeht, wird als Ersuchen behandelt werden, die vorläufige Globalurkunde wie oben beschrieben auszutauschen. Wertpapiere, die im Austausch für die vorläufige Globalurkunde geliefert werden, sind nur außerhalb der Vereinigten Staaten zu liefern.
(3) Clearing System. Jede Dauerglobalurkunde wird so lange von einem oder im Namen eines Clearing Systems verwahrt werden, bis sämtliche Verbindlichkeiten der Anleiheschuldnerin aus den Schuldverschreibungen erfüllt sind. "Clearing System" bedeutet jeweils folgendes: Clearstream Banking société anonyme, Luxembourg ("Clearstream Luxemburg") und Euroclear Bank S.A./N.V. ("Euroclear" und zusammen mit Clearstream Luxemburg die "ICSDs" und jeweils ein "ICSD") oder jeder Rechtsnachfolger. Den Anleihegläubigern stehen Miteigentumsanteile an der jeweiligen Globalurkunde zu, die gemäß den Regelungen und Bestimmungen des jeweiligen Clearing Systems übertragen werden können. Die Schuldverschreibungen werden in Form einer neuen Globalurkunde (new global note) ausgegeben und von einem common safekeeper im Name beider ICSDs verwahrt.
(4) Anleihegläubiger. "Anleihegläubiger" bezeichnet jeden Inhaber eines Miteigentumsanteils oder anderen Rechts an den Schuldverschreibungen.
(5) Register der ICSDs. Der Nennbetrag der durch die Vorläufige Globalurkunde und die Dauerglobalurkunde verbrieften Schuldverschreibungen entspricht dem jeweils in den Registern beider ICSDs eingetragenen Gesamtbetrag. Die Register der ICSDs (unter denen man die Register versteht, die jeder ICSD für seine Kunden über den Betrag ihres Anteils an den Schuldverschreibungen führt) sind schlüssiger Nachweis über den Nennbetrag der durch die Vorläufige Globalurkunde und die Dauerglobalurkunde verbrieften
- 48 - Schuldverschreibungen, und ein zu diesen Zwecken von einem ICSD jeweils ausgestellte Bestätigung mit dem Nennbetrag der so verbrieften Schuldverschreibungen ist ein schlüssiger Nachweis über den Inhalt des Registers des jeweiligen ICSD zu diesem Zeitpunkt.
Bei Rückzahlung oder Zahlung einer Rate oder einer Zinszahlung bezüglich der durch die Vorläufige Globalurkunde und die Dauerglobalurkunde verbrieften Schuldverschreibungen bzw. bei Kauf und Entwertung der durch die Vorläufige Globalurkunde und die Dauerglobalurkunde verbrieften Schuldverschreibungen stellt die Emittentin sicher, dass die Einzelheiten über Rückzahlung und Zahlung bzw. Kauf und Löschung bezüglich der Vorläufigen Globalurkunde und der Dauerglobalurkunde pro rata in die Unterlagen der ICSDs eingetragen werden, und dass, nach dieser Eintragung, vom Nennbetrag der in die Register der ICSDs aufgenommenen und durch die Vorläufige Globalurkunde und die Dauerglobalurkunde verbrieften Schuldverschreibungen der Gesamtnennbetrag der zurückgekauften bzw. gekauften und entwerteten Schuldverschreibungen bzw. der Gesamtbetrag der so gezahlten Raten abgezogen wird.
Bei Austausch eines Anteils von ausschließlich durch die vorläufige Globalurkunde verbriefte Schuldverschreibungen wird die Emittentin sicherstellen, dass die Einzelheiten dieses Austauschs pro rata in die Aufzeichnungen der ICSDs aufgenommen werden.
§2 (Status. Negativverpflichtung. Garantie)
(1) Status. Die Verpflichtungen aus den Schuldverschreibungen begründen unbesicherte und nicht nachrangige Verbindlichkeiten der Anleiheschuldnerin, die untereinander und mit allen anderen unbesicherten und nicht nachrangigen Verbindlichkeiten der Anleiheschuldnerin gleichrangig sind.
(2) Negativverpflichtung. Die Emittentin und die Garantin verpflichten sich, solange Schuldverschreibungen ausstehen, jedoch nur bis zu dem Zeitpunkt, an dem alle Beträge an Kapital und Zinsen einer der Zahlstellen zur Verfügung gestellt worden sind, keine gegenwärtigen oder zukünftigen Finanziellen Verbindlichkeiten und keine Garantien oder andere Gewährleistungen für solche Finanziellen Verbindlichkeiten durch Grund- oder Mobiliarpfandrechte oder sonstige dingliche Sicherungsrechte oder sonstige Belastungen von Teilen ihres Vermögens oder ihres Vermögens insgesamt zu besichern, ohne jeweils die Anleihegläubiger zur gleichen Zeit und im gleichen Rang an solchen Sicherheiten oder an solchen anderen Sicherheiten, die von einer international anerkannten unabhängigen Wirtschaftsprüfungsgesellschaft als gleichwertige Sicherheit anerkannt werden, teilhaben zu lassen.
(3) Im Sinne dieser Anleihebedingungen bezeichnet jede "Finanzielle Verbindlichkeit" jede Verbindlichkeit der Emittentin oder Garantin, die sich aus einem der nachfolgenden Sachverhalte ergibt oder sich darauf bezieht:
(a) aufgenommene Gelder ab einem Schwellenwert von Euro 25.000.000 (oder dem entsprechenden Gegenwert in einer anderen Währung);
(b) Beträge, die durch die Ausgabe von Schuldverschreibungen, Obligationen, Obligationsanleihen oder vergleichbaren Instrumenten aufgenommen wurden;
(c) der Betrag ab einem Schwellenwert von Euro 25.000.000 (oder dem entsprechenden Gegenwert in einer anderen Währung) jeder Verbindlichkeit aus Leasingverträgen oder Abzahlungsverträgen, die in Übereinstimmung mit den anerkannten Grundsätzen der Rechnungslegung in der Rechtsordnung der Gründung des Leasingnehmers oder gemäß den International Financial Reporting Standards (je nachdem, was zutrifft) als Finanzierungsleasing oder Capital-Leasing behandelt werden;
(d) Beträge ab einem Schwellenwert Euro 25.000.000 (oder dem entsprechenden Gegenwert in einer anderen Währung), die gemäß einem anderen Rechtsgeschäft (einschließlich eines Terminverkauf-
- 49 - oder -kaufvertrages und des Verkaufs von Forderungen oder anderer Vermögenswerte auf Grundlage einer Rückgriffsmöglichkeit) aufgenommen werden, dessen wirtschaftliche Wirkung einer Kreditaufnahme gleichkommt;
(e) jede Transaktion mit Derivaten, die zum Schutz gegen die oder zur Erlangung von Vorteilen aus der Schwankung eines Kurses, Zinssatzes oder Preises abgeschlossen wird (wobei bei der Berechnung des Wertes einer Transaktion mit Derivaten nur der Marktbewertungsansatz berücksichtigt wird);
(f) jede Rückdeckungsverpflichtung im Hinblick auf eine Garantie, Freistellung, Kaution, einen Standby-Letter of Credit oder ein Dokumentenakkreditiv, oder ein anderes von einer Bank oder einem Finanzinstitut ausgegebenes Instrument; und
(g) der Betrag der Verbindlichkeit aus einer Garantie oder Freistellung, die im Hinblick auf einen der in den vorstehenden Absätzen (a) bis (f) aufgeführten Sachverhalte abgegeben worden ist.
(4) Garantie. Österreichische Elektrizitätswirtschafts-Aktiengesellschaft (die "Garantin") hat eine unbedingte und unwiderrufliche Garantie (die "Garantie") für die vertragsgemäße Zahlung von Kapital und Zinsen sowie sonstiger auf die Schuldverschreibungen zahlbarer Beträge übernommen. Die Garantie begründet unmittelbar gegen die Garantin bestehende und durchsetzbare Ansprüche der Anleihegläubiger. Die Garantie begründet unmittelbare, unbedingte, nichtnachrangige und unbesicherte Verbindlichkeiten der Garantin, die jederzeit zumindest gleichrangig sind mit allen sonstigen gegenwärtigen und zukünftigen unmittelbaren, unbedingten, nicht-nachrangigen und unbesicherten Verbindlichkeit der Garantin, mit Ausnahme solcher Verbindlichkeiten, die kraft zwingender gesetzlicher Bestimmungen vorrangig sind. Kopien der Garantie sind kostenlos bei der in §9 bezeichneten Geschäftsstelle des Fiscal Agent erhältlich.
§3 (Zinsen)
(1) Zinssatz und Zinszahltage. Die Schuldverschreibungen werden bezogen auf ihren jeweiligen Nennbetrag mit jährlich 5,00 % ab dem 25. Juni 2007 (einschließlich) (der "Verzinsungsbeginn") bis zum Fälligkeitstag (wie in §4 (1) definiert) (ausschließlich) verzinst. Die Zinsen sind nachträglich am 25. Juni eines jeden Jahres (jeweils ein "Zinszahltag") zahlbar. Die erste Zinszahlung erfolgt am 25. Juni 2008 (der "erste Zinszahltag").
(2) "Zinsperiode" bedeutet den Zeitraum vom Verzinsungsbeginn (einschließlich) bis zum ersten Zinszahltag (ausschließlich) und jeden weiteren Zeitraum von einem Zinszahltag (einschließlich) bis zum folgenden Zinszahltag (ausschließlich).
(3) "Zinstagequotient" bezeichnet im Hinblick auf die Berechnung eines Betrages für einen beliebigen Zeitraum (der "Zinsberechnungszeitraum"):
(a) Falls der Zinsberechnungszeitraum gleich oder kürzer als die Zinsperiode ist, innerhalb welche er fällt, die tatsächliche Anzahl von Tagen im Zinsberechnungszeitraum, dividiert durch das Produkt (i) der tatsächlichen Anzahl von Tagen in der jeweiligen Zinsperiode und (ii) der Anzahl der Zinsperioden in einem Jahr.
(b) Falls der Zinsberechnungszeitraum länger als eine Zinsperiode ist, die Summe: (i) der tatsächlichen Anzahl von Tagen in demjenigen Zinsberechnungszeitraum, der in die Zinsperiode fällt, in der er beginnt, geteilt durch das Produkt aus (x) der tatsächlichen Anzahl von Tagen in dieser Zinsperiode und (y) der Anzahl von Zinsperioden in einem Jahr, und (ii) der tatsächlichen Anzahl von Tagen in demjenigen Zinsberechnungszeitraum, der in die nächste Zinsperiode fällt, geteilt durch das Produkt aus (x) der tatsächlichen Anzahl von Tagen in dieser Zinsperiode und (y) der Anzahl von Zinsperioden in einem Jahr.
- 50 -
(4) Wenn die Anleiheschuldnerin eine fällige Zahlung auf die Schuldverschreibungen aus irgendeinem Grund nicht leistet, wird der ausstehende Betrag von dem Fälligkeitstag (einschließlich) bis zum Tag der vollständigen Zahlung an die Gläubiger (ausschließlich) mit dem gesetzlich bestimmten Verzugzins verzinst.
§4 (Rückzahlung)
(1) Rückzahlung bei Endfälligkeit. Die Schuldverschreibungen werden mit ihrem Rückzahlungsbetrag am 25. Juni 2014 (der "Fälligkeitstag") zurückgezahlt.
(2) Vorzeitige Rückzahlung aus steuerlichen Gründen. Die Schuldverschreibungen werden auf Wunsch der Emittentin vollständig, aber nicht teilweise, an jedem beliebigen Zinszahlungstag jederzeit zu ihrem vorzeitigen Rückzahlungsbetrag einschließlich der bis zu dem für die Rückzahlung festgelegten Tag aufgelaufenen Zinsen gemäß §5 zurückgezahlt, nachdem die Anleiheschuldnerin die Anleihegläubiger mindestens 30 Tage zuvor über die entsprechende Absicht unwiderruflich informiert hat, vorausgesetzt (i) die Anleiheschuldnerin oder die Garantin ist zum nächstfolgenden Termin einer fälligen Zahlung bzw. Lieferung unter den Schuldverschreibungen verpflichtet, bzw. wird dazu verpflichtet sein, in Folge einer Änderung oder Ergänzung der Gesetze und Verordnungen der Niederlande, der Republik Österreich ("Österreich") oder einer jeweils zur Steuererhebung ermächtigten Gebietskörperschaft oder Behörde, oder Änderungen in der Anwendung oder offiziellen Auslegung solcher Gesetze und Verordnungen, sofern die entsprechende Änderung am oder nach dem Begebungstag wirksam wird, zusätzliche Beträge gemäß §7 zu zahlen, und (ii) eine solche Verpflichtung seitens der Anleiheschuldnerin oder der Garantin nicht durch angemessene ihr zur Verfügung stehenden Maßnahmen vermieden werden kann (jedoch nicht durch Ersetzung der Anleiheschuldnerin gemäß §10). Vor Bekanntgabe einer Mitteilung über eine Rückzahlung gemäß diesen Bestimmungen hat die Anleiheschuldnerin der Hauptzahlstelle eine von einem Mitglied der Geschäftsführung der Anleiheschuldnerin unterzeichnete Bescheinigung zukommen zu lassen, der zufolge die Anleiheschuldnerin berechtigt ist, eine entsprechende Rückzahlung zu leisten, und in der nachvollziehbar dargelegt ist, dass die Bedingungen für das Recht der Anleiheschuldnerin zur Rückzahlung gemäß diesen Bestimmungen erfüllt sind; zusätzlich hat die Anleiheschuldnerin ein von unabhängigen Rechts- oder Steuerberatern erstelltes Gutachten vorzulegen, demzufolge die Anleiheschuldnerin oder die Garantin in Folge einer entsprechenden Änderung oder Ergänzung zur Zahlung zusätzlicher Beträge verpflichtet ist oder sein wird.
(3) Rückzahlungsbeträge. Innerhalb dieses §4 und §8 (Kündigungsgründe) gilt folgendes:
Der "Rückzahlungsbetrag" jeder Schuldverschreibung ist ihr jeweiliger Nennbetrag.
Der "vorzeitige Rückzahlungsbetrag" jeder Schuldverschreibung ist ihr jeweiliger Nennbetrag.
§5 (Zahlungen)
(1) (a) Zahlungen auf Kapital. Zahlungen von Kapital auf die Schuldverschreibungen erfolgen nach Maßgabe der anwendbaren steuerlichen und sonstigen Gesetze und Vorschriften in der festgelegten Währung an das Clearing System oder dessen Order zur Gutschrift auf den Konten der betreffenden Kontoinhaber bei dem Clearingsystem gegen Vorlage und Einreichung der Globalurkunde bei der bezeichneten Geschäftsstelle einer der Zahlstellen außerhalb der Vereinigten Staaten.
(b) Zahlung von Zinsen. Zahlungen von Zinsen auf die Schuldverschreibungen erfolgen nach Maßgabe der anwendbaren steuerlichen und sonstiger Gesetze und Vorschriften in der festgelegten Währung an das Clearing System oder dessen Order zur Gutschrift auf den Konten der betreffenden Kontoinhaber bei dem Clearingsystem gegen Vorlage und Einreichung der Globalurkunde bei der bezeichneten Geschäftsstelle einer der Zahlstellen außerhalb der Vereinigten Staaten und gegen
- 51 - Vorlage von Bescheinigungen, wonach die wirtschaftlichen Eigentümer oder die Eigentümer der Schuldverschreibungen, die durch die vorläufige Globalurkunde verbrieft sind, keine U.S.-Personen, wie im U.S. Securities Act von 1933 festgelegt, sind.
(2) Geschäftstag. Fällt der Fälligkeitstag einer Zahlung in bezug auf eine Schuldverschreibung auf einen Tag, der kein Geschäftstag ist, hat der Anleihegläubiger keinen Anspruch auf Zahlung vor dem nächsten Geschäftstag am jeweiligen Ort und ist nicht berechtigt, zusätzliche Zinsen oder sonstige Zahlungen auf Grund dieser Verspätung zu verlangen.
"Geschäftstag" ist jeder Tag (außer einem Samstag und einem Sonntag) an dem (a) die Banken in Wien, Amsterdam und London (die "Maßgeblichen Finanzzentren") für Geschäfte (einschließlich Devisenhandelsgeschäfte und Fremdwährungseinlagengeschäfte) geöffnet sind und (b) alle für die Abwicklung von Zahlungen in Euro wesentlichen Teile des Trans-European Automated Real-Time Gross Settlement Express Transfer Systems ("TARGET") in Betrieb sind.
(3) Vereinigte Staaten. "Vereinigte Staaten" sind die Vereinigten Staaten von Amerika, einschließlich deren Bundesstaaten und des Districts of Columbia und deren Besitztümer (einschließlich Puerto Rico, die U.S. Virgin Islands, Guam, American Samoa, Wake Island und die Northern Mariana Islands).
(4) Erfüllung. Die Emittentin oder die Garantin wird durch Zahlung an oder an die Order des Clearing Systems von ihren Zahlungsverpflichtungen befreit.
(5) Bezugnahmen auf Kapital und Zinsen. Bezugnahmen in diesen Anleihebedingungen auf "Kapital" schließen, soweit anwendbar, den Rückzahlungsbetrag, den Vorzeitigen Rückzahlungsbetrag sowie jeden Aufschlag sowie sonstige auf oder in bezug auf die Schuldverschreibungen zahlbaren Beträge ein. Bezugnahmen auf "Zinsen" schließen, soweit anwendbar, alle nach §6 zahlbaren zusätzlichen Beträge mit ein.
§6 (Besteuerung)
Alle in Bezug auf die Schuldverschreibungen an die Anleihegläubiger zahlbaren Kapital- oder Zinsbeträge werden ohne Einbehalt oder Abzug an der Quelle für oder wegen gegenwärtiger oder zukünftiger Steuern, Abgaben oder Gebühren bzw. Veranlagungen gleich welcher Art gezahlt, die von den Niederlanden, Österreich oder einer politischen Untergliederung oder einer Steuerbehörde dieser Staaten (jeweils eine "Steuerjurisdiktion") im Wege des Einbehalts oder des Abzugs auferlegt, einbehalten oder erhoben werden, es sei denn, ein solcher Abzug oder Einbehalt oder Abzug ist gesetzlich vorgeschrieben. In diesem Fall wird die Emittentin diejenigen zusätzlichen Beträge ("Zusätzliche Beträge") zahlen, die erforderlich sind, damit die den Anleihegläubigern zufließenden Nettobeträge nach diesem Einbehalt oder Abzug jeweils den Beträgen an Kapital und Zinsen entsprechen, die ohne einen solchen Einbehalt oder Abzug oder Einbehalt von den Anleihegläubigern erhalten worden wären; jedoch sind solche Zusätzlichen Beträge nicht zu zahlen, falls:
(a) diese auf andere Weise als durch Abzug oder Einbehalt an der Quelle aus Zahlungen auf die Teilschuldverschreibungen zu entrichten sind; oder
(b) ein Anleihegläubiger, der zu einer Steuerjurisdiktion eine andere aus steuerlicher Sicht relevante Verbindung hat, als den bloßen Umstand, dass er Inhaber der Teilschuldverschreibungen ist oder dies zum Zeitpunkt des Erwerbs der Teilschuldverschreibungen war, der Abgaben- oder Steuerpflicht unterliegt; oder
(c) diese gemäß § 95 Einkommensteuergesetz in der Republik Österreich von einer Zahlstelle einbehalten werden; oder
(d) diese aufgrund einer Rechtsänderung zahlbar sind, die später als 30 Tage nach Fälligkeit der betreffenden Zahlung auf die Teilschuldverschreibungen oder, wenn dies später erfolgt, nach ordnungsgemäßer - 52 - Bereitstellung aller fälligen Beträge und einer diesbezüglichen Bekanntmachung gemäß § 12 der Anleihebedingungen wirksam wird; oder
(e) diese nach Zahlung durch die Emittentin im Rahmen des Transfers an den Anleihegläubiger abgezogen oder einbehalten werden; oder
(f) aufgrund eines Doppelbesteuerungsabkommens oder den Steuergesetzen einer Steuerjurisdiktion rückerstattbar wären oder aufgrund gemeinschaftsrechtlicher Bestimmungen (EU) an der Quelle entlastbar wären; oder
(g) aufgrund oder infolge eines internationalen Vertrages, dessen Partei eine Steuerjurisdiktion ist oder einer Verordnung oder Richtlinie aufgrund oder infolge eines solchen internationalen Vertrages auferlegt oder erhoben werden; oder
(h) von einer Zahlstelle aufgrund der vom Rat der Europäischen Union am 3. Juni 2003 erlassenen Richtlinie im Bereich der Besteuerung von Zinserträgen (Richtlinie 2003/48/EG des Rates) einbehalten oder abgezogen wurden, oder aufgrund von Rechts- und Verwaltungsvorschriften, welche zur Umsetzung dieser Richtlinien erlassen wurden; oder
(i) von einer Zahlstelle einbehalten oder abgezogen werden, wenn die Zahlung von einer anderen Zahlstelle ohne den Einbehalt oder Abzug hätte vorgenommen werden können; oder
(j) ihnen ein Anleihegläubiger nicht unterläge, sofern er zumutbarerweise Steuerfreiheit oder eine Steuererstattung oder eine Steuervergütung hätte erlangen können; oder
(k) jegliche Kombination der Absätze (a)-(j).
Zudem werden keine Zusätzlichen Beträge im Hinblick auf Zahlungen auf die Schuldverschreibungen an einen Anleihegläubiger vorgenommen, welcher als Treuhänder oder Partnerschaft oder ein anderer als der wirtschaftliche Eigentümer fungiert, soweit nach den Gesetzen einer Steuerjurisdiktion eine solche Zahlung für Steuerzwecke dem Einkommen des Begünstigten bzw. Gründers eines Treuhandvermögens zugerechnet würde im Hinblick auf einen solchen Treuhänder oder einen Teilhaber einer solchen Partnerschaft oder wirtschaftlichen Eigentümer, welcher selbst nicht zum Erhalt von Zusätzlichen Beträgen berechtigt gewesen wäre, wenn dieser Begünstigte, Gründer eines Treuhandvermögens, Teilhaber oder wirtschaftliche Eigentümer unmittelbarer Anleihegläubiger der Schuldverschreibungen wäre.
§7 (Verjährung)
Die in §801 Absatz 1 Satz 1 BGB bestimmte Vorlegungsfrist wird für die Schuldverschreibungen auf zehn Jahre abgekürzt. Die Vorlegungsfrist für die Schuldverschreibungen im Zusammenhang mit Zinszahlungen beträgt gemäß §801 Absatz 2 Satz 1 BGB vier Jahre.
§8 (Kündigungsgründe)
Wenn einer der folgenden Kündigungsgründe (jeweils ein "Kündigungsgrund") eintritt, ist jeder Anleihegläubiger berechtigt, seine Schuldverschreibung durch schriftliche Erklärung an die Anleiheschuldnerin, die in der bezeichneten Geschäftsstelle der Hauptzahlstelle zugehen muss, mit sofortiger Wirkung zu kündigen, woraufhin für diese Schuldverschreibung der vorzeitige Rückzahlungsbetrag zusammen mit etwaigen bis zum tatsächlichen Rückzahlungstag aufgelaufenen Zinsen sofort fällig und zahlbar ist, es sei denn, der Kündigungsgrund ist vor Erhalt der Erklärung durch die Anleiheschuldnerin weggefallen:
- 53 - (a) das Kapital ist nicht innerhalb von 7 Tagen oder die Zinsen in Bezug auf solche Schuldverschreibungen sind nicht innerhalb von 30 Tagen nach dem betreffenden Fälligkeitstag gezahlt worden; oder
(b) die Anleiheschuldnerin unterlässt die ordnungsgemäße Erfüllung oder Beachtung einer Verpflichtung aus den Schuldverschreibungen, diese Unterlassung stellt einen wesentlichen Nachteil für die Anleihegläubiger dar und dauert länger als 60 Tage fort, nachdem der Anleiheschuldnerin von Anleihegläubigern, die nicht weniger als 25 % des Gesamtnennbetrages halten, hierüber eine Benachrichtigung zugegangen ist, mit der sie aufgefordert wird, diese Unterlassung zu heilen; oder
(c) die Emittentin oder die Garantin eine Zahlungsverpflichtung in Höhe oder im Gegenwert von mehr als Euro 10.000.000,- aus Finanziellen Verbindlichkeiten oder aufgrund einer Bürgschaft oder Garantie, die für Finanzielle Verbindlichkeiten Dritter gegeben wurde, nicht innerhalb von 30 Tagen nach ihrer Fälligkeit der im Falle einer Bürgschaft oder Garantie nicht innerhalb von 30 Tagen nach Inanspruchnahme aus dieser Bürgschaft oder Garantie erfüllt, es sei denn, die Emittentin bzw. die Garantin bestreitet in gutem Glauben, dass diese Zahlungsverpflichtung besteht oder fällig ist bzw. diese Bürgschaft oder Garantie berechtigterweise geltend gemacht wird; oder
(d) gegen die Emittentin bzw. die Garantin wird ein österreichisches oder niederländisches Insolvenzverfahren oder ein vergleichbares Verfahren in einer anderen Rechtsordnung eröffnet, soweit ein solches Ereignis als Kündigungsgrund vereinbart werden kann; oder
(e) die Anleiheschuldnerin oder die Garantin wird zahlungsunfähig oder tritt durch wirksamen Beschluss in ein Auflösungs- oder Liquidationsverfahren ein oder ein Ereignis tritt ein, das unter dem anwendbaren Recht einer Jurisdiktion eine mit solchen Ereignissen vergleichbare Wirkung hat (außer zum Zweck einer Restrukturierung oder Verschmelzung, deren Bedingungen zuvor durch eine Versammlung der Anleihegläubiger genehmigt wurde); oder
(f) die Emittentin stellt ihre Geschäftstätigkeit ganz oder überwiegend ein, veräußert oder gibt ihr gesamtes Vermögen oder den wesentlichen Teil ihres Vermögens anderweitig ab und (i) vermindert dadurch den Wert ihres Vermögens wesentlich und (ii) es wird dadurch wahrscheinlich, dass die Emittentin ihre Zahlungsverpflichtungen gegenüber den Anleihegläubigern nicht mehr erfüllen kann bzw. im Falle der Garantin (oder einer Nachfolgegesellschaft der Garantin im Zuge einer Verschmelzung oder einer Übernahme), ihre Zahlungsverpflichtungen gegenüber den Anleihegläubigern unter der Garantie nicht mehr erfüllen kann; oder
(g) eine Pfändung auf, Beschlagnahme von, Vollstreckung in oder ein anderes rechtliches Verfahren betreffend irgendeinen Teil des Eigentums, Vermögens oder der Erlöse der Emittentin oder Garantin wird auferlegt, durchgesetzt oder eingeklagt und innerhalb von 60 Tagen weder aufgehoben noch ausgesetzt (Vollstreckungsverfahren); oder
(h) eine von der Emittentin oder Garantin geschaffene oder übernommene Hypothek, Belastung, Pfand, dingliches Sicherungsrecht oder andere Belastung, gegenwärtig oder zukünftig, wird im Hinblick auf die Summe der Nennbeträge von über Euro 25.000.000 oder dem Gegenwert davon (auf der Basis des mittleren Devisen-Kassa-Kurses für die betreffende Währung gegen den Euro durch die Berechnung einer führenden Bank am jenem Tag) durchsetzbar, und irgendein Schritt zur Durchsetzung wird gesetzt (einschließlich der Übernahme von Besitz oder der Bestellung eines Zwangsverwalters, Verwalters oder einer anderen gleichartigen Person) (Verwertung einer Sicherheit); oder
(i) es ist oder wird unrechtmäßig für die Emittentin oder Garantin, eine oder mehrere ihrer Verpflichtungen nach den Schuldverschreibungen durchzuführen oder einzuhalten (Rechtswidrigkeit); oder
(j) die Emittentin macht Mitteilung under Abschnitt 36 des Holländischen Steuergesetzes von 1990 (Invorderingswet 1990) oder unter Abschnitt 16d des Holländischen Sozialversicherungsgesetzes (Coördinatiewet Sociale Verzekeringen). - 54 -
§9 (Beauftragte Stellen)
(1) Bestellung. Die Hauptzahlstelle und die Zahlstellen (zusammen die "beauftragten Stellen") und ihre Geschäftsstellen (die durch Geschäftsstellen innerhalb derselben Stadt ersetzt werden können) lauten:
Hauptzahlstelle: Citibank, N.A. Agency and Trust 21st floor, Citigroup Centre Canada Square, Canary Wharf London E14 5LB England
Zahlstellen: Dexia Banque International à Luxembourg 69, route d’Esch 2953 Luxembourg Luxemburg
Citibank International plc Austria Branch Am Kärntner Ring 11-13 1010 Wien Österreich
(2) Änderung der Bestellung oder Abberufung. Die Anleiheschuldnerin behält sich das Recht vor, jederzeit die Bestellung einer beauftragten Stelle zu ändern oder zu beenden und eine andere Hauptzahlstelle oder zusätzliche oder andere Zahlstellen zu bestellen. Die Anleiheschuldnerin wird zu jedem Zeitpunkt (i) eine Hauptzahlstelle unterhalten, (ii) solange die Schuldverschreibungen an einer Börse notiert sind, eine Zahlstelle (die die Hauptzahlstelle sein kann) mit bezeichneter Geschäftsstelle an dem Ort unterhalten, den die Regeln dieser Börse verlangen und (iii) falls eine Richtlinie der Europäischen Union zur Besteuerung von Zinseinkünften oder irgendein Gesetz zur Umsetzung dieser Richtlinie eingeführt wird, sicherstellen, dass sie eine Zahlstelle in einem Mitgliedsstaat der Europäischen Union unterhält, die nicht zum Abzug oder Einbehalt von Steuern gemäß dieser Richtlinie oder eines solchen Gesetzes verpflichtet ist, soweit dies in irgendeinem Mitgliedsstaat der Europäischen Union möglich ist. Eine Änderung, Abberufung, Bestellung oder ein sonstiger Wechsel wird nur wirksam (außer im Insolvenzfall, in dem eine solche Änderung sofort wirksam wird), sofern die Anleihegläubiger hierüber gemäß §12 vorab unter Einhaltung einer Frist von mindestens 30 und nicht mehr als 45 Tagen informiert wurden.
(3) Beauftragte der Anleiheschuldnerin. Jede beauftragte Stelle handelt ausschließlich als Beauftragte der Anleiheschuldnerin und übernimmt keinerlei Verpflichtungen gegenüber den Anleihegläubigern und es wird kein Auftrags- oder Treuhandverhältnis zwischen ihr und den Anleihegläubigern begründet.
(4) Die Zahlstelle übernimmt keine Haftung für irgendeinen Irrtum oder eine Unterlassung oder irgendeine darauf beruhende nachträgliche Korrektur in der Berechnung oder Veröffentlichung irgendeines Betrags zu den Schuldverschreibungen, sei es auf Grund von Fahrlässigkeit oder aus sonstigen Gründen.
§10 (Ersetzung der Anleiheschuldnerin)
(1) Die Anleiheschuldnerin (oder jede Schuldnerin, welche die Anleiheschuldnerin ersetzt) ist jederzeit berechtigt, ohne weitere Zustimmung der Anleihegläubiger ein mit der Garantin verbundenes Unternehmen (wie nachfolgend definiert) an ihrer Stelle als Hauptschuldnerin (die "Nachfolgeschuldnerin") für alle Verpflichtungen aus und im Zusammenhang mit den Schuldverschreibungen einzusetzen, und die - 55 - Anleihegläubiger stimmen dieser Einsetzung hiermit unwiderruflich zu, vorausgesetzt, dass:
(a) alle für die Wirksamkeit der Ersetzung notwendigen Dokumente (die "Dokumente") von der Anleiheschuldnerin und der Nachfolgeschuldnerin unterzeichnet werden, entsprechend denen die Nachfolgeschuldnerin zu Gunsten jedes Anleihegläubigers alle Verpflichtungen aus diesen Anleihebedingungen und dem Agency Agreement übernimmt, als sei sie von Anfang an Stelle der Anleiheschuldnerin Partei dieser Vereinbarungen gewesen, und entsprechend denen die Anleiheschuldnerin und die Garantin (falls die Garantin nicht die Nachfolgeschuldnerin ist) zu Gunsten jedes Anleihegläubigers unbedingt und unwiderruflich die Zahlung aller fälligen und durch die Nachfolgeschuldnerin als Hauptschuldner zahlbaren Beträge garantiert (wobei diese Garantie im Folgenden als "Ersetzungs-Garantie") bezeichnet wird);
(b) die Dokumente ein unselbstständiges Garantieversprechen der Nachfolgeschuldnerin und der Anleiheschuldnerin enthalten, wonach die Nachfolgeschuldnerin und die Hauptschuldnerin alle für die Ersetzung und die Abgabe der Ersetzungs-Garantie durch die Anleiheschuldnerin notwendigen Genehmigungen und Einverständniserklärungen von Regierungsstellen und Aufsichtsbehörden erhalten haben, wonach ferner die Nachfolgeschuldnerin alle für die Erfüllung ihrer Verpflichtungen aus den Dokumenten notwendigen Genehmigungen und Einverständniserklärungen von Regierungsstellen und Aufsichtsbehörden erhalten hat und wonach weiterhin sämtliche dieser Genehmigungen und Einverständniserklärungen in vollem Umfang gültig und wirksam sind und wonach zudem die Verpflichtungen der Nachfolgeschuldnerin und die Ersetzungs-Garantie jeweils gemäß ihren Bestimmungen wirksam und rechtsverbindlich und durch jeden Anleihegläubiger durchsetzbar sind und wonach schließlich, wenn die Nachfolgeschuldnerin ihre Verbindlichkeiten an den Schuldverschreibungen durch eine Niederlassung erfüllt, die Nachfolgeschuldnerin selbst verpflichtet bleibt;
(c) §8 dergestalt als ergänzt gilt, dass ein zusätzlicher Kündigungsgrund unter dieser Bestimmung der Wegfall der Wirksamkeit, Rechtsverbindlichkeit oder Durchsetzbarkeit der Ersetzungs-Garantie für jeden Anleihegläubiger ist; und
(d) der Hauptzahlstelle jeweils ein Rechtsgutachten bezüglich der betroffenen Rechtsordnungen von anerkannten Rechtsanwälten vorgelegt warden, die bestätigen, dass die Bestimmungen in den vorstehenden Unterabsätzen (a), (b) und (c) erfüllt wurden.
Für Zwecke dieses §10 bedeutet "verbundenes Unternehmen" ein Unternehmen, das seinen Sitz innerhalb der Europäischen Union hat und deren stimmberechtigte Anteile direkt oder indirekt zu mehr als 90 % von der Garantin gehalten werden.
(2) Nachdem die Dokumente für die Anleiheschuldnerin und die Nachfolgeschuldnerin wirksam und rechtsverbindlich geworden sind und eine Mitteilung gemäß Absatz 4 dieser Bestimmung erfolgt ist, gilt die Nachfolgeschuldnerin als in den Schuldverschreibungen an Stelle der Anleiheschuldnerin als Hauptschuldnerin verzeichnet und die Schuldverschreibungen gelten als dementsprechend ergänzt, um der Ersetzung zur Durchsetzung zu verhelfen. Die Unterzeichnung der Dokumente und die Mitteilung gemäß Absatz 4 dieser Bestimmung befreien, im Fall der Einsetzung einer anderen Gesellschaft als Hauptschuldnerin, die Anleiheschuldnerin von allen Verbindlichkeiten, die sie als Hauptschuldnerin unter den Schuldverschreibungen hatte.
(3) Die Dokumente werden so lange bei der Hauptzahlstelle hinterlegt und von dieser verwahrt werden, als noch Forderungen bezüglich der Schuldverschreibung von irgendeinem Anleihegläubiger gegen die Nachfolgeschuldnerin oder die Anleiheschuldnerin erhoben werden können oder Forderungen aus den Dokumenten noch nicht endgültig zugesprochen, ausgeglichen oder erfüllt worden sind.
(4) Spätestens 15 Geschäftstage nach Unterzeichnung der Dokumente wird die Nachfolgeschuldnerin dies den Anleihegläubigern und, sollten die Schuldverschreibungen an einer Börse notiert sein, dieser Börse und - 56 - jeder anderen Person oder Stelle, die gemäß den anwendbaren Gesetzen und Regelungen zu informieren ist, mitteilen.
(5) Für die Zwecke dieses §10 bedeutet 'Kontrolle' direkten oder indirekten Einfluss auf die Geschäftsleitung und Geschäftspolitik einer Gesellschaft oder die Möglichkeit, deren Richtung zu bestimmen, sei es kraft Vertrages oder kraft direkten oder indirekten Besitzes einer solchen Zahl stimmberechtigter Anteile, die es deren Inhaber ermöglichen, die Mehrheit der Geschäftsführer zu bestimmen, wobei jede Gesellschaft als darin einbezogen gilt, die eine ähnliche Beziehung zur erstgenannten Gesellschaft aufweist. 'Stimmberechtigte Anteile' sind zu diesem Zweck Kapitalanteile an einer Gesellschaft, die üblicherweise zur Wahl der Geschäftsführer berechtigen. Die Begriffe 'kontrolliert', 'kontrollierend' und 'gemeinsam kontrolliert' sind entsprechend auszulegen.
§11 (Begebung weiterer Schuldverschreibungen, Ankauf und Entwertung)
(1) Begebung weiterer Schuldverschreibungen. Die Anleiheschuldnerin ist berechtigt, jederzeit ohne Zustimmung der Anleihegläubiger weitere Schuldverschreibungen mit gleicher Ausstattung (mit Ausnahme des Emissionspreises und des ersten Zinszahlungstags) in der Weise zu begeben, dass sie mit diesen Schuldverschreibungen eine einheitliche Serie bilden, wobei in diesem Fall der Begriff "Schuldverschreibungen" entsprechend auszulegen ist.
(2) Ankauf. Die Anleiheschuldnerin und jedes ihrer Tochterunternehmen ist berechtigt, Schuldverschreibungen im Markt oder anderweitig zu jedem beliebigen Preis zu kaufen. Sofern diese Käufe durch öffentliches Angebot erfolgen, muss dieses Angebot allen Anleihegläubigern gegenüber erfolgen. Die von der Anleiheschuldnerin erworbenen Schuldverschreibungen können nach Wahl der Anleiheschuldnerin von ihr gehalten, weiterverkauft oder entwertet werden.
(3) Entwertung. Sämtliche vollständig zurückgezahlten Schuldverschreibungen sind unverzüglich zu entwerten und können nicht wiederbegeben oder wiederverkauft werden.
§12 (Mitteilungen)
(1) Bekanntmachung. Alle die Schuldverschreibungen betreffenden Mitteilungen sind in einer führenden Tageszeitung mit allgemeiner Verbreitung in Luxemburg und in Österreich zu veröffentlichen. Diese Tageszeitung wird voraussichtlich das d’Wort in Bezug auf Luxemburg und das Amtsblatt der Wiener Zeitung in Bezug auf Österreich sein. Jede derartige Mitteilung gilt mit dem fünften Tag nach dem Tag der Veröffentlichung (oder bei mehreren Veröffentlichungen mit dem fünften Tag nach dem Tag der ersten solchen Veröffentlichung) als wirksam erfolgt.
(2) Mitteilungen an das Clearing System. Die Emittentin ist berechtigt, eine Veröffentlichung nach Absatz 1 durch eine Mitteilung an das Clearing System zur Weiterleitung an die Anleihegläubiger zu ersetzen, vorausgesetzt, dass in Fällen, in denen die Schuldverschreibungen an einer Börse notiert sind, die Regeln dieser Börse diese Form der Mitteilung zulassen. Jede derartige Mitteilung gilt am fünften Tag nach dem Tag der Mitteilung an das Clearing System als den Anleihegläubigern mitgeteilt.
§13 (Anwendbares Recht, Gerichtsstand, Gerichtliche Geltendmachung und Zustellungsbevollmächtigter)
(1) Anwendbares Recht. Die Schuldverschreibungen unterliegen deutschem Recht.
(2) Gerichtsstand. Ausschließlich zuständig für sämtliche im Zusammenhang mit den Schuldverschreibungen entstehenden Klagen oder sonstige Verfahren ("Rechtsstreitigkeiten") ist das Landgericht Frankfurt am Main. Die Anleihegläubiger können ihre Ansprüche jedoch auch vor anderen zuständigen Gerichten geltend machen. Die Anleiheschuldnerin unterwirft sich den in diesem Absatz bestimmten Gerichten.
- 57 -
(3) Gerichtliche Geltendmachung. Jeder Anleihegläubiger von Schuldverschreibungen ist berechtigt, in jedem Rechtsstreit gegen die Anleiheschuldnerin oder in jedem Rechtsstreit, in dem der Anleihegläubiger und die Anleiheschuldnerin Partei sind, seine Rechte aus diesen Schuldverschreibungen im eigenen Namen auf der folgenden Grundlage zu stützen oder geltend zu machen: (i) er bringt eine Bescheinigung der Depotbank bei, bei der er für die Schuldverschreibungen ein Wertpapierdepot unterhält, welche (a) den vollständigen Namen und die vollständige Adresse des Anleihegläubigers enthält, (b) den Gesamtnennbetrag der Schuldverschreibungen bezeichnet, die unter dem Datum der Bestätigung auf dem Wertpapierdepot verbucht sind, und (c) bestätigt, dass die Depotbank gegenüber dem Clearing System eine schriftliche Erklärung abgegeben hat, die die vorstehend unter (a) und (b) bezeichneten Informationen enthält; und (ii) er legt eine Kopie der die betreffenden Schuldverschreibungen verbriefenden Globalurkunde vor, deren Übereinstimmung mit dem Original durch eine vertretungsberechtigte Person des Clearing Systems oder des Verwahrers des Clearing Systems bestätigt wurde, ohne dass eine Vorlage der Originalbelege oder der die Schuldverschreibungen verbriefenden Globalurkunde in einem solchen Verfahren erforderlich wäre. Für die Zwecke des Vorstehenden bezeichnet "Depotbank" jede Bank oder ein sonstiges anerkanntes Finanzinstitut, das berechtigt ist, das Wertpapierverwahrungsgeschäft zu betreiben und bei der/dem der Anleihegläubiger ein Wertpapierdepot für die Schuldverschreibungen unterhält, einschließlich des Clearing Systems. Jeder Anleihegläubiger kann, ungeachtet der vorstehenden Bestimmungen, seine Rechte unter diesen Schuldverschreibungen auch auf jede andere im Land der Geltendmachung zulässige Methode geltend machen.
(4) Bestellung von Zustellungsbevollmächtigten. Für etwaige Rechtsstreitigkeiten vor deutschen Gerichten bestellen die Emittentin und die Garantin jeweils APT-Austrian Power Trading Deutschland GmbH, Sonnenstraße 17, 80331 München, Deutschland, zu ihrem Zustellungsbevollmächtigten in Deutschland.
§14 (Sprache)
Diese Anleihebedingungen sind in deutscher Sprache abgefasst. Eine Übersetzung in die englische Sprache ist beigefügt. Der deutsche Text ist bindend und maßgeblich. Die Übersetzung in die englische Sprache ist unverbindlich.
- 58 - The German version of this Guarantee and Negative Pledge shall be the only legally binding version. This English translation is for convenience only.
GUARANTEE AND NEGATIVE PLEDGE
of
Österreichische Elektrizitätswirtschafts-Aktiengesellschaft
(a stock corporation (Aktiengesellschaft) incorporated under the laws of the Republic of Austria)
(the "Guarantor")
for the benefit of the Bondholders of the
EUR 500,000,000 5.00 per cent. Bonds of 2007/2014
issued by
VERBUND-International Finance B.V.
(a private limited liability company (besloten vennootschap met beperkte aansprakelijkheid) under the laws of the Netherlands)
(the "Issuer")
Whereas:
(A) The Issuer intends to issue the Bonds (as defined below) on 25 June 2007.
(B) The Guarantor wishes to guarantee unconditionally and irrevocably the payment of principal and interest as well as any other amounts contemplated to be payable in respect of the Bonds.
(C) The Guarantor wishes to enter into a negative pledge for the benefit of each Bondholder.
(D) Unless otherwise defined herein, terms used and not separately defined herein shall have the same meaning to such terms as defined in the Terms and Conditions of the Bonds (as defined below).
§ 1 Definitions
In this Guarantee:
"Bondholders" means the holders of the Bonds from time to time and a "Bondholder" means each such holder;
"Bonds" means the EUR 500,000,000 5.00 per cent. Bonds of 2007/2014 issued by the Issuer (and in the event of the issue of further Bonds pursuant to § 11 of the Terms and Conditions of the Bonds, such further Bonds) pursuant to the Terms and Conditions of the Bonds;
"Guarantor" means Österreichische Elektrizitätswirtschafts-Aktiengesellschaft;
"Terms and Conditions of the Bonds" means the terms and conditions of the Bonds; and
- 59 - "Issuer" means VERBUND-International Finance B.V. and, upon any substitution of Issuer pursuant to § 10 of the Terms and Conditions of the Bonds, any Substitute Issuer (other than the Guarantor).
§ 2 Guarantee and Negative Pledge
The Guarantor hereby unconditionally and irrevocably guarantees to each Bondholder the due and punctual payment of all amounts contemplated to be payable in accordance with the Terms and Conditions of the Bonds on the due dates provided for in the Terms and Conditions of the Bonds. The Guarantor waives all and any defences it might have against a Bondholder. The Guarantor shall be obligated to make payment under this Guarantee irrespective of any Bond being validly issued, its validity, binding nature and enforceability.
The Guarantee constitutes a direct, unconditional, unsubordinated and (subject to the provisions of the negative pledge contained in this Guarantee) unsecured obligation of the Guarantor ranking pari passu with all other unsecured and unsubordinated obligations of the Guarantor, present and future, unless such obligations are accorded priority under mandatory provisions of statutory law.
The Guarantor further undertakes, so as long as any Bonds remain outstanding, but only up to the time all amounts of principal and interest have been placed at the disposal of one of the Paying Agents (as set forth and defined in the Terms and Conditions of the Bonds), not to create, grant or permit to subsist any mortgage charge, pledge, lien or other encumbrance upon any or all of its present or future assets as security for any present or future Financial Indebtedness (as defined below), without at the same time having the Guarantee share equally and ratably in such security or such other security as shall be approved by an independent accounting firm of internationally recognised standing as being equivalent security.
For purposes of this Guarantee, any "Financial Indebtedness" means any indebtedness of the Guarantor for or in respect of:
(a) moneys borrowed exceeding Euro 25,000,000 (or the equivalent amount in another currency);
(b) amounts raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or similar instruments;
(c) the amount exceeding Euro 25,000,000 (or the equivalent amount in another currency) of any liability in respect of leases or hire purchase contracts which would, in accordance with generally accepted accounting standards in the jurisdiction of incorporation of the lessee or International Financial Reporting Standards, as the case may be, be treated as finance or capital leases;
(d) amounts exceeding Euro 25,000,000 (or the equivalent amount in another currency) raised under any other transaction (including any forward sale or purchase agreement and the sale of receivables or other assets on a “with recourse” basis) having the commercial effect of a borrowing;
(e) any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative transaction, only the mark-to-market value shall be taken into account);
(f) any counter-indemnity obligation in respect of any guarantee, indemnity, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institution; and
(g) the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (a) to (f) above.
- 60 - The intent and purpose of this Guarantee is to ensure that the Bondholders shall receive in all factual or legal circumstances and regardless of the validity and enforceability of the obligations of the Issuer or any Substitute Issuer which may have been substituted for the Issuer pursuant to § 10 of the Terms and Conditions of the Bonds and of any other grounds on which the Issuer or the Substitute Issuer may fail to effect payment, the amounts payable under the Bonds on the due dates provided for in the Terms and Conditions of the Bonds.
All payments of principal and interest in respect of the Bonds to the Bondholders shall be made free and clear of, and without withholding or deduction for, any taxes, duties, assessments or governmental charges of whatever nature imposed, levied, collected, withheld or assessed by or within the Netherlands, Austria or any authority therein or thereof having power to tax (a "Taxing Jurisdiction"), unless such withholding or deduction is required by law. In that event, the Issuer shall pay such additional amounts (the "Additional Amounts") as shall result in receipt by the Bondholders of such amounts as would have been received by them had no such withholding or deduction been required, except that no Additional Amounts shall be payable with respect to any Bond if:
(a) these are to be paid otherwise than by withholding or deduction at the source of payments under the Bonds; or
(b) a Bondholder who has no relationship to a Taxing Jurisdiction other than the mere holding of the Bonds, and is thus liable to pay duties and taxes; or
(c) these are being withheld in the Republic of Austria by a paying agent pursuant to § 95 Austrian Income Tax Act (Einkommensteuergesetz); or
(d) these are to be paid because of a change of law which will enter into force later than 30 days after the maturity date of the respective payment under the Bonds or, if payment is made later, after proper provision of all due amounts and a respective notice in accordance with § 12 of the Terms and Conditions of the Bonds; or
(e) these are withheld or deducted after payment by the Issuer in the course of the transfer to the Bondholder; or
(f) these could be reclaimed pursuant to a double taxation treaty or the fiscal laws of a Taxing Jurisdiction or be dischargeable at the source due to community law (EU) provisions; or
(g) these are imposed or levied pursuant to or as a consequence of an international treaty to which a Taxing Jurisdiction is a party or a regulation or a directive on the basis of or as a consequence of such international treaty; or
(h) these were withheld or deducted by a Paying Agent pursuant to Council Directive 2003/48/EC of 3 June 2003 on the taxation of savings income in the form of interest payments or due to statutory or administrative provisions enacted for the implementation of this directive; or
(i) these are withheld or deducted by a Paying Agent, if such payment could have been effected by another Paying Agent without such withholding or deduction; or
(j) these would not have to be paid by a Bondholder if it could have obtained tax exemption, tax restitution or tax rebate in a reasonable way; or
(k) any combination of items (a)-(j); nor shall any Additional Amounts be paid with respect to any payment on a Bond to a Bondholder who is a fiduciary or partnership or who is other than the sole beneficial owner of such payment to the extent such payment would be required by the laws of the Taxing Jurisdiction to be included in the income, for tax purposes, of a beneficiary or settlor with respect to such fiduciary or a member of such partnership or a beneficial owner who would not have been entitled to such Additional Amounts had such beneficiary, settlor, member or beneficial owner been the Bondholder of the Bond. - 61 -
§ 3 Contract for the Benefit of Bondholders
This Guarantee constitutes a contract for the benefit of the Bondholders as third party beneficiaries pursuant to § 328(1) BGB (German Civil Code) giving rise to the right of each Bondholder to require performance of the obligations undertaken herein directly from the Guarantor and to enforce such obligations directly against the Guarantor.
§ 4 Substitution
In the event of any substitution of the Issuer by any other entity pursuant to § 10 of the Terms and Conditions of the Bonds, this Guarantee and the obligations hereunder shall extend to any and all sums expressed to be payable pursuant to the Terms and Conditions of the Bonds by any Substitute Issuer (as defined therein) even if the Substitute Issuer shall have assumed the obligations arising under the Bonds directly from the Guarantor.
§ 5 Governing Law
The rights and obligations arising from this Guarantee are in all respects governed by the laws of Germany.
The place of performance is Frankfurt am Main, Germany.
Non-exclusive place of jurisdiction for all proceedings arising from matters provided for in this Guarantee shall be Frankfurt am Main, Germany.
Vienna, 21 June 2007
Österreichische Elektrizitätswirtschafts-Aktiengesellschaft
- 62 - DESCRIPTION OF THE ISSUER
Statutory Auditors
Independent auditors of the Issuer for the fiscal years 2005 and 2006 are KPMG Audit, Rijnderslaan 10-20, Burg, 1185 MC Amsterdam, the Netherlands (the "Old Auditors"). The Old Auditors are a member of Nivra (Royal Dutch Institute for Registered Accountants).
For fiscal year 2007, the Issuer chose Deloitte Accountants B.V. Orlyplein 10, 1043 DP Amsterdam, P.O. Box 58110, 1040 HC Amsterdam, the Netherlands, (the "New Auditors") as independent auditor due to its best bid in a tender offer held in 2006 by the Guarantor. The New Auditors are a member of Nivra (Royal Dutch Institute for Registered Accountants).
Risk Factors
The operations of the Issuer involve certain risks typically associated with the business the Issuer engages in. A description of such risks is set out in "Risk Factors - Risks relating to the Issuer" on page 16 – 17 of this Prospectus.
Information about the Issuer
History and Development
The Issuer is a Dutch private limited liability company in form of a besloten vennootschap met beperkte aansprakelijkheid incorporated under the laws of the Netherlands. The legal and commercial name of the Issuer is VERBUND-International Finance B.V. The Issuer is domiciled in the Netherlands with its registered office at Prins Bernhardplein 200, 1097JB Amsterdam, the Netherlands, (telephone number: +31-(0)20-5214777). The Issuer is registered with the trade register of the Kamer van Koophandel (Chamber of Commerce) for Amsterdam under the file number 34219608.
The Issuer was incorporated in Amsterdam, the Netherlands, on 11 January 2005 for an indefinite term with the company name VERBUND-International Finance B.V. to serve as a financing company for the purposes of Verbund Group.
Business Overview
The Issuer serves as a financing company for the purposes of Verbund Group and is regularly engaged in different financing transactions within the limits set forth in its articles of association (the "Articles of Association"). The Issuer's objective is, among others, to arrange medium and long term finance for Verbund Group and, by grouping these activities together, to save costs.
Because of its aforementioned purpose, the Issuer does not have any markets in which it competes and, therefore, the Issuer cannot make a statement regarding its competitive position in any markets.
Share Capital
The issued share capital of the Issuer amounts to EUR 1,000,000 and is divided into 1,000 registered shares, each with restricted transferability and a nominal value of EUR 1,000. No share certificates shall be issued. The issued share capital of the Issuer is fully paid-up. The shares are voting shares and carry one vote per share, a right to elect the management board of the Issuer (the "Management Board") and the right to receive distributions of the Issuer's assets in case of a winding-up of the Issuer. Voting of shareholders occurs at annual general meetings and extraordinary general meetings of the Issuer held in accordance with the Articles of Association of the Issuer and mandatory provisions of the laws of the Netherlands.
- 63 -
Articles of Association
According to Article 3 of the Articles of Association the objects of the Issuer is, among others, to incorporate, to participate in any way whatsoever in, to manage, to supervise businesses and companies. The Issuer may also finance businesses and companies with which the Issuer forms a group. The Issuer may also borrow, lend and raise funds, including the issue of bonds, promissory notes or other securities or evidence of indebtness as well as to enter into agreements in connection with the aforementioned activities. The Issuer may also render advice and services to businesses and companies with which the Issuer forms a group. The Issuer may also grant guarantees, to bind the Issuer and to pledge its assets for obligation of businesses and companies with which it forms a group. The Issuer may also acquire, alienate, manage, lease and exploit registered property and items of property in general and do all that is connected with these objects or may be conducive thereto, all to be interpreted in the broadest sense. In the conduct of its business, the Issuer will also observe the interests of legal entities and companies connected with it in a group.
Organisational Structure
The Issuer is a directly wholly owned subsidiary of the Guarantor, the parent company of Verbund Group. The Issuer has no subsidiaries. For further information on the structure of Verbund Group please see "Description of the Guarantor and Verbund Group - Organisational Structure" on page 70 of this Prospectus.
The Issuer is dependent upon the administrative and management services provided by Fortis Intertrust (Netherlands) BV, a company incorporated under the laws of the Netherlands, having its seat in Amsterdam, the Netherlands and its place of business at Prins Bernhardplein 200, 1097JB Amsterdam, the Netherlands.
Trend Information
Save as disclosed in this Prospectus, there has been no material adverse change in the prospects of the Issuer since the date of its last published audited financial statements for the financial year ended 31 December 2006.
Administrative, Management, and Corporate Bodies
The corporate bodies of the Issuer are:
(i) the "Management Board";
(ii) the "Supervisory Board"; and
(iii) the "General Meeting of Shareholders".
Management Board
In accordance with the Articles of Association, the Management Board is responsible for the management of the Issuer. The Management Board shall be composed of at least 2 managing directors (each a "Managing Director" and together the "Managing Directors") who do not need to be shareholders. The Managing Directors are elected by the General Meeting of Shareholders subject to the right of the shareholders to terminate the membership of the Managing Directors with immediate effect and without being obligated to present any justification for the termination and/or to replace the respective Managing Director with a new member of the Management Board. According to the Articles of Association, the Management Board does not entail any sub-committees.
The following individuals are currently members of the Management Board:
Pieter Oosthoek Member of the Strategic Management Board of Fortis Intertrust (head of the Securitisation Department) - 64 -
Mag. Andreas Wollein Head of Group Finance & Investor Relations of the Guarantor Managing director of the Issuer
The business address of the Management Board is Prins Bernhardplein 200, 1097 JB Amsterdam, the Netherlands.
There are no conflicts of interest between the duties of the above-mentioned members of the Management Board and their respective private interests or other duties, save for their activities as member of the Managing Board of the Guarantor.
Supervisory Board
In accordance with the Articles of Association, the Supervisory Board is responsible for the supervision of the Management Board and the general course of affairs of the Issuer and shall assist by giving advice. The Supervisory Board shall be composed of at least two or more supervisory directors. The members of the Supervisory Board are appointed by the General Meeting of Shareholders.
The following individuals are currently member of the Supervisory Board:
Dr. Michael Pistauer, Chairman Chairman of the Managing Board of the Guarantor Vice-Chairman of the Austrian Association of Electricity Companies (VEÖ)
Dr. Johann Sereinig, Deputy-Chairman
The business address of the Supervisory Board is Prins Bernhardplein 200, 1097 JB Amsterdam, the Netherlands.
There are no conflicts of interest between the duties of the above-mentioned members of the Supervisory Board and their respective private interests or other duties.
General Meeting of Shareholders
The annual General Meeting of Shareholders is held within six months after the end of each financial year. The Issuer’s financial year corresponds to the calendar year. The annual or extraordinary General Meeting of Shareholders is held in Amsterdam or in the Municipality of Haarlemmermeer but may also be held elsewhere, in which case valid resolutions of the General Meeting of Shareholders may only be adopted if all of the Issuer’s issued capital is represented.
Board Practices
In accordance with the Articles of Association (i) two members of the Management Board collectively or (ii) one member of the Management Board together with an officer of the Issuer with general power as appointed by the Management Board and as approved by the Supervisory Board are authorised to collectively represent the Issuer.
Corporate governance regimes of the Netherlands are not applicable to the Issuer.
Major Shareholders
The Issuer is a directly wholly owned subsidiary of Guarantor. Guarantor holds 100 per cent. of the total number of 1,000 issued shares in the Issuer.
In the usage of the controlling power resulting from its shareholding in the Issuer, the Guarantor is subject to the applicable company law provisions in the Netherlands and the Articles of Association. - 65 -
Financial Information concerning the Issuer's Assets and Liabilities, Financial Position and Profits and Losses
Financial Information
The financial statements of the Issuer for the financial years 2005 and 2006, respectively, comprise the following financial information relating to the Issuer:
- the balance sheet as at 31 December 2005;
- the profit and loss account for the period ended 2005;
- the cash flow statement for the financial year ended 31 December 2005
- the Notes to the annual accounts for the financial year ended 31 December 2005;
- the balance sheet as at 31 December 2006;
- the profit and loss account for the period ended 2006;
- the cash flow statement for the financial year ended 31 December 2006; and
- the Notes to the annual accounts for the financial year ended 31 December 2006.
The financial statements of the Issuer for the financial years 2005 and 2006, respectively, have been incorporated by reference into this Prospectus as set out under "Incorporation by Reference" above.
The unaudited financial statements of the Issuer for the first quarter of the financial year 2007 as of 31 March 2007 comprise the following information relating to the Issuer:
- the balance sheet as at 31 March 2007 (unaudited);
- the profit and loss account as at 31 March 2007 (unaudited); and
- the cash flow statements as of 31 March 2007 (unaudited).
The unaudited financial statements of the Issuer for the first quarter of the financial year 2007 as of 31 March 2007 have been incorporated by reference into this Prospectus as set out under "Incorporation by Reference" above.
Auditing of Historical Financial Information
The financial statements of the Issuer for the fiscal years 2005 and 2006, respectively, have been prepared on the basis of accounting principles generally accepted in the Netherlands (Dutch GAAP) and the Old Auditors have provided their unqualified opinion thereon. The audit opinions relating to the financial statements for the fiscal years 2005 and 2006 of the Issuer are incorporated by reference into this Prospectus, as set out under "Incorporation by Reference" above.
The financial statements of the Issuer for the first quarter of the financial year 2007 as of 31 March 2007 have not been audited.
- 66 - Legal and Arbitration Proceedings
There have been no governmental, legal or arbitration proceedings (including any such proceedings which are pending or threatened of which the Issuer is aware), during the period covering the last 12 months as from the date of this Prospectus which may have, or have had in the recent past, significant effects in the Guarantor’s and or Verbund Group’s financial position or profitability.
Significant change in the Issuer's Financial Position
Save as disclosed in this Prospectus, there has been no significant change in the Issuer's financial or trading position since the date of the last unaudited published interim financial statements of the Issuer for the three months ended 31 March 2007 up to the date of this Prospectus.
Contracts with regard to debt obligations
With regard to debt obligations, the Issuer has entered into contracts which are material in its view and which economic parameters as of 31 March 2007 are set out below:
(a) debt from external lenders:
Amount Rate of Interest Maturity
Euro 72,672,834 4.990 % November 2017 Euro 40,000,000 4.640 % November 2008 Euro 17,043,063 3,200 % June 2016 Euro 84,066,667 4.040 % September 2019 Euro 49,111,111 4.040 % March 2020 Euro 200,000,000 4.113 % March 2017
(b) debt from lenders within the group of the Issuer:
Amount Rate of Interest Maturity
Euro 50,000,000 4.425 % February 2015
- 67 - DESCRIPTION OF THE GUARANTOR AND VERBUND GROUP
Statutory Auditors
Independent auditors of the Österreichische Elektrizitätswirtschafts-Aktiengesellschaft (the "Guarantor", or together with its subsidiaries and affiliates consolidated in the relevant reporting period, the "Verbund Group") for the fiscal year 2005 are KPMG Alpen-Treuhand GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Porzellangasse 51, 1090 Vienna, Austria, registered with the Commercial Register (Firmenbuch) of the Commercial Court (Handelsgericht) of Vienna under FN 269874z and for the fiscal year 2006 are KPMG Wirtschaftsprüfungs- und Steuerberatungs GmbH, Porzellangasse 51, 1090 Vienna, Austria, registered with the Commercial Register (Firmenbuch) of the Commercial Court (Handelsgericht) of Vienna under FN 256865v (hereinafter together, the "Old Auditors"). The Old Auditors are members of the Chamber of Certified Accountants (Kammer der Wirtschaftstreuhänder) in Austria and of the Institute of Austrian Accountants (Institut Österreichischer Wirtschaftsprüfer).
For the fiscal year 2007, Deloitte Wirtschaftsprüfungs GmbH, Renngasse 1, Freyung, 1013 Vienna, Austria, registered with the Commercial Register (Firmenbuch) of the Commercial Court (Handelsgericht) of Vienna under FN 36059d (the "New Auditors"), was chosen as independent auditor due to its best bid in a tender offer held in 2006. The New Auditors are a member of the Chamber of Certified Accountants (Kammer der Wirtschaftstreuhänder) in Austria and of the Institute of Austrian Accountants (Institut Österreichischer Wirtschaftsprüfer).
Risk Factors
The operations involve certain risks typically associated with the business of Verbund Group. A description of such risks is set out in "Risk Factors – Risks relating to the Guarantor and Verbund Group" on page 17 – 20 of this Prospectus.
Information about the Guarantor
History and Development
The Guarantor is incorporated as a joint-stock corporation (Aktiengesellschaft) under the laws of Austria. The Guarantor came into existence on 26 September 1947 in Austria for an indefinite term. The legal name of the Guarantor is Österreichische Elektrizitätswirtschafts-Aktiengesellschaft. The commercial name of the Guarantor is Verbund. The Guarantor is domiciled in Vienna, Austria, with registered office at Am Hof 6a, 1010 Vienna, Austria (telephone number: +43 (0)5 03 13 0). The Guarantor is registered with the Commercial Register (Firmenbuch) of the Commercial Court (Handelsgericht) of Vienna under FN 76023z.
When the Guarantor was founded in 1947 on the basis of the 2nd Nationalisation Act, the Austrian legislator gave the Guarantor the task of rebuilding and expanding the Austrian electricity system.
In 1988, the Guarantor was privatised to 49 per cent. within the framework of an initial public offering of its shares (IPO) and acquired the federal shares in special companies (such as Donaukraft, Tauernkraft and Draukraft). Austria’s joining of the European Union in 1995 and the deregulation of the European power market in February 1999 marked the beginning of a new era for Verbund Group. It used the new opportunities, implemented reorganisation measures to modernise and internationalised its business activities. In 2001, the Austrian electricity market was fully deregulated.
- 68 - Business Overview – Verbund Group
General
Verbund is the leading utility in Austria and one of the most profitable utility companies in Europe. Verbund is focused on the core business of "electricity". The business areas of Verbund are generation (divided into hydro power and thermal power), tranding/sales and transmission. Verbund’s output is predominantly based on low-cost and environmentally favorable hydro power (about 85% of generation). Verbund achieves two thirds of its sales in markets abroad, especially in Germany.
The holding company of Verbund Group is Verbundgesellschaft AG (the Guarantor). Verbundgesellschaft's main subsidiaries are an 80%-owned hydropower unit (VERBUND-Austrian Hydro Power AG - "AHP"); a 55.65%- owned thermal power unit (VERBUND-Austrian Thermal Power GmbH & Co KG – "ATP"); two wholly owned trading and sales subsidiaries (VERBUND-Austrian Power Trading AG – "APT" and VERBUND-Austrian Power Sales GmbH – "APS"), and a fully owned transmission unit (VERBUND-Austrian Power Grid AG – "APG"). The remaining stakes in AHP and ATP are owned by a number of Austrian provincial utilities.
Verbundgesellschaft is 51% owned by the Austrian government. Austrian provincial utilities EVN AG, Wiener Stadtwerke Holding AG, and Tiwag Tirolerwasserkraft AG own about 25%. The remaining 24% is free floating. The Austrian constitution, which can only be changed with a two-thirds majority in parliament, prevents further privatization.
In 2006, Verbund Group had around 2,500 employees, achieved annual sales of Euro approx. 2.9 billion Euros and a net profit of around Euro 500 million.
Over the last years Verbund has continued its course towards internationalisation. The liberalised European electricity market covers approximately one half billion consumers, including more than 20 million commercial customers. Verbund will vigorously exploit these opportunities.
Verbund maintains business relationships in more than 20 countries and has more than 13 branches and joint ventures in Europe. Verbund has expanded its business activities in Italy, France and most recently expanded into Turkey and is examining joint projects with Russia's leading hydroelectric group HydroOGK, the second largest in the world after Hydro-Québec.
Today Verbund is in a very good position to deal with the challenges of the future. The goal is to double the market value in the coming ten years and to advance into the next league of European energy companies. Verbund intends to invest approximately 4 billion Euros for this purpose.
Generation
Verbund is one of the most environmentally friendly large generators of electricity in the European Union. Approximately 85 per cent. of Verbund’s electricity comes from 107 hydro power plants; 15 per cent. comes from three modern, non-nuclear thermal power plants.
The Austrian Hydro Power (AHP) operates 66 run of river and 21 storage power plants. In addition, Verbund holds procurement rights in further 20 hydro power plants. The maximum capacity of Verbund’s hydro power plants amounts to 6.4 GW and an annual generation capacity of 24.7 TWh.
Verbund Group is by far Austria's largest producer of electricity. Almost half of the domestic demand can be covered with the volume of electricity Verbund Group produces itself.
The Austrian Thermal Power (ATP) owns 9 thermal power plants with a maximum capycity of 1.9 GW. 3 plants are operative at the moment.
- 69 - Transmission
Verbund’s transmission unit (APG) is the control-area manager of the largest control area in Austria. It owns and operates the high voltage grid in Austria with interconnections to all neighbouring countries. APG’s network has a route length of more than 3,300 kilometers.
Trading/Sales
Verbund’s trading subsidiary, the Austrian Power Trading (APT), is among other things responsible for the sale of Verbund’s own generation. APT trades on all important electricity exchanges in Europe and supplies local utilities and large industrial customers. Verbund’s trading volume already exceeds the demand for electricity in Austria three times.
Verbund’s end customer company (APS) was successfully established in July 2005. It offers electricity to household customers, business customers and industries. Today almost 100,000 private customers as well as 5,000 industrial and commercial customers obtain electricity from Verbund’s end customer company.
Organisational Structure
The Guarantor is the parent company of Verbund Group. For details on the main companies of Verbund Group reference is made to pages 128 to 131 of the Annual Report of the Guarantor for the financial year 2006 which is incorporated by reference into this Prospectus (see “Incorporation by Reference”).
Trend Information
Save as disclosed in this Prospectus, there has been no material adverse change in the prospects of the Guarantor since the date of its last published audited financial statements for the financial year ended 31 December 2006.
Administrative, Management, and Supervisory Bodies
The corporate bodies of the Guarantor are:
(i) the "Managing Board";
(ii) the "Supervisory Board"; and
(iii) the "Annual General Meeting".
Members of the Managing Board
The Management Board of the Guarantor comprises the following 4 members:
Dr. Michael Pistauer, Chairman Vice-Chairman of the Austrian Association of Electricity Companies (VEÖ) (Chairman during the years 2002 – 2005).
Dr. Johann Sereinig, Vice-Chairman
Dr. Ulrike Baumgartner-Gabitzer
Mag. Christian Kern
Furthermore, Generaldirektor Dipl.-Ing. Johann Haider, former Chairman, resigned on 10 May 2007. The business address of the Managing Board is Am Hof 6a, 1011 Vienna, Austria. - 70 - Members of the Supervisory Board
The Guarantors’ Supervisory Board comprises the following 15 Members:
Dr. Gilbert Frizberg, Chairman Managing Partner of Hereschwerke Holding GmbH
Also member of the Economic Chamber (Wirtschaftskammer) of Steiermark (Vice-President), FI Beteiligungs- u. Finanzierungs AG (member of the Management Board), Internationalisierungs Center Steiermark GmbH (Chairman of the Supervisory Board)
Dr. Erhard Schaschl, Vice President Chairman of ETN Vermögensverwaltung AG
Also member of the supervisory boards of Treibacher Industrie AG (Deputy Chairman), Immoeast AG, Austrian Airlines Österreichische Luftverkehrs AG, RHI AG, Generali Vienna Holding AG, FRAPAG Industrie Holding AG, BENE AG and Wienerberger Ziegelindustrie AG.
Dr. Maximilian Eiselsberg, Second Deputy Chairman Attorney at law
Also member of VIVAG Vorsorge Immobilienveranlagung AG (Chairman of the Supervisory Board), Kurier Beteiligungsaktiengesellschaft (member of the Supervisory Board)
Anton Aichinger Staff Representative (since 29 August 2006)
Dipl. Ing. Dr. Günther Brauner Univ.-Prof. Technical University of Vienna
Also member of the Institut für Elektrische Anlagen und Energiewirtschaft (member of the Managing Board)
Kurt Christof Technical Officer, Staff Representative
Dipl.-BW Alfred H. Heinzel Managing Partner of Heinzel Holding GmbH
Also member of the Supervisory Board of MIBA AG, Allianz Elementar Versicherungs AG, Zellstoff Pöls AG, Wilfried Heinzel AG, Biocel Paskov AG, Czech Republic and Estonian Cell AS, Kunda, Estonia
Dr. Burkhard Hofer Spokesperson of the Managing Board of EVN AG
Also member of the Supervisory Board of BEWAG Burgenländische Elektrizitätswirtschafts AG, BEGAS Burgenländische Gaswirtschafts AG, Burgenland Holding AG and RAG-Beteiligungs AG
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Dr. Michael Losch Head of Department at the Federal Ministry for Economy and Labor
Harald Novak Technical Officer, Staff Representative
Dipl.Ing. Ingeborg Oberreiner Staff Representative (since 29 August 2006)
Dkfm. Peter Püspök Chairman of the Managing Board of Raiffeisenlandesbank NÖ-Wien
Also member of the Supervisory Board of Raiffeisen-Zentralbank Österreich AG, UNIQA Versicherungen AG and Tatra Banka a.s. Bratislava
Ing. Joachim Salamon Staff Representative (since 29 August 2006)
Dipl.-Ing Hansjörg Tengg Managing Director of smart technologies GmbH
Also Chairman of the Supervisory Board of EXAA AG, Saubermacher Dienstleistungs AG, Konsum Österreich reg. Gen., and Deputy Chairman of the Supervisory Board of APCS AG and AGPS AG
Ing. Siegfried Wolf General Director of Magna Holding Europa AG and Co-CEO Magna International Inc.
Also member of the Supervisory Board of ÖIAG and Siemens Österreich AG
The business address of the Supervisory Board is Am Hof 6a, 1011 Vienna, Austria.
Annual General Meeting
The Annual General Meeting is called by the Management Board or the Chairman of the Supervisory Board.
Conflicts of interests
In the fiscal year 2006, a contract was concluded with smart technologies Management Beratungs- und Beteiligungsgesellschaft m.b.H on supply and maintenance of software for APG and VMSG for a total fee of Euro 153,400 (the total order value in the fiscal year 2006 is shown, of this amount services in the total amount of Euro 111,900 were rendered and settled). The Supervisory Board member Dipl.-Ing. Hansjörg Tengg is a managing partner of smart technologies Management Beratungs- und Beteiligungsgesellschaft m.b.H. The services were rendered for various companies in Verbund Group. The contracts were approved by the Supervisory Board.
There are no other conflicts of interest between the duties of the above-mentioned members of the Management Board and Supervisory Board and their respective private interests or other duties.
Board Practices
Working Committee, also Auditing Committee
The Audit Committee of the Guarantor comprises the following 9 members: - 72 -
Dr. Gilbert Frizberg, Chairman Dr. Erhard Schaschl Anton Aichinger Dr. Maximilian Eiselsberg
Dr. Michael Losch Harald Novak Dipl.-Ing. Ingeborg Oberreiner Dkfm. Peter Püspök Ing. Siegfried Wolf
Corporate Governance
The Guarantor is committed to the Austrian Corporate Governance Code. By actively implementing the code, the Guarantor aims to ensure that the group is managed and controlled in a responsible manner that facilitates sustainable and long-term value creation and that a high level of transparency is created for all stakeholders. In the fiscal year 2003, the Guarantor was one of the first companies in Austria to undertake a commitment to comply with the code. Since then, the observance, to the greatest extent possible, of all rules set down in the code and the continuous optimisation of the high internal standards have been precedent tasks for the Managing Board and the Supervisory Board.
The Austrian Corporate Governance Code was revised at the beginning of 2006. The amendments referred, in particular, to the activities of the Supervisory Board and rules relating to the members of the Supervisory Board and aim to enhance transparency through the introduction of stricter disclosure requirements. The implementation of the latest version of the code is also strongly advocated by the Guarantor. Only 5 of the 80 C-Rules in the code are, in part, handled differently. Details relating to the departure from these rules are provided below (in keeping with the "comply" or "explain" principle):
C-Rule 2: The Guarantor largely adheres to the principle of "one share – one vote". The only exception here results from a voting restriction in the currently applicable constitutional law, which regulates the ownership structure of the companies in the Austrian electricity industry and also forms a basis for the company's articles of incorporation. This states: "With the exception of regional authorities and companies in which the regional authorities hold an interest of at least 51 per cent., the voting right in the General Meeting is restricted to 5 per cent. of the share capital."
C-Rule 34: The cooperation between the Managing Board and the Supervisory Board is defined in detail in the rules of procedure of the Supervisory Board and the Managing Board. A comprehensive reporting system, which embraces all group companies in accordance with a uniform standard, has been installed to optimise the flow of information and reports from the Managing Board to the Supervisory Board. In addition, a detailed report on all shareholdings is submitted on an annual basis. An appropriate adoption in the rules of procedure and the inclusion of all existing committees of the Supervisory Board is currently being aimed at.
C-Rule 38: In its 329th meeting on 13 September 2006, the Supervisory Board decided that a nomination to the Managing Board must be made prior to the nominee’s 66th birthday. This age limit shall be anchored in the rules of procedure at the next planned amendment.
C-Rule 45: The rule stating that Members of the Supervisory Board may not assume any functions on the boards of other enterprises which are competitors of the company is, with one exception, being complied with by all members of the Supervisory Board. A proposal for including this provision in the articles of incorporation is aimed at.
C-Rule 57: The articles of incorporation at this point and time do not provide for an age limit for being voted onto the Supervisory Board. An appropriate stipulation shall be aimed at the next amendment of the rules of procedure - 73 - of the Supervisory Board.
In accordance with Rule 53 of the Corporate Governance Code, the Supervisory Board defined the code guidelines as criteria for the independence of the elected Supervisory Board members. All elected members of the Supervisory Board have declared their independence in accordance with Rule 53 of the Corporate Governance Code. Supervisory Board member Hofer declared that he does not meet the requirements under Point 2 of the independence guidelines (business relationship to company). With the exception of the Supervisory Board members Hofer and Losch, all shareholders on the Supervisory Board meet the independence criteria defined in Rule 54 of the Corporate Governance Code (shareholding in excess of 10 per cent.).
Major Shareholders
The shareholding structure of the Guarantor is essentially characterised by the majority shareholding that is held by the Republic of Austria. Under constitutional law, 51 per cent. of the share capital of the Guarantor must remain in the ownership of the Republic of Austria. More than 25 per cent. of the share capital is held by the provincial energy suppliers TIWAG (> 5 per cent.), Wiener Stadtwerke Holding (> 10 per cent.) and EVN (> 10 per cent.). Less than 24 per cent. of the share capital is in free float.
On the basis of the last shareholder analysis, approx. 30 per cent. of the freely floated shares are in Great Britain, approx. 25 per cent. are in Switzerland with Germany and Austria each accounting for 15 per cent.. The remaining 15 per cent. are mainly in the hands of U.S. American investors but are also widely spread in Scandinavia, Benelux, Italy, France and Spain.
In accordance with constitutional law, which regulates the ownership structure of the companies in the Austrian electricity sector (BGBl I 1998/143 Art. 2) and also forms a basis for the company's articles of incorporation, the following voting restriction applies: "With the exception of regional authorities and companies in which the regional authorities hold an interest of at least 51 per cent., the voting right in the General Meeting is restricted to 5 per cent. of the share capital."
Financial Informations concerning Verbund Group’s Assets and Liabilities, Financial Position and Profits and Losses
Financial Information
The consolidated financial statements of Verbund Group for the financial years 2005 and 2006, respectively, comprise the following financial information relating to Verbund Group:
- the consolidated income statement as of 31 December 2005;
- the consolidated balance sheet as of 31 December 2005;
- the consolidated cash flow statement for the financial year ended 31 December 2005;
- consolidated statement of changes in equity and in capital shares repayable on demand;
- the Notes to the consolidated financial statements for the financial year ended 31 December 2005;
- the consolidated income statement as of 31 December 2006;
- the consolidated balance sheet as of 31 December 2006;
- the consolidated cash flow statement for the financial year ended 31 December 2006;
- 74 - - consolidated statement of changes in equity and in capital shares repayable on demand; and
- the Notes to the consolidated financial statements for the financial year ended 31 December 2006;
The consolidated financial statements of Verbund Group for the financial years 2005 and 2006, respectively, have been incorporated by reference into this Prospectus as set out under "Incorporation by Reference" above.
The consolidated financial statements (unaudited) of Verbund Group for the first quarter of the financial year 2007 comprise the following information relating to Verbund Group:
- the consolidated balance sheet as of 31 March 2007 (unaudited);
- the consolidated income statement as of 31 March 2007 (unaudited);
- the consolidated cash flow statement as of 31 March 2007 (unaudited); and
- consolidated statement of changes in equity and in capital shares repayable on demand (unaudited).
The consolidated financial statements of Verbund Group for the first quarter of the financial year 2007 have been incorporated by reference into this Prospectus as set out under "Incorporation by Reference" above.
Auditing of Historical Financial Information
The consolidated financial statements of Verbund Group for the fiscal years 2005 and 2006 have been produced on the basis of International Financial Reporting Standards (IFRS) and have been audited by the Old Auditors on the basis of International Standards of Auditing (IAS) and the Old Auditors have given their unqualified opinion to these financial statements. The audit opinions relating to the consolidated financial statements for the fiscal years 2005 and 2006 of Verbund Group are incorporated by reference into this Prospectus, as set out under "Incorporation by Reference" above.
The consolidated financial statements of Verbund Group for the first quarter of the financial year 2007 as of 31 March 2007 have not been audited.
Legal and Arbitration Proceedings
There have been no governmental, legal or arbitration proceedings (including any such proceedings which are pending or threatened of which the Guarantor is aware), during the period covering the last 12 months as from the date of this Prospectus which may have, or have had in the recent past, significant effects in the Guarantor’s and or Verbund Group’s financial position or profitability.
Significant change in Verbund Group's Financial Position
Save as disclosed in this Prospectus, there has been no significant change in Verbund Group's financial or trading position since the date of the last unaudited published interim financial statements of Verbund Group for the three months ended 31 March 2007 up to the date of this Prospectus.
Additional Information
Share Capital
The share capital comprises 308,200,000 shares (of which 151,018,000 are listed, bearer shares, known as "bearer shares category A" with the ISIN AT0000746409; 51 per cent. are owned by the Republic of Austria and the - 75 - remaining 49 per cent. are quoted on the stock exchange).
Contracts with regard to debt obligations
With regard to debt obligations, the Guarantor has entered into contracts which are material in its view and which economic parameters as of 31 March 2007 are set out below: debt from external lenders:
Amount Rate of Interest Maturity
Euro 127,822,970 7.500 % July 2044 Euro 5,112,919 4.750 % December 2008 Japanese Yen 12,900,000,000 4,100 % May 2015 Euro 17,850,000 2.975 % August 2009 Euro 105,000,000 2.600% June 2009 Euro 1,900,000 5.000 % April 2010 Euro 17,100,000 4.250 % September 2023 Euro 15,000,000 3.650 % perpetual
- 76 - ADDRESS LIST
THE ISSUER
VERBUND-International Finance B.V. Prins Bernhardplein 200 1097 JB Amsterdam the Netherlands
THE GUARANTOR
Österreichische Elektrizitätswirtschafts-Aktiengesellschaft Am Hof 6A 1010 Wien Republic of Austria
JOINT LEAD MANAGERS
Barclays Bank PLC Citigroup Global Markets Limited 5 The North Colonnade Citigroup Centre London E14 4BB Canada Square, Canary Wharf England London E14 5LB England
MANAGERS
Bank Austria Creditanstalt AG BNP Paribas Vordere Zollamtsstraße 13 10 Harewood Avenue 1030 Vienna London NW1 6AA Austria United Kingdom
CALYON Erste Bank 9, quai due President Paul Doumer der oesterreichischen Sparkassen AG 92920 Paris La Défense Cedex Graben 21 France 1010 Vienna Austria
Raiffeisen Zentralbank Österreich Aktiengesellschaft The Royal Bank of Scotland plc Am Stadtpark 9 135 Bishopsgate 1030 Vienna London EC2M 3UR Austria United Kingdom
FISCAL AGENT
Citibank, N.A. Agency and Trust 21st floor, Citigroup Centre Canada Square, Canary Wharf London E14 5LB England
- 77 - LUXEMBOURG LISTING AND PAYING AGENT
Dexia Banque International à Luxembourg 69, route d’Esch 2953 Luxembourg Luxembourg
PAYING AGENT IN AUSTRIA
Citibank International plc Austria Branch Am Kärntner Ring 11-13 1010 Vienna Austria
LEGAL ADVISERS
To the Managers as to Austrian law Wolf Theiss Schubertring 6 1010 Vienna Austria
To the Managers as to German law White & Case LLP Bockenheimer Landstrasse 20 60323 Frankfurt am Main Germany
AUDITORS TO THE ISSUER
As of 2007 For the financial year 2005 and 2006 Deloitte Accountants B.V. KPMG Audit Orlyplein 10 Rijnderslaan 10-20 1043 DP Amsterdam Burg P.O. Box 58110 1185 MC Amsterdam 1040 HC Amsterdam the Netherlands the Netherlands
AUDITORS TO THE GUARANTOR
For the financial year 2005 For the financial year 2006 KPMG Alpen-Treuhand GmbH Wirtschaftsprüfungs- KPMG Wirtschaftsprüfungs- und und Steuerberatungsgesellschaft Steuerberatungs GmbH Porzellangasse 51 Porzellangasse 51 1090 Vienna 1090 Vienna Austria Austria
As of 2007 Deloitte Wirtschaftsprüfungs GmbH Renngasse 1 Freyung 1013 Vienna Austria
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