Bond Prospectus 10-17

Transcription

Borealis AG
(an Austrian stock corporation with its seat in Vienna, registered with the Austrian companies register under
FN 269858 a)
Public Offering of up to EUR 200,000,000
Senior Fixed Rate Bonds 2010-2017
Borealis AG ("Borealis" or the "Issuer") intends to issue up to EUR 200,000,000 senior unsecured fixed rate bonds with a
denomination of EUR 1,000 each (the "Bonds") on 30 April 2010 (the "Issue Date") and to offer the Bonds between 26 April
2010 and 28 April 2010 to the public in Austria and Luxembourg (the "Offering"). The Issuer may shorten or extend the
subscription period at its own discretion.
The interest period of the Bonds begins on the Issue Date (including). The Bonds bear a coupon at a rate per annum which will
be fixed in accordance with a book building procedure involving institutional investors on or around 22 April 2010 (see
"Subscription and Sale"). Accrued interest is payable each year in arrear on 30 April, starting on 30 April 2011. The Bonds will
be redeemed on 30 April 2017 to the extent they have not previously been redeemed or purchased.
The Bonds constitute direct, unconditional, 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.
Application has been made to the Vienna Stock Exchange for the Bonds to be admitted to the Second Regulated Market
(Geregelter Freiverkehr).
The Bonds are governed by Austrian law.
This Prospectus has been approved by the Commission de Surveillance du Secteur Financier (the "CSSF") of the Grand-Duchy
of Luxembourg ("Luxembourg") in its capacity as competent authority under the Luxembourg Act on Securities Prospectuses
(loi relative aux prospectus pour valeurs mobilieres).
The Issuer has requested the CSSF to provide the competent authority in Austria with a certificate of approval attesting that this
Prospectus has been drawn up in accordance with Article 5.3 of Directive 2003/71/EC of the European Parliament and the
Council of 4 November 2003 (the "Prospectus Directive").
Prospective investors should be aware that an investment in the Bonds involves risks and that, if certain risks, in
particular those described in the chapter "Risk Factors" materialise, the investors may lose all or a very substantial
part of their investment. A prospective investor should conduct its own thorough analysis (including its own
accounting, legal and tax analysis) prior to deciding whether to invest in the Bonds as any evaluation of the suitability
for an investor of an investment in the Bonds depends upon a prospective investor's particular financial and other
circumstances.
This Prospectus does not constitute an offer to sell, or the solicitation of an offer to buy Bonds in any jurisdiction where such
offer or solicitation is unlawful. In particular, the Bonds have not been and will not be registered under the United States
Securities Act of 1933 (the "Securities Act").
This Prospectus constitutes a prospectus for the purpose of Article 5.3 of the Prospectus Directive and relevant implementing
legislation in Luxembourg.
JOINT LEAD MANAGERS
Erste Group Bank AG
Prospectus dated 2 April 2010
UniCredit Bank Austria AG
RESPONSIBILITY STATEMENT
Borealis, with its seat in Vienna and its business address at Wagramerstraße 17-19, 1220
Vienna, Austria, registered with the Austrian companies register under registration number
FN 269858 a, assumes responsibility for the information contained in this Prospectus and
hereby declares that, having taken all reasonable care to ensure that such is the case, the
information contained in this Prospectus is, to the best of its knowledge, in accordance with
the facts and contains no omission likely to affect its import.
NOTICE
This Prospectus does not constitute an offer to sell or a solicitation of an offer to buy any
securities other than the Bonds offered hereby and does not constitute an offer to sell or a
solicitation of an offer to buy any Bonds offered hereby to any person in any jurisdiction in
which it is unlawful to make any such offer or solicitation to such person. Neither the delivery
of this Prospectus nor any sale made in connection herewith shall, under any circumstances,
create an implication that there has been no change in the affairs of Borealis or its affiliated
companies (together the "Borealis Group") since the date hereof or that there has been no
adverse change in the financial position of Borealis and the Borealis Group since the date
hereof or that any other information supplied in connection with the Offering is correct as of
any date subsequent to the date on which it is supplied or, if different, the date indicated in
the document containing the same. Any material new circumstances or any material
incorrectness or inaccuracy as to the statements contained in the Prospectus that could
influence the assessment of the Bonds issued in the Offering and that occur or are
determined between the approval of the Prospectus by the CSSF and the final end of the
public offer, or if earlier, the admission to trading on a regulated market of Bonds under the
Prospectus will be included and published in a supplement to the Prospectus in accordance
with the Prospectus Directive and relevant implementing legislation in Luxembourg.
This Prospectus has been prepared by the Issuer in connection with the Offering solely for the
purpose of enabling prospective investors to consider the purchase of the Bonds.
Reproduction and distribution of this Prospectus or disclosure or use of the information
contained herein for any purpose other than considering an investment in the Bonds is
prohibited. The information contained in this Prospectus has been provided by Borealis and
other sources identified herein. No person has been authorised to give any information or to
make any representation not contained in this Prospectus in connection with the Offering and,
if given or made, any such information or representation should not be relied upon as having
been authorised by Borealis.
The contents of this Prospectus are not to be construed as legal, business or tax advice.
Each prospective investor should consult its own lawyer, financial adviser or tax adviser for
legal, financial or tax advice.
This document comprises a Prospectus for the public offering of the Bonds, issued by
Borealis and for the admission to listing of the Bonds on the Second Regulated Market
(Geregelter Freiverkehr) of the Vienna Stock Exchange. This document has been prepared in
accordance with annexes IV and V of Commission Regulation (EC) No 809/2004 of 29 April
2004, as amended.
The Bonds offered hereby have not been and will not be registered under the Securities Act
or with any authority of any state of the US, or the applicable securities laws of Australia,
Canada, Japan, and the United Kingdom, and may not be offered or sold in the US or to, or
for the account of, any US persons or to any person resident in Australia, Canada, Japan, the
United Kingdom and the US.
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The most recent financial information contained in this Prospectus and incorporated by
reference are the English translations of the audited consolidated financial statements dated
31 December 2009.
In this Prospectus, unless otherwise specified or unless the context otherwise requires,
references to "EUR", "Euro" and "€" are references to the currency introduced at the third
stage of European economic and monetary union pursuant to the Treaty establishing the
European Community (as amended from time to time).
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Table of Contents
RESPONSIBILITY STATEMENT........................................................................................................ 2
NOTICE................................................................................................................................................... 2
GENERAL INFORMATION.................................................................................................................. 5
SUMMARY OF THE PROSPECTUS ................................................................................................. 7
GERMAN TRANSLATION OF SUMMARY ..................................................................................... 14
RISK FACTORS .................................................................................................................................. 22
TERMS AND CONDITIONS OF THE BONDS ............................................................................... 31
USE OF PROCEEDS ......................................................................................................................... 49
BOREALIS AG ..................................................................................................................................... 50
BUSINESS OVERVIEW ..................................................................................................................... 59
MARKETS AND SECTOR ENVIRONMENT................................................................................... 62
MANAGEMENT AND SUPERVISORY BOARD............................................................................. 64
SELECTED FINANCIAL INFORMATION OF THE ISSUER ........................................................ 69
TAXATION............................................................................................................................................ 70
SUBSCRIPTION AND SALE ............................................................................................................. 74
SELLING RESTRICTIONS ................................................................................................................ 76
GENERAL INFORMATION................................................................................................................ 79
GLOSSARY AND LIST OF ABBREVIATIONS AND DEFINITIONS ........................................... 81
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General Information
FORWARD-LOOKING STATEMENTS
This Prospectus contains statements under the captions "Prospectus Summary", "Risk
Factors" and elsewhere that are, or may be deemed to be, "forward-looking statements". In
some cases, these forward-looking statements can be identified by the use of forward-looking
terminology, including the words "believes", "estimates", "anticipates", "expects", "intends",
"targets", "may", "will", "plans", "continue" or "should" or, in each case, their negative or other
variations or comparable terminology or by discussions of strategies, plans, objectives, goals,
future events or intentions. The forward-looking statements contained in this Prospectus
include certain "targets". These targets reflect goals that Issuer is aiming to achieve and do
not constitute forecasts.
The forward-looking statements contained in this Prospectus include all matters that are not
historical facts and include statements regarding the Issuers' intentions, beliefs or current
expectations concerning, among other things, the results of operations, financial condition,
liquidity, prospects, growth, strategies and dividend policy and the industries and markets in
which the Issuer operates. By their nature, forward-looking statements involve known and
unknown risks and uncertainties because they relate to events, and depend on
circumstances, that may or may not occur in the future. Forward-looking statements are not
guarantees of future performance. Prospective investors should not place undue reliance on
these forward-looking statements.
Many factors could cause the actual results, performance or achievements of the Issuer to be
materially different from any future results, performance or achievements that may be
expressed or implied by such forward-looking statements. Some of these factors are
discussed in more detail under "Risk Factors" and elsewhere.
Should one or more of these risks or uncertainties occur, or should underlying assumptions
prove incorrect, actual results may vary materially from those described in this Prospectus as
anticipated, believed, estimated or expected. The Issuer does not intend, and does not
assume any obligation, to update forward-looking statements set forth in this Prospectus.
DOCUMENTS INCORPORATED BY REFERENCE
This Prospectus should be read and construed in conjunction with the following documents
which are hereby incorporated into the Prospectus:
Document / Heading
Annual Report 2008 containing the English translation of the
audited consolidated financial statements for the year 2008
English translation of the auditors’ report
English translation of the consolidated income statement
English translation of the consolidated balance sheet
English translation of the consolidated statement of changes in
equity
English translation of the consolidated cash flow statement
English translation of the notes
Page reference
in the relevant
financial report
54-55
58
60-61
62
63
64 -70
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Document / Heading
Annual Report 2009 containing the English translation of the
audited consolidated financial statements for the year 2009
English translation of the auditors’ report
English translation of the consolidated income statement
English translation of the consolidated balance sheet
English translation of the consolidated statement of changes in
equity
English translation of the consolidated cash flow statement
English translation of the notes
Page reference
in the relevant
financial report
54-55
58
60-61
62
63
64-71
For the avoidance of doubt, such parts of the annual report of the Issuers for the financial
years 2008 and 2009, respectively, which are not explicitly listed in the table above, are not
incorporated by reference into this Prospectus. Any information not listed above, but included
in the documents incorporated by reference is given for information purposes only.
The above documents shall be deemed to be incorporated in, and form part of, this
Prospectus, save that any statement contained in such a document shall be deemed to be
modified or superseded by the Issuer for the purpose of this Prospectus to the extent that a
statement contained in this Prospectus modifies or supersedes such earlier statement
(whether expressly, by implication or otherwise). Any statement so modified or superseded
shall not be deemed, except as so modified or superseded, to constitute a part of this
Prospectus.
Any document incorporated by reference into this Prospectus will be available for inspection
at the specified office of the Issuer, Wagramerstraße 17-19, 1220 Vienna, Austria, during
normal business hours, as long as the Bonds are outstanding and in electronic form on the
website of the Issuer under "www.borealisgroup.com" as well as on the website of the
Luxembourg Stock Exchange under "www.bourse.lu".
SUPPLEMENT TO THE PROSPECTUS
The Issuer is obliged by the provisions of the Prospectus Directive and relevant implementing
legislation in Luxembourg, that if at any time during the duration of the Offering there is a
significant new factor, material mistake or inaccuracy relating to information contained in this
Prospectus which is capable of affecting the assessment of any Bonds and which arises or is
noted between the time when the Prospectus is approved and the final closing of the Bonds
to the public or, as the case may be, the time when trading on a regulated market begins, the
Issuer shall prepare a supplement to this Prospectus and supply to the CSSF such number of
copies of such supplement as may be requested and relevant applicable legislation require.
SOURCES OF INFORMATION
The financial figures contained in this Prospectus have been – if not mentioned otherwise –
retrieved from the audited consolidated annual financial statements for the business years
ending 31 December 2008 and 31 December 2009. The Issuer confirms that such information
has been accurately reproduced and that, so far as it is aware, no facts have been omitted
which would render the reproduced information inaccurate or misleading.
Information in this Prospectus which has been sourced from third parties has been accurately
reproduced and, as far as the Issuer is aware and is able to ascertain from information
published by that third party, no facts have been omitted which would render the reproduced
information inaccurate or misleading.
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SUMMARY OF THE PROSPECTUS
The following summary should be read as an overview of this Prospectus, and any decision to
invest in the Bonds should be based on consideration of the Prospectus as a whole, including
the documents incorporated by reference and the risks of investing in the Bonds as set out in
"Risk Factors". This summary is not complete and does not contain all the information that
investors should consider in connection with any decision relating to the Bonds.
Where a claim relating to the information contained in this Prospectus is brought before a
court in a member state of the EU, the plaintiff may, under the national legislation of the state
where the claim is brought, be required to bear the costs of translating this Prospectus before
the legal proceedings are initiated. In the event that such legal proceedings are initiated
before a court in Austria, a German translation of the Prospectus may be required, and the
costs thereof will have to be borne initially by the plaintiff investor, who will be reimbursed for
such costs, or parts thereof, by the other party or parties to the proceedings only if the plaintiff
investor is successful in such proceedings.
Persons, who have submitted the summary including any translation thereof and applied for
its notification, can be made liable, but only if the summary is misleading, inaccurate or
inconsistent when read together with the other parts of the prospectus.
Terms not defined in this summary have the same meaning as in the terms and conditions of
the Bonds (the "Terms and Conditions of the Bonds").
THE BOREALIS GROUP
Borealis AG is a stock corporation (Aktiengesellschaft) incorporated and existing under
Austrian law and has its business address at Wagramerstraße 17-19, 1220 Vienna, Austria.
Its telephone number is +43 (0) 1 224 00-0.
The Issuer's share capital (Grundkapital) amounts to EUR 300,000 and is divided into
300,000 no-par value bearer shares (Stückaktien). The share capital of the Issuer is fully
paid-in. The Issuer has the following two shareholders: International Petroleum Investment
Company of Abu Dhabi with a direct and indirect (via Denmark Holdings ApS) participation of
64 per cent., and OMV Aktiengesellschaft with a direct and indirect (via OMV Refining &
Marketing GmbH) participation of 36 per cent.
Borealis operates within two business segments: one specialised in the development,
production and marketing of a range of plastic materials, which have the generic name
"polyolefins". This business segment comprises polyethylene ("PE") and polypropylene
("PP"). These products are further processed by customers for either industrial or consumer
end-use applications. The other business segment specialises in producing base chemicals,
including ethylene, propylene, phenol and aromatics, melamine and plant nutrients.
The polyolefins business segment provides PE and PP to a diverse range of industries. The
Issuer focuses on generating value-added solutions for the strategic areas infrastructure,
advanced packaging, and mobility.
The base chemicals business segment comprises the business units feedstocks and olefins,
phenol and aromatics, and melamine and plant nutrients.
While Europe has historically been Borealis’ core market, the Issuer's footprint today is
considerably more global with production facilities, innovation centres and service centres
serving customers in more than 120 countries.
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Polyolefins and associated products represented in 2009 approximately 71 per cent. of
Borealis’ sales while base chemicals and associated products generated approximately 28
per cent. of sales (source: Annual Report 2009).
Borealis’ most important geographic markets in terms of 2009 based on revenue contribution
were Europe (83 per cent. of revenues), the Middle East & Asia (8 per cent. of revenues) and
the United States (2 per cent. of revenues).
SUMMARY OF THE OFFERING
Issuer
Borealis AG
Issue Size
Up to EUR 200,000,000
Denomination
The Bonds will be issued in bearer form in denominations of
EUR 1,000.
Maturity
The Bonds will be redeemed on 30 April 2017 (the
"Redemption Date") to the extent they have not previously
been redeemed or purchased.
Issue Price
The issue price is expected to be between 98 per cent. and
102 per cent. of the principal amount. The Issue Price and
the interest rate will be determined and published following
a book building procedure involving institutional investors.
The Issue Price and the interest rate will be published in
accordance with article 10 of the Luxembourg Law on
Prospectuses dated 10 July 2005.
Issue Date
The issue date (the "Issue Date") will be on 30 April 2010.
Subscription Period
The subscription period is expected to be from 26 April 2010
(including) and 28 April 2010 (including). The subscription
period may be shortened or extended at the discretion of
the Issuer.
Joint Lead Managers
Erste Group Bank AG
Use of proceeds
The Issuer intends to use the net proceeds of the issue of
the Bonds for general corporate purposes, including the
strengthening of its financial position and to expand the
Issuer's funding options. In particular, the proceeds are
intended to be used for refinancing debt related to recent
investments, among others for the new high-pressure, lowdensity polyethylene (LDPE) plant in Sweden, which is one
of Borealis' largest investments in Europe. In addition, the
restructuring of the existing debt portfolio, terming out
8
Borealis' debt and optimising the overall finance structure is
part of this initiative.
Status
The Bonds constitute direct, unconditional, unsecured and
unsubordinated obligations of the Issuer, ranking pari passu
with all other direct, unconditional, unsecured and
unsubordinated obligations of the Issuer, save for any
obligations required to be preferred by law.
Interest
Each Bond bears interest on its outstanding principal
amount at a fixed rate per annum, which will be fixed
following a book building procedure involving institutional
investors on or around 22 April 2010. The interest rate will
be published in accordance with article 10 of the
Luxembourg Law on Prospectuses dated 10 July 2005.
Interest is payable annually in arrear on 30 April of each
year, commencing on 30 April 2011.
Repurchase at the option of
the Issuer
The Issuer may at any time purchase Bonds in the open
market or otherwise and at any price. Bonds so acquired
may be cancelled, held or resold.
Negative Pledge
During the term of the Bonds, the Issuer undertakes, but no
longer than until all amounts in respect of interest and
principal for the Bonds have been provided to the Paying
Agent:
(a)
for other Capital Market Indebtedness (as defined in
the Terms and Conditions) as well as for guarantee
obligations or liabilities for other Capital Market
Indebtedness
(i)
not to create any security, and
(ii) to cause third parties to not create any security
over their assets to secure Capital Market
Indebtedness of the Issuer or its Subsidiaries or
guarantee obligations or liabilities for other Capital
Market Indebtedness of the Issuer or its Subsidiaries,
unless the Bondholders at the same time and in the
same rank participate in such security or in any other
security, which has been recognised as equal security
by an internationally recognised public accountant that
is independent from an existing auditor of the Issuer or
any of its subsidiaries; and
(b)
to procure that its Subsidiaries (as defined in the
Terms and Conditions) in relation to other Capital
Market Indebtedness as well as to guarantee
obligations or liabilities for other Capital Market
Indebtedness
9
(i)
do not create any security, and
(ii) cause third parties to not create any security
over their assets to secure Capital Market
Indebtedness of the Issuer or its Subsidiaries or
guarantee obligations or liabilities for other Capital
Market Indebtedness of the Issuer or its Subsidiaries,
unless the Bondholders at the same time and in the
same rank participate in such security or in any other
security, which has been recognised as equal security
by an internationally recognised public accountant that
is independent from an existing auditor of the Issuer or
any of its subsidiaries.
Events of Default
Each Bondholder shall be entitled to terminate the Bonds
and to demand their immediate redemption at their principal
amount together with interest accrued until the repayment
date if an Event of Default (as defined in the Terms and
Conditions) occurs.
Change of Control
Each Bondholder shall be entitled to terminate the Bonds
and to demand their immediate redemption at their principal
amount together with interest accrued until the repayment
date, if any, if a Change of Control (as defined in the Terms
and Conditions) occurs, except where an internationally
recognised rating agency assigns to the Issuer within 60
days after such Change of Control a rating of at least "BBB"
in relation to its long-term senior bonds.
Taxes
All payments of principal and interest in respect of the
Bonds will 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 the Republic of
Austria or any political subdivision or any authority of or in
the Republic of Austria that has power to tax, unless the
Issuer is compelled by a law or other regulation to make
such withholding or deduction. In that event, the Issuer will
pay, subject to the provisions of § 7 of the Terms and
Conditions, such additional amounts as will result in receipt
by the Bondholders of the same amounts as they would
have received if no such withholding or deduction had been
required.
Paying Agent
The paying agent is Erste Group Bank AG.
Listing
Application has been made to the Vienna Stock Exchange
for the Bonds to be admitted to the Second Regulated
Market (Geregelter Freiverkehr).
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Governing law
The Bonds are governed by Austrian law.
Jurisdiction
To the extent permitted by mandatory law, the courts
competent for Vienna, Inner City, shall have exclusive
jurisdiction for disputes in connection with the Bonds,
without limiting the right of any Bondholder to take
proceedings in any other court of competent jurisdiction.
Selling restrictions
The Bonds are not being offered, sold or delivered within
the United States or to U.S. persons nor persons in Canada,
Japan or the United Kingdom. For a description of these
and other restrictions on sale and transfer see "Selling
Restrictions".
International Securities
Identification Number (ISIN)
AT0000A0H0V3
SUMMARY OF RISK FACTORS
The Bondholders are subject to a number of risks which – in case they materialise – could
have a material adverse effect on the Issuer's business, results of operations and financial
condition and the value of the Bonds. Each of the risks highlighted below should be carefully
considered together with the other information contained in this Prospectus, prior to any
investment decision. Prospective investors should note that the risks described below are not
the only risks relating to the Issuer and its business and to the Bond. The Issuer has
described only those risks that it considers to be material and of which it is currently aware.
The risks are described in detail under the caption "Risk Factors" (page 22 et seq). The risks
are, inter alia, the following:
Risks regarding the Issuer and its business activities:
Markets and general business risks
-
The Issuer is subject to competition in all markets where it is active
-
The Issuer is subject to risks in the petrochemical industry, such as its cyclicality
-
The Issuer is subject to market risks in connection with its dependency on the supply
market (commodity risk)
-
The Issuer depends on demand from plastic and melamine processing industries and
from agriculture
-
The Issuer may not be able to continue its business strategy
-
The Issuer is subject to the risk of loss of key personnel
-
The Issuer may be exposed to trade receivables credit risk
11
-
There is a risk of adversely changing economic and political environment
-
The Issuer is subject to force majeure risks or the risk of acts of sabotage
-
The Issuer is exposed to environmental risks
-
The Issuer is subject to risks associated with environmental and health and safety
regulations which result in costs relating to compliance and remediation that may
adversely affect its business, prospects and/or results of operations
-
The Issuer subject to the risk of property damage
-
The Issuer is subject to risks related to product liability
-
The Issuer is subject to the risk of adversely changing legislative environments in all
markets where it is active (regulatory risk)
-
The Issuer may experience operational and/or technological problems which may
delay or hinder daily activities or progress of ongoing and planned projects
-
The Issuer is exposed to risks relating to disputes and litigation
Counterparty risk
-
The Issuer is subject to counterparty risks in connection with its dependency on the
supply market
-
The Issuer is subject to risks in connection with its exposure to subcontractors and
contractual partners
-
The Issuer is subject to risks in connection with its dependency on its shareholders
and joint venture partners
-
The Issuer is exposed to liquidity risks
-
Guarantees of the Issuer for the benefit of their subsidiaries
Financial risks
-
The Issuer is subject to risks in connection with financial and other covenants under
certain credit facilities
-
The Issuer is subject to currency risk
-
The Issuer is subject to interest rate risks
Risks regarding the Bonds
-
There is a risk of partial or total failure of the Issuer to make interest and/or
redemption payments that the Issuer is obliged to make under the Bonds
-
Investors in the Bonds assume the risk that the credit spread of the Issuer widens
and that as a consequence the price of the Bonds falls
-
The Investors face a risk in case of an early redemption and in case of reinvestment
12
-
The Issuer may incur additional indebtedness ranking pari passu with the Bonds
-
Fixed rate securities are exposed to specific market risks
-
There is a risk of inflation
-
The Bonds are subject to liquidity risk
-
The market value of the Bonds depends on a number of factors and may fall
-
There is a risk that trading in the Bonds will be suspended, interrupted or terminated
-
If a loan or credit is used to finance the acquisition of the Bonds, the loan may
significantly increase the risk of a loss
-
There is a risk that incidental costs related in particular to the purchase and sale of
the Bonds may significantly or completely reduce the profit potential of the Bonds
-
Investors have to rely on the functionality of the relevant clearing system
-
The tax impact of an investment in the Bonds should be carefully considered
-
Changes in applicable laws, regulations or regulatory policies may have an adverse
effect on the Issuer, the Bonds and the investors
SELECTED FINANCIAL INFORMATION OF THE ISSUER
The financial data provided below has been derived from the Issuer's audited consolidated
annual financial statements for the business years ended 31 December 2008 and 31
December 2009:
Key figures in EUR million
(rounded)
Financial year 2009
Financial year 2008
4,714
6,697
38
239
EBITDA
260
426
Gearing
43%
47%
4,816
4,828
Net Sales
Net profit for the year
Total Assets
Source: Audited consolidated annual financial statements of the Issuer for the business years ended 31 December 2008 and 31
December 2009
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German Translation of Summary
Die folgende Zusammenfassung sollte nur als Einleitung zum Prospekt verstanden werden
und jede Kaufentscheidung sollte auf dem Prospekt als Ganzes, einschließlich der durch
Verweis einbezogenen Dokumente und der Risikofaktoren (beschrieben in der Rubrik "Risk
Factors"), beruhen. Diese Zusammenfassung ist nicht vollständig und enthält nicht alle
Informationen, welche Anleger benötigen, um eine Kaufentscheidung zu treffen.
Für den Fall, dass vor Gericht Ansprüche aufgrund der in diesem Prospekt enthaltenen
Informationen geltend gemacht werden, könnte der als Kläger auftretende Anleger in
Anwendung der einzelstaatlichen Rechtsvorschriften der EWR-Vertragsstaaten die Kosten für
die Übersetzung des Prospekts vor Prozessbeginn zu tragen haben. Für den Fall, dass
Ansprüche vor einem österreichischen Gericht geltend gemacht werden, könnte es sein, dass
eine deutsche Übersetzung dieses Prospektes notwendig ist und die damit verbundenen
Kosten vom als Kläger auftretenden Anleger zu tragen sind. Der als Kläger auftretende
Anleger könnte nur bei erfolgreicher Durchsetzung seiner Ansprüche den Ersatz von
Übersetzungskosten ganz oder teilweise geltend machen.
Diejenigen Personen, die die Zusammenfassung einschließlich einer Übersetzung davon
vorgelegt und deren Meldung beantragt haben, können haftbar gemacht werden, jedoch nur
für den Fall, dass die Zusammenfassung irreführend, unrichtig oder widersprüchlich ist, wenn
sie zusammen mit den anderen Teilen des Prospekts gelesen wird.
Worte und Ausdrücke, die in den Anleihebedingungen definiert sind, haben in diesem
Abschnitt dieselbe Bedeutung.
DIE BOREALIS GRUPPE
Borealis AG mit Sitz in Wien und der Geschäftsanschrift Wagramerstraße 17-19, 1220 Wien,
eingetragen im Firmenbuch unter der FN 269858 a, ist eine nach österreichischem Recht
eingetragene Aktiengesellschaft. Ihre Telefonnummer ist +43 (0) 1 224 00-0.
Das Grundkapital der Emittentin beträgt EUR 300.000 und setzt sich aus 300.000
nennwertlosen Stückaktien zusammen. Das Grundkapital ist zur Gänze einbezahlt. Die
Emittentin hat die folgenden beiden Aktionäre: International Petroleum Investment Company
aus Abu Dhabi mit einem direkten und indirekten (via Denmark Holdings ApS) Anteil von
64 %, und OMV Aktiengesellschaft mit einem direkten und indirekten (via OMV Refining &
Marketing GmbH) Anteil von 36 %.
Borealis ist in zwei Geschäftsbereichen tätig: Ein Bereich ist auf die Entwicklung, Produktion
und das Marketing verschiedener Plastikmaterialien mit dem generischen Namen
"Polyolefine" spezialisiert. Dieser Bereich besteht aus Polyethylen ("PE") und Polypropylen
("PP"). Diese Produkte werden von Kunden von Borealis zu Endnutzungsanwendungen
weiterverarbeitet. Der andere Bereich ist auf die Produktion von Basischemikalien,
einschließlich Ethylen, Propylen, Phenol und Aromaten, Melamin und Pflanzennährstoffen
spezialisiert.
Der Polyolefin-Geschäftsbereich versorgt eine Vielzahl von Branchen mit PE und PP. Die
Emittentin fokussiert sich auf Mehrwertlösungen für die strategischen Bereiche Infrastruktur,
Verpackungen und Mobilität .
Der Basischemikalien-Geschäftsbereich besteht aus den Abteilungen Rohstoffe und Olefine,
Phenol und Aromaten sowie Melamin und Pflanzennährstoffen.
14
Historisch betrachtet ist Europa der Kernmarkt der Emittentin. Jedoch verfügt die Emittentin
mittlerweile über Produktionsstätten, Innovationszentren und Servicezentren, die Kunden in
mehr als 120 Ländern bedienen.
2008 machten Polyolefine und damit verbundene Produkte ca. 71 % der Erträge der
Emittentin aus; Basischemikalien und damit verbundene Produkte ca. 28 % (Quelle:
Konzernabschluss 2009).
Die wichtigsten geographischen Märkte der Emittentin in Bezug auf Einnahmen im Jahre
2009 waren Europa (83%), der Nahe Osten und Asien (8%) und die Vereinigten Staaten
(2 %).
ZUSAMMENFASSUNG DES ANGEBOTS
Emittentin
Borealis AG
Gesamtnennbetrag
Bis zu EUR 200.000.000
Stückelung
Die Teilschuldverschreibungen werden als auf den Inhaber
lautende Teilschuldverschreibungen mit einem Nennbetrag
von je EUR 1.000 begeben.
Laufzeit
Die Teilschuldverschreibungen werden am 30.04.2017
getilgt, soweit sie nicht vorher zurückbezahlt oder
zurückgekauft wurden.
Ausgabekurs
Der Ausgabekurs wird voraussichtlich zwischen 98 % und
102 % des Nominales liegen. Der Ausgabekurs und der
Zinssatz werden nach einem Bookbuilding-Verfahren mit
institutionellen Investoren festgesetzt und veröffentlicht. Der
Ausgabekurs und der Zinssatz werden gemäß Artikel 10
des luxemburgischen Prospektgesetztes vom 10.07.2005
veröffentlicht.
Ausgabetag
Die Teilschuldverschreibungen werden am 30.04.2010
begeben.
Angebotsfrist
Die Teilschuldverschreibungen werden voraussichtlich vom
26.4.2010
(einschließlich)
bis
zum
28.4.2010
(einschließlich) öffentlich angeboten. Der Emittentin bleibt
eine Verkürzung oder Verlängerung der Angebotsfrist in
freiem Ermessen vorbehalten.
Joint Lead Manager
Erste Group Bank AG
Verwendung des Erlöses der Die Emittentin plant, den Nettoerlös aus der Emission der
15
Emission
Teilschuldverschreibungen für allgemeine Geschäftszwecke
zu nutzen, einschließlich zur Stärkung ihrer Finanzposition
und zur Erweiterung ihrer Finanzierungsmöglichkeiten.
Insbesondere soll der Erlös zur Refinanzierung von
Verbindlichkeiten für kürzlich erfolgte Investitionen (unter
anderem
das
neue
Hochdruckpolyethylenwerk
in
Schweden, welches eine der größten Investitionen von
Borealis in Europa ist) verwendet werden. Zusätzlich sind
die Restrukturierung bestehender Verbindlichkeiten, die
Abreifung von Schulden und das Optimieren der
Finanzierungsstruktur Teil dieser Initiative.
Rang der
Teilschuldverschreibungen
Die Teilschuldverschreibungen begründen unmittelbare,
unbedingte, nicht nachrangige und nicht besicherte
Verbindlichkeiten der Emittentin und stehen im gleichen
Rang untereinander und mindestens im gleichen Rang mit
allen anderen gegenwärtigen und zukünftigen nicht
nachrangigen und nicht besicherten Verbindlichkeiten der
Emittentin, soweit bestimmte zwingende gesetzliche
Bestimmungen nichts anderes vorschreiben.
Verzinsung
Der
jeweils
ausstehende
Nennbetrag
der
Teilschuldverschreibungen wird jährlich fix verzinst. Der
Zinssatz wird nach einem Bookbuilding-Verfahren mit
institutionellen Investoren am oder um den 22.04.2010
festgesetzt. Der Zinssatz wird gemäß Artikel 10 Abs 1 des
luxemburgischen Prospektgesetztes vom 10.07.2005
veröffentlicht. Die Zinsen sind jährlich nachträglich am 30.04
jeden Jahres, beginnend mit dem 30.04.2011, zahlbar.
Rückkauf nach Wahl der
Emittentin
Die Emittentin kann jederzeit Teilschuldverschreibungen auf
dem freien Markt oder anderweitig sowie zu jedem
beliebigen
Preis
kaufen.
Derartig
erworbene
Teilschuldverschreibungen können entwertet, gehalten oder
wieder veräußert werden.
Negativverpflichtung
Die Emittentin verpflichtet sich für die Laufzeit der
gegenständlichen Anleihe, längstens jedoch bis zu dem
Zeitpunkt, an dem alle Beträge an Kapital und Zinsen für die
der
gemäß
diesen
Anleihebedingungen bestellten Zahlstelle vollständig zur
Verfügung gestellt worden sind:
(a)
für andere Kapitalmarktverbindlichkeiten sowie für
Verbindlichkeiten unter Garantien oder Haftungen für
andere Kapitalmarktverbindlichkeiten
(i)
keine Sicherheiten zu bestellen, und
(ii) Dritte zu veranlassen, zur Besicherung der von
der Emittentin oder ihren Tochtergesellschaften
aufgenommenen Kapitalmarktverbindlichkeiten und
Verbindlichkeiten
der
Emittentin
oder
ihrer
Tochtergesellschaften
unter
Garantien
oder
16
Haftungen für Kapitalmarktverbindlichkeiten keine
Sicherheiten zu bestellen oder Haftungen zu
übernehmen,
ohne
jeweils
sicherzustellen,
dass
die
Anleihegläubiger zur gleichen Zeit und im gleichen
Rang an solchen Sicherheiten oder Haftungen oder
an anderen Sicherheiten oder Haftungen, die von
einem vom bestehenden Abschlussprüfer der
Emittentin
oder
ihrer
Tochterunternehmen
unabhängigen,
international
anerkannten
Wirtschaftsprüfer
als
zumindest
gleichwertige
Sicherheit
oder
Haftung
anerkannt
werden,
teilnehmen; und
(b)
dafür
Sorge
zu
tragen,
dass
ihre
für
andere
Kapitalmarktverbindlichkeiten
sowie
für
Verbindlichkeiten unter Garantien oder Haftungen für
andere Kapitalmarktverbindlichkeiten
(i)
keine Sicherheiten bestellen oder Haftungen
übernehmen, und
(ii) Dritte veranlassen, zur Besicherung der von der
Emittentin
oder
ihren
aufgenommenen Kapitalmarktverbindlichkeiten und
den Verbindlichkeiten der Emittentin oder ihrer
unter
Garantien
oder
Haftungen für Kapitalmarktverbindlichkeiten keine
Sicherheiten zu bestellen oder Haftungen zu
übernehmen,
ohne jeweils unverzüglich sicherzustellen, dass die
Anleihegläubiger zur gleichen Zeit und im gleichen
Rang an solchen Sicherheiten oder Haftungen oder
an anderen Sicherheiten oder Haftungen, die von
einem vom bestehenden Abschlussprüfer der
Emittentin
oder
ihrer
Tochterunternehmen
unabhängigen,
international
anerkannten
Wirtschaftsprüfer
als
zumindest
gleichwertige
Sicherheit
oder
Haftung
anerkannt
werden,
teilnehmen.
Kündigungsgründe
Jeder
Anleihegläubiger
ist
berechtigt,
seine
Teilschuldverschreibungen zu kündigen und deren sofortige
Rückzahlung zum Nennbetrag, zuzüglich allfälliger bis zum
Tage der Rückzahlung aufgelaufener Zinsen zu verlangen,
falls einer der in den Anleihebedingungen beschriebenen
Kündigungsgründe eintritt.
Kontrollwechsel
Jeder
Anleihegläubiger
ist
berechtigt,
seine
Teilschuldverschreibungen zu kündigen und deren sofortige
Rückzahlung zum Nennbetrag, zuzüglich allfälliger bis zum
Tage der Rückzahlung aufgelaufener Zinsen zu verlangen,
wenn ein in den Anleihebedingungen beschriebener
17
Kontrollwechsel eintritt, es sei denn, eine international
anerkannte Ratingagentur erteilt der Emittentin innerhalb
von 60 Tagen nach einem derartigen Kontrollwechsel ein
Rating von zumindest "BBB" in Bezug auf deren langfristige,
nicht-nachrangige Anleihen.
Steuern
Sämtliche Zahlungen von Kapital und Zinsen in Bezug auf
die Teilschuldverschreibungen werden ohne Einbehalt oder
Abzug von Steuern, Abgaben, Festsetzungen oder
behördlichen Gebühren jedweder Art geleistet, die von der
Republik Österreich oder einer ihrer Gebietskörperschaften
oder Behörden mit der Befugnis zur Erhebung von Steuern
auferlegt,
erhoben,
eingezogen,
einbehalten
oder
festgesetzt werden, es sei denn, ein solcher Einbehalt oder
Abzug ist gesetzlich vorgeschrieben. In einem solchen Falle
wird die Emittentin, gemäß § 7 Anleihebedingungen, solche
zusätzlichen Beträge zahlen, so dass die Anleihegläubiger
die Beträge erhalten, die sie ohne Einbehalt oder Abzug
erhalten hätten.
Zahlstelle
Die Zahlstelle ist Erste Group Bank AG.
Börseeinführung
Die Zulassung der Teilschuldverschreibungen zum Handel
im Geregelten Freiverkehr an der Wiener Börse wurde
beantragt.
Anwendbares Recht
Die
österreichischem Recht.
Gerichtsstand
Der Gerichtsstand ist das zuständige Gericht für Wien,
Innere Stadt, soweit dies gesetzlich zulässig ist. Die
Gerichtsstandsvereinbarung beschränkt nicht das Recht der
Anleihegläubiger, Verfahren vor einem anderen gesetzlich
zuständigen Gericht anzustrengen.
Verkaufsbeschränkungen
Die Teilschuldverschreibungen werden weder in den USA
noch an Personen aus den USA, Kanada, Japan und dem
Vereinigten Königreich angeboten oder verkauft. Die
Verkaufsbeschränkungen sind genauer unter der Rubrik
"Selling Restrictions" beschrieben.
International Securities
Identification Number (ISIN)
AT0000A0H0V3
unterliegen
18
ZUSAMMENFASSUNG DER RISIKOFAKTOREN
Die Anleihegläubiger unterliegen einer Reihe von Risiken, die im Falle ihres Eintretens einen
wesentlichen nachteiligen Einfluss auf die Geschäftstätigkeit, die Finanz-, Vermögens und
Ertragslage der Emittentin und den Wert der Teilschuldverschreibungen haben können. Vor
dem Treffen einer Kaufentscheidung sollte jedes der unten beschriebenen Risiken
gemeinsam mit den im Prospekt enthaltenen Informationen berücksichtigt werden. Potentielle
Investoren sollten beachten, dass die unten beschriebenen Risiken nicht die einzigen Risiken
in Bezug auf die Emittentin, die Geschäftstätigkeit der Emittentin und die
Teilschuldverschreibungen sind. Die Emittentin hat nur jene Risiken angeführt, die ihr bekannt
sind und die sie als wesentlich betrachtet. Die Risiken sind genauer unter der Rubrik "Risk
Factors" beschrieben (ab Seite 22). Es handelt sich dabei insbesondere um die folgenden
Risiken:
Risiken in Bezug auf die Emittentin und ihrer Geschäftstätigkeit:
Marktrisiken und generelle Geschäftsrisiken
-
Die Emittentin ist in allen Märkten, in denen sie tätig ist, Wettbewerbsrisiken
ausgesetzt
-
Die Emittentin ist den Risiken der petrochemischen Industrie ausgesetzt (zB der
Zyklizität)
-
Die Emittentin ist Marktrisiken in Verbindung mit ihrer Abhängigkeit von Rohstoffen
ausgesetzt (Rohstoffrisiko)
-
Die Emittentin ist von der Nachfrage der plastik- und melaminverarbeitenden
Industrie und vom Agrarsektor abhängig
-
Die Emittentin ist vielleicht nicht dazu im Stande, ihre geschäftliche Strategie
weiterzuführen
-
Die Emittentin ist dem Risiko, Schlüsselarbeitskräfte zu verlieren, ausgesetzt
-
Die Emittentin ist dem Ausfallsrisiko von Handelsforderungen ausgesetzt
-
Die Emittentin ist dem Risiko nachteiliger Entwicklungen ihres wirtschaftlichen und
politischen Umfelds ausgesetzt
-
Die Emittentin ist dem Risiko höherer Gewalt und von Sabotageakten ausgesetzt
-
Die Emittentin ist Umweltrisiken ausgesetzt
-
Die Emittentin ist Risiken in Verbindung mit Umwelt- und Sicherheitsbestimmungen
ausgesetzt, wobei die Kosten zur Einhaltung und Sanierung die Prognosen,
Geschäftslage und/oder Geschäftsergebnisse der Emittentin nachteilig beeinflussen
können
-
Die Emittentin ist den Risiken von Sachschäden ausgesetzt
-
Die Emittentin ist Risiken in Verbindung mit Produkthaftung ausgesetzt
-
Die Emittentin ist dem Risiko
Rahmenbedingungen ausgesetzt
nachteiliger
Entwicklungen
der
rechtlichen
19
-
Der Emittentin können operative und/oder technologische Probleme widerfahren,
welche die täglichen Aktivitäten oder den Fortschritt von laufenden und geplanten
Projekten verhindern oder verzögern können
-
Die Emittentin ist den Risiken in Verbindung mit Rechtsstreitigkeiten und
Gerichtsverfahren ausgesetzt
Risiken im Hinblick auf Geschäftspartner
-
Die Emittentin ist in Verbindung mit ihrer Abhängigkeit von Rohstoffen in Bezug auf
ihre Geschäftpartner Risiken ausgesetzt
-
Die Emittentin ist Risiken in Verbindung mit ihren Subunternehmern und
Vertragspartnern ausgesetzt
-
Die Emittentin ist Risiken in Verbindung mit ihrer Abhängigkeit von ihren Aktionären
und Joint Venture Partnern ausgesetzt
-
Die Emittentin ist einem Liquiditätsrisiko ausgesetzt
-
Garantien der Emittentin zu Gunsten von ihren Tochtergesellschaften
Finanzielle Risiken
-
Die Emittentin ist Risiken in Verbindung mit finanziellen
Vereinbarungen unter bestimmten Kreditfazilitäten ausgesetzt
-
Die Emittentin ist einem Währungsrisiko ausgesetzt
-
Die Emittentin ist Risiken der Zinsänderung ausgesetzt
oder
anderen
Risiken in Bezug auf die Teilschuldverschreibungen
-
Es
besteht
das
Risiko,
dass
die
Emittentin
Zahlungen
Teilschuldverschreibungen teilweise oder zur Gänze nicht leisten kann
auf
die
-
Die Anleihegläubiger sind dem Risiko ausgesetzt, dass sich der Wert der
Teilschuldverschreibungen als Ergebnis einer Änderung des Kreditaufschlages der
Emittentin ändert
-
Anleihegläubiger sind im Falle einer frühzeitigen Rückzahlung und im Falle einer
Wiederanlage Risiken ausgesetzt
-
Die Emittentin ist berechtigt, weitere Verbindlichkeiten einzugehen, die im gleichen
Rang wie die Teilschuldverschreibungen stehen
-
Fix verzinste Wertpapiere sind bestimmten Marktrisiken ausgesetzt
-
Es besteht ein Inflationsrisiko
-
Die Teilschuldverschreibungen sind einem Liquiditätsrisiko ausgesetzt
-
Der Marktwert der Teilschuldverschreibungen hängt von einer Vielzahl von Faktoren
ab und kann fallen
20
-
Es besteht das Risiko, dass der Handel mit den Teilschuldverschreibungen
ausgesetzt, unterbrochen oder eingestellt wird
-
Wird ein Darlehen oder Kredit zur Finanzierung des Kaufs der
Teilschuldverschreibungen verwendet, kann dies das Risiko eines Verlustes
signifikant erhöhen
-
Nebenkosten
in
Verbindung
mit
dem
Kauf
und
Verkauf
können
das
Gewinnpotential
Teilschuldverschreibungen signifikant oder vollständig vermindern
-
Anleihegläubiger sind vom Funktionieren des jeweiligen Clearingsystems abhängig
-
Die steuerlichen Auswirken auf ein Investment in die Teilschuldverschreibungen
sollten sorgsam berücksichtigt werden
-
Veränderungen des anwendbaren Rechts oder Regelungen oder behördlicher
Ordnungspolitik können nachteilige Auswirkungen auf die Emittentin, die
Teilschuldverschreibungen und die Anleihegläubiger haben
von
der
AUSGEWÄHLTE FINANZINFORMATIONEN DER EMITTENTIN
Die folgenden Finanzinformationen wurden den geprüften Konzernabschlüssen der Emittentin
zum 31 Dezember 2008 und 31 Dezember 2009 entnommen:
Kennzahlen in EUR Millionen
(gerundet)
Umsatzerlös
Jahresüberschuss
EBITDA
Verschuldungsgrad
Gesamtvermögen
Geschäftsjahr 2009
Geschäftsjahr 2008
4.714
6.697
38
239
260
426
43%
47%
4.816
4.828
Quelle: Geprüfte Konzernabschlüsse der Emittentin zum 31 Dezember 2008 und 31 Dezember 2009
21
Risk Factors
Prospective investors should consider carefully the risks set forth below and the other
information contained in the Prospectus, any supplements thereto and any documents
incorporated by reference. The following description of risk factors is limited to the most
essential risk factors which in the Issuer's current view could have a material adverse effect
on the Issuers' businesses, operations, financial condition or prospects which, in turn, could
have a material adverse effect on the ability of the Issuer to fulfil its obligations towards the
investors with respect to the Bonds. In addition, each of the risks highlighted below could
adversely affect the market value and trading price of the Bonds or the rights of investors
under the Bonds and, as a result, investors could lose some or all of their investments in the
Bonds. Prospective investors should therefore consider two main categories of risk: (i) risks
relating to the Issuer, and (ii) risks relating to the Bonds.
Prospective investors should note that the risks described below are not the only risks faced
by the Issuer or associated with the Bonds. The Issuer has described only those risks that it
considers to be material and of which it is aware. There may be additional risks that the Issuer
currently considers not to be material or of which it is not currently aware, and any of these
risks could have the effects set forth above. Moreover, prospective investors should be aware
that the events described in the risk factors may occur simultaneously, which could compound
their negative effects. If one or several of the risk factors below were to materialise, this might
have considerable adverse effects on the profit, business and financial position of the Issuer
and the profit potential of the Bonds.
Prior to deciding whether to invest in any Bonds issued under this Prospectus, a prospective
investor should conduct its own thorough analysis (including its own accounting, legal and tax
analysis) since any evaluation of the suitability for an investor of an investment in Bonds
issued under this Prospectus depends upon the prospective investor's particular financial and
other circumstances, as well as on the terms of the Bonds. If it does not have experience in
financial, business and investment matters sufficient to permit it to make such a
determination, the investor should consult with its financial adviser prior to making a decision
with respect to the suitability of any investment in the Bonds.
Words and expressions defined in "Terms and Conditions of the Bonds" shall have the same
meanings in this section. If not stated otherwise in the context of the risk factors set out
below, all references to the Issuer made hereinafter also include other companies of the
Borealis Group and the Borealis Group as a whole.
RISKS REGARDING THE ISSUER AND ITS BUSINESS ACTIVITIES
Markets and general business risks
The Issuer is subject to competition in all markets where it is active
The Issuer operates in a variety of local and international markets, with many factors affecting
the competitive environment which the Issuer faces in these markets. These factors include
the number of competitors operating in a specific market, the pricing policies of such
competitors, their market penetration, the pre-existing relationships with customers or
customers' prior experience with specific contractors, the total production capacity serving the
market, up-to-date technology in terms of production methods and equipment, market entry
barriers, and the proximity of natural resources, as well as general economic conditions and
demand within the market. Each of these factors or a combination thereof has a bearing on
the competitive environment in the markets in which the Borealis Group operates and could
have a material adverse impact on the demand for its products and services and on its market
share.
22
The Issuer is subject to risks in the petrochemical industry, such as its cyclicality
The Issuer is subject to special risks associated with the petrochemical industry. For example.
prices of petrochemical products have been cyclical as a result of shifts in European and
worldwide production capacity and demand patterns. The petrochemical industry historically
has experienced alternating periods of tight supply, causing prices and margins to increase,
followed by periods of substantial additions to capacity, resulting in excess supply and
declining prices and margins. This could have a material adverse effect on the Issuer's
business, results of operations and financial condition.
The Issuer is subject to market risks in connection with its dependency on the supply
market (commodity risk)
The Issuer depends on the supply market to secure raw materials. The cost of such materials
as well as any increases of the costs thereof can usually be passed on to the customers.
However, should the Issuer for any reason not be in a position to pass such costs on to
customers, the Issuer may be forced to bear these increased costs and this could have a
material adverse effect on the Issuer's business, results of operations and financial condition.
The Issuer depends on demand from plastic and melamine processing industries and
from agriculture
The products of the Issuer are sold to customers of numerous industries which use the
Issuer's products to manufacture their products, as well as to agriculture. The Issuer is
therefore dependent on the demand for products by its customers. The customers of the
Issuer could cease or decrease their production for a number of reasons (e.g. because of
lower demand for their products), or the customers of the Issuer could substitute the products
of the Issuer with materials other than plastic. All this could result in lower demand for the
Issuer's products, which could result in a material adverse effect on the Issuer's business,
results of operations and financial condition.
The Issuer may not be able to continue its business strategy
The Issuer bases its business model and competitive advantage to a substantial extent on the
continuing innovation of its products. Should the Issuer or the members of the Borealis Group
not be able to continue their business strategy, or should competitors invent better or more
cost effective products, or should the Issuer fail to implement (or timely implement) its
technological innovations, this could have a material adverse effect on the Issuer's business,
results of operations and financial condition.
The Issuer is subject to the risk of loss of key personnel
As is the case with most enterprises using advanced technology and R&D, a key factor in the
successful economic development of the Issuer is the technical know how as well as market
knowledge of its management and key personnel. The loss of management personnel or key
personnel could have a material adverse effect on the Issuer's business, results of operations
and financial condition. This negative influence could only be compensated if within
appropriate time the Issuer could hire under equivalent conditions equally qualified key
personnel.
The Issuer may be exposed to trade receivables credit risk
The Issuer is subject to trade receivables credit risk as the financial situation of its customers
23
might deteriorate and could prevent them from paying the amounts owed to the Issuer on the
due date. This could materially negatively impact the financial situation of the company
There is a risk of adversely changing economic and political environment
The economic and political environment in the countries where the Issuer is active or has
operations as well as the development of the world economy have a fundamental influence on
the demand for the services and products developed and offered by the Issuer.
The economic and political environment (e.g. unemployment, inflation, inclination to invest,
and economic growth) in markets in which the Issuer operates as well as the development of
the world economy have a fundamental influence on the demand for the services and
products developed and offered by the Issuer.
Economic downturns may lead to recessions in the Issuer's industry, either in individual
markets or globally. The Borealis Group may thus be affected significantly by global
downturns or downturns in one or more of its significant markets.
The Issuer is subject to force majeure risks or the risk of acts of sabotage
Events of force majeure (including technical breakdowns, fire, earthquakes or other natural
disasters, as well as wars, conflicts, civil unrest etc) or acts of sabotage may have a material
adverse effect on the Issuer's capability to operate its business or fulfil its obligations. This
may have a material adverse effect on the Issuer's business, results of operations and
financial condition.
The Issuer is exposed to environmental risks
Given the range and complexity of the daily operations undertaken by the Issuer, the potential
environmental risks faced by the Issuer cover a wide spectrum. These risks include major
process safety incidents, failure to comply with approved policies, effects of natural disasters
and pandemics, and exposure to general operational hazards. The consequences of such risk
events can be injuries, loss of life, environmental harm and disruption to business activities
and can have an adverse impact on the Issuers' business, prospects, financial condition
and/or results of operations.
The Issuer is subject to risks associated with environmental and health and safety
regulations which result in costs relating to compliance and remediation that may
adversely affect its business, prospects and/or results of operations
The Issuer's activities are subject to an increasing number of stringent environmental
protection laws and health and safety regulations in markets in which the Issuer operates.
Therewith associated increasing costs (as far as the Issuer is not able to pass these on to the
customers), may have a material adverse effect on the Issuer's business, results of
operations and financial condition.
The Issuer is subject to the risk of property damage
The chemical business involves significant hazards. Borealis' operations are subject to risks
generally relating to the petrochemical business that can result in personal injuries, loss of life
and property and environmental damage. In certain circumstances Borealis' insurance may
not cover or be adequate to cover the consequences of such events, or insurance coverage
may not be available. Moreover, there can be no assurance that Borealis will be able to
24
maintain adequate insurance in the future at rates that it considers reasonable. The
occurrence of any event that is not fully covered by insurance could have a material adverse
effect on Borealis' business, prospects, financial condition and/or results of operations.
The Issuer is subject to risks related to product liability
The products of the Issuer are in many cases used by other manufacturers for the production
of their goods. If the products of the Issuer are defective or not in line with the required
specifications, the goods produced by the Issuer's customers could be defective or otherwise
negatively affected, which could expose the Issuer to liability vis-à-vis its customers and endconsumers. Such claims resulting from the delivery by the Issuer of defect products or
products that are not compliant with agreed specifications or norms could materially
negatively impact the Issuer’s business, results of operations and financial condition.
The Issuer is subject to the risk of adversely changing legislative environments in all
markets where it is active (regulatory risk)
The legislation as well as the judicial and administrative practice in the jurisdictions where the
issuer is active might change adversely in respect of the issuer. The activities of the Issuer
are subject to national and international laws and regulations. Both the legislation and judicial
and administrative practices in these jurisdictions are subject to change in ways that could
adversely affect the Issuer.
The Issuer may experience operational and/or technological problems which may delay
or hinder daily activities or progress of ongoing and planned projects
The Issuer may experience operational and/or technological problems, both of its own and of
its contractual partners, which may delay or hinder the progress of ongoing and/or planned
projects and investments and could have an adverse impact on the Issuers' business,
prospects, financial condition and/or results of operations.
The Issuer is exposed to risks relating to disputes and litigation
The Issuer is subject to numerous risks relating to legal and regulatory proceedings in which a
company of the Borealis Group is currently a party or that could develop in the future. The
Issuer cannot guarantee that the ultimate outcome of such legal proceedings and any
consequential legal proceedings thereafter will not have a material adverse effect on the
Issuer's business, results of operations and financial condition.
Counterparty risks
The Issuer is subject to counterparty risks in connection with its dependency on the
supply market
The Issuer depends on the supply market to secure raw materials such as naphtha, propane,
butane, ethylene, propylene and natural gas. Should logistical or financial problems prevent
suppliers to deliver these raw materials, this could have a material adverse effect on the
Issuer’s business, results of operations and financial condition.
The Issuer is subject to risks in connection with its exposure to subcontractors and
contractual partners
25
The Issuer often needs to cooperate with subcontractors and contractual partners. The Issuer
is subject to the risk that some subcontractors and/or contractual partners render their
services inadequately or not in a timely manner. Such subcontractors and/or contractual
partners may become insolvent during their engagement. In that case the Issuer could lose
customers or the further growth of the Issuer could be impaired. This could have a material
adverse effect on the Issuer's business, results of operations and financial condition.
The Issuer is subject to risks in connection with its dependency on its shareholders
and joint venture partners
Some shareholders and joint venture partners supply the Issuer with chemicals and materials
necessary for the Issuer's production. In case these shareholders and joint venture partners
cease to supply the Issuer, the Issuer may be forced to look for supply possibilities elsewhere.
There can be no assurance that in such circumstances the Issuer will be able to cover its
needs at all, or at the same or at adequate costs. This could have a material adverse effect
on the Issuer's business, results of operations and financial condition.
The Issuer is exposed to liquidity risks
The Issuer is, as most business enterprises, exposed to the risk that it will not be able to meet
its financial obligations as they fall due. This could have a material adverse effect on the
assets, financial position and earnings of the Issuer.
The Issuer is subject to risks in connection with guarantees it has issued
The Issuer has in the past issued guarantees for related companies. Should these companies
not fulfil their obligations, the obligations under the guarantees would have to be fulfilled by
the Issuer. This could have a material adverse effect on the Issuer's business and financial
condition.
Financial risks
The Issuer is subject to risks in connection with financial and other covenants under
certain credit facilities
The Borealis Group is party to several credit facility agreements that restrict its ability to
engage in certain activities, including its ability (subject to certain exceptions) to incur liens or
encumbrances, incur additional indebtedness or guarantee obligations in excess of certain
thresholds, dispose of a material portion of assets, effect material acquisitions, engage in a
merger with a third party or pledge accounts receivable. If the Borealis Group fails to meet the
terms of these covenants or of any other restrictions contained in the credit facility
agreements, an event of default could occur, which could result in the acceleration of some or
all of the Borealis Group's outstanding indebtedness causing it to become immediately due
and payable. If such acceleration occurs, the Borealis Group may not be able to repay such
indebtedness on a timely basis which could have a material adverse effect on its business
operations and, in the worst case, lead to its insolvency.
The Issuer is subject to currency risk
The Issuer finances its equipment, investments as well as expansions partly in currencies
other than EUR, which is in line with the Issuer's internationally orientated business
operations. Usually, F/X rates change in time, which could have a material adverse effect on
the Issuer's business, results of operations and financial condition.
26
The Issuer is subject to interest rate risks
The expansion of the Issuer's business activities in the ordinary course of its business
requires additional debt financing of assets, resources, investments and acquisitions. The
composition of the debt financing structure varies significantly during the course of a business
year of the Issuer. An increase of the interest rate level may therefore have a material
adverse effect on the Issuer's business, results of operations and financial condition.
RISKS REGARDING THE BONDS
Each investor should determine whether an investment in the Bonds is appropriate to its
particular circumstances. An investment in the Bonds requires a thorough understanding of
the nature of the relevant transaction. Investors should be experienced with respect to an
investment and be aware of the related risks.
An investment in the Bonds is only suitable for investors who:

have the requisite knowledge and experience in financial and business matters to
evaluate the merits and risks of an investment in the Bonds and the information
contained or incorporated by reference in the Prospectus or any applicable
supplement;

have access to, and knowledge of, appropriate analytical tools to evaluate such
merits and risks in the context of the investor's particular financial situation and to
evaluate the impact the Bonds will have on their overall investment portfolio;

understand thoroughly the terms of the Bonds;

are capable of bearing the economic risk of an investment in the Bonds until their
maturity; and

recognise that it may not be possible to dispose of the Bonds for a substantial period
of time, if at all before maturity.
The Bonds may be subject in particular to the following risks:
There is a risk of partial or total failure of the Issuer to make interest and/or redemption
payments that the Issuer is obliged to make under the Bonds
Investors are subject to the risk of a partial or total failure of the Issuer to make interest and/or
redemption payments that the Issuer is obliged to make under the Bonds. The worse the
creditworthiness of the Issuer, the higher the risk of loss (see also "Risks regarding the Issuer
and its business activities" above). A materialisation of the credit risk may result in partial or
total failure of the Issuer to make interest and/or redemption payments on the Bonds.
Investors in the Bonds assume the risk that the credit spread of the Issuer widens and
that as a consequence the price of the Bonds falls
A credit spread is the margin payable by the Issuer to the holder of a Bond as a premium for
the assumed credit risk. Credit spreads are offered and sold as premiums on current risk-free
interest rates or as discounts on the price. Factors influencing the credit spread include,
among other things, the creditworthiness of the Issuer, probability of default, recovery rate,
remaining term to maturity of the Bonds etc. The liquidity situation, the general level of
interest rates, overall economic developments, and the currency, in which the relevant
obligation is denominated may also have a positive or negative effect. Investors are exposed
27
to the risk that the credit spread of the Issuer widens resulting in a decrease in the price of the
Bonds.
The investors face a risk in case of an early redemption and in case of reinvestment
In the event that the Bonds are redeemed or being sold, an investor may be subject to the risk
that he may not find any reinvestment opportunities at better or at least the same conditions.
The same applies to the reinvestment of coupon payments derived from the investment. This
could result in a material adverse effect for investors.
The Issuer may incur additional indebtedness ranking pari passu with the Bonds
The Issuer has not entered into any restrictive covenants in connection with the issuance of
the Bonds regarding its respective ability to incur additional indebtedness ranking pari passu
with the obligations under or in connection with the Bonds. Incurring any additional
indebtedness may increase the likelihood of a deferral of coupon payments under the Bonds
and/or may reduce the amount recoverable by Bondholders in the event of insolvency or
liquidation of the Issuer.
Fixed rate securities are exposed to specific market risks
A holder of a Bond with a fixed interest rate is exposed to the risk that the price of such Bond
falls as a result of changes in the market interest rate. While the nominal interest rate of a
Bond with a fixed coupon is fixed during the life of such Bond, the current interest rate on the
capital market (market interest rate) typically changes continuously. As the market interest
rate changes, the price of such Bond changes in the opposite direction. If the market interest
rate increases, the price of such Bond typically falls, until the yield of such Bond is
approximately equal to the market interest rate. If the market interest rate falls, the price of a
Bond with a fixed interest rate typically increases, until the yield of such Bond is
approximately equal to the market interest rate. Bondholders should be aware that
movements of the market interest rate can adversely affect the price of the Bonds and can
lead to losses for the Bondholders if they sell Bonds.
There is a risk of inflation
The inflation risk is the risk of future money depreciation. The real yield from an investment is
reduced by inflation. The lower the rate of inflation, the higher the real yield on the Bonds. If
the inflation rate is equal to or higher than the nominal yield, the real yield is zero or even
negative.
There is a risk that an active trading market for the Bonds may not develop
The Issuer has applied for admission to listing of the Bonds on the Second Regulated Market
(Geregelter Freiverkehr) of the Vienna Stock Exchange. Although the Issuer expects to be
granted admission to listing for the Bonds, the Issuer cannot guarantee that such admission
will indeed be granted. It cannot be guaranteed that the stock exchange prices at which the
Bonds will be quoted will not be below par. Negative consequences on the stock exchange
price of the Bonds may be caused in particular by an unsatisfactory business development of
the Issuer, a worsened financial condition of the Issuer, a deterioration of the industry the
Issuer is active in or the economy as a whole, an increase of interest rates as well as a
general decline of the securities markets. The securities markets have seen material stock
exchange price and trading volume fluctuations during the past years. Such fluctuations could
result in a material adverse effect for investors.
28
There is a risk that the markets on which the Bonds are traded, could be illiquid
Although the Issuer has applied for admission to listing of the Bonds on the Second
Regulated Market (Geregelter Freiverkehr) of the Vienna Stock Exchange, it cannot be
guaranteed that active trading in the Bonds will develop and that the market for the Bonds will
be liquid. Illiquid markets can result in a situation where investors may be forced to sell their
securities below a fair market price, the price they have bought such securities or a price
which is appropriate for such securities. This could result in a material adverse effect for
investors.
There is a risk that trading in the Bonds will be suspended, interrupted or terminated
The listing of the Bonds may be suspended or interrupted by the respective stock exchange
or a competent regulatory authority upon the occurrence of a number of reasons, including
violation of price limits, breach of statutory provisions, occurrence of operational problems of
the stock exchange or generally if deemed required in order to secure a functioning market or
to safeguard the interests of investors. Furthermore, trading in the Bonds may be terminated,
either upon decision of the stock exchange, a regulatory authority or upon application by the
Issuer
Investors should note that the Issuer has no influence on trading suspension or interruptions
(other than where trading in the Bonds is terminated upon the Issuer's decision) and that
investors in any event must bear the risks connected therewith. In particular, investors may
not be able to sell their Bonds where trading is suspended, interrupted or terminated, and the
stock exchange quotations of such Bonds may not adequately reflect the price of such Bonds.
Finally, even if trading in the Bonds is suspended, interrupted or terminated, investors should
note that such measures may neither be sufficient nor adequate nor in time to prevent price
disruptions or to safeguard the investors' interests; for example, where trading in the Bonds is
suspended after price-sensitive information relating to the Bonds has been published, the
price of the Bonds may already have been adversely affected. All these risks would, if they
materialise, have a material adverse effect on the investors.
If a loan or credit is used to finance the acquisition of the Bonds, the loan may
significantly increase the risk of a loss
If a loan is used to finance the acquisition of the Bonds by an investor and the Bonds
subsequently go into default, or if the trading price diminishes significantly, the investor may
not only have to face a potential loss on its investment, but it will also have to repay the loan
and pay interest thereon. A loan may significantly increase the risk of a loss. Investors should
not assume that they will be able to repay the loan or pay interest thereon from the profits of a
transaction. Instead, investors should assess their financial situation prior to an investment,
as to whether they are able to pay interest on the loan, repay the loan on demand, and that
they may suffer losses instead of realising gains.
There is a risk that incidental costs related in particular to the purchase and sale of the
Bonds may significantly or completely reduce the profit potential of the Bonds
When Bonds are purchased or sold, several types of incidental costs (including transaction
fees and commissions) are incurred in addition to the purchase or sale price of the security.
These incidental costs may significantly reduce or eliminate any profit from holding the Bonds.
Credit institutions as a rule charge commissions which are either fixed minimum commissions
or pro-rata commissions, depending on the order value. To the extent that additional domestic or foreign - parties are involved in the execution of an order, including but not limited
to domestic dealers or brokers in foreign markets, investors may also be charged for the
brokerage fees, commissions and other fees and expenses of such parties (third party costs).
29
In addition to such costs directly related to the purchase of securities (direct costs), investors
must also take into account any follow-up costs (such as custody fees). Investors should
inform themselves about any additional costs incurred in connection with the purchase,
custody or sale of the Bonds before investing in the Bonds.
Investors have to rely on the functionality of the relevant clearing system
The Bonds are purchased and sold through different clearing systems, such as Clearstream
Banking AG, Clearstream Banking S.A., Euroclear Bank S.A./N.V. or Oesterreichische
Kontrollbank Aktiengesellschaft. The Issuer does not assume any responsibility as to whether
the Bonds are actually transferred to the securities portfolio of the relevant investor. Investors
have to rely on the functionality of the relevant clearing system.
The tax impact of an investment in the Bonds should be carefully considered
Interest payments on Bonds, or profits realised by an investor upon the sale or repayment of
Bonds, may be subject to taxation in its home jurisdiction or in other jurisdictions in which it is
required to pay taxes. The tax impact on investors generally in Austria is described under
"Taxation"; however, the tax impact on an individual investor may differ from the situation
described for investors generally. Prospective investors, therefore, should contact their own
tax advisors for advice on the tax impact of an investment in the Bonds. Furthermore, the
applicable tax regime may change to the disadvantage of the investors in the future.
Changes in applicable laws, regulations or regulatory policies may have an adverse
effect on the Issuer, the Bonds and the investors
The terms and conditions of the Bonds will be governed by Austrian law in effect as at the
date of this Prospectus. No assurance can be given as to the impact of any possible judicial
decision or change to Austrian law (or law applicable in Austria), or administrative practice
after the date of this Prospectus.
No Advice
This Prospectus does not alter each individual investor's need to seek the advice of a bank, a
financial, investment or tax adviser and/or a lawyer.
30
Terms and conditions of the Bonds
These terms and conditions of the bonds
(the "Terms and Conditions") are written
in the German language and contain an
English translation. The German text shall
be the legally binding version. The English
translation is provided for convenience
only.
Diese
Anleihebedingungen
(die
"Anleihebedingungen") sind in deutscher
Sprache
abgefasst
und
mit
einer
Übersetzung in die englische Sprache
versehen. Der deutsche Wortlaut ist
rechtsverbindlich.
Die
englische
Übersetzung dient nur zur Information.
Terms and Conditions
of the
up to EUR 200,000,000
Senior Fixed Rate
Bonds
of
Borealis AG
Anleihebedingungen
der
bis zu EUR 200.000.000
nicht-nachrangigen
fixverzinslichen
der
Borealis AG
§1
Principal Amount and
Denomination, Form, Transferability
§1
Nennbetrag und Stückelung,
Verbriefung, Übertragbarkeit
(1) Principal Amount and Denomination.
This issue of a senior fixed rate bond
(the "Bond") by Borealis AG,
registered in the Austrian Companies
Register under FN 269858 a, with its
seat in Vienna and the business
address in 1220 Vienna, Austria,
Wagramerstraße 17-19 (the "Issuer")
in the aggregate principal amount of
up to EUR 200,000,000 (in words: up
to Euro two hundred million) is divided
into up to 200,000 bonds payable to
the bearer and ranking pari passu
among themselves, with a principal
amount of EUR 1,000 each (the
"Bonds"; this term includes any further
Bonds issued pursuant to § 11 that
form a single series with the Bonds).
(1) Nennbetrag und Stückelung. Diese
Emission
einer
fixverzinslichen
Schuldverschreibung (die "Anleihe")
der Borealis AG, Firmenbuchnummer
FN 269858 a, mit Sitz in Wien und der
Geschäftsanschrift in 1220 Wien,
Österreich, Wagramerstraße 17-19
(die
"Emittentin")
im
Gesamtnennbetrag
von
bis
zu
EUR 200.000.000 (in Worten: bis zu
Euro zweihundert Millionen) ist
eingeteilt in (bis zu) 200.000 an den
Inhaber zahlbare und untereinander
gleichrangige
Teilschuldverschreibungen mit einem
Nennbetrag von jeweils EUR 1.000
(die
"Teilschuldverschreibungen";
dieser Begriff umfasst sämtliche
weiteren Teilschuldverschreibungen,
die gemäß § 11 begeben werden und
eine einheitliche Serie mit den
Teilschuldverschreibungen bilden).
(2) Global Bond. The Bonds are
represented by a global changeable
security (the "Global Bond") without
interest coupons. The Global Bond
shall
be
signed
manually
by
authorised signatories of the Issuer
and shall be authenticated by or on
(2) Sammelurkunde.
Die
Teilschuldverschreibungen sind durch
eine veränderbare Sammelurkunde
(die "Sammelurkunde") verbrieft. Die
Sammelurkunde
trägt
die
eigenhändigen
Unterschriften
ordnungsgemäß
bevollmächtigter
31
behalf of the Paying Agent. Claims for
the delivery of definitive Bonds and
interest coupons shall be excluded.
Vertreter der Emittentin und ist von der
Zahlstelle oder in deren Namen mit
einer Kontrollunterschrift versehen.
Der
Anspruch
auf
Ausfolgung
effektiver
Stücke
der
und
Zinsscheine ist ausgeschlossen.
(3) Central Securities Depositary. The
Global Bond will be deposited with
Oesterreichische
Kontrollbank
Aktiengesellschaft as central securities
depositary (the "Central Securities
Depositary") until all obligations of the
Issuer under the Bonds have been
satisfied.
(3) Wertpapiersammelbank.
Die
Sammelurkunde
wird
bei
der
Oesterreichischen
Kontrollbank
Aktiengesellschaft
als
Wertpapiersammelbank
(die
"Wertpapiersammelbank") verwahrt,
bis sämtliche Verbindlichkeiten der
Emittentin
aus
den
Teilschuldverschreibungen erfüllt sind.
(4) Transferability. The bondholders (the
"Bondholders") will receive coownership participations or rights in
the Global Bond that are transferable
in accordance with the general
business conditions of the Central
Securities Depositary and outside of
the Republic of Austria in accordance
with the provisions of Clearstream
Banking,
société
anonyme,
Luxemburg ("CBL") and/or Euroclear
Bank S.A./N.V., Brussels, Belgium
("Euroclear") (CBL and Euroclear
together the "Clearing System").
(4) Übertragbarkeit.
Den
Anleihegläubigern
(die
"Anleihegläubiger")
stehen
Miteigentumsanteile oder -rechte an
der Sammelurkunde zu, die gemäß
den
allgemeinen
Geschäftsbedingungen
der
Wertpapiersammelbank
und
außerhalb der Republik Österreich
gemäß
den
Vorschriften
der
Clearstream
Banking,
société
anonyme,
Luxemburg
("CBL")
und/oder Euroclear Bank S.A./N.V.,
Brüssel, Belgien ("Euroclear") (CBL
und
Euroclear
zusammen
das
"Clearingsystem") übertragen werden
können.
(5) ISIN. The International Securities
Identification Number (ISIN) shall be
AT0000A0H0V3.
(5) ISIN.
Die
Wertpapierkennummer
("International Securities Identification
Number"
oder
"ISIN")
lautet
AT0000A0H0V3.
§2
Status of the Bonds
§2
Status der
The
Bonds
constitute
direct,
unconditional, unsubordinated and
(subject to the provisions of § 3)
unsecured obligations of the Issuer
and rank pari passu without any
preference among themselves and at
least pari passu with all other
unsubordinated
and
unsecured
obligations of the Issuer, present or
future, save for obligations which are
preferred by applicable mandatory
Die
begründen unmittelbare, unbedingte,
nicht nachrangige und (vorbehaltlich
der Bestimmungen des § 3) nicht
besicherte
Verbindlichkeiten
der
Emittentin und stehen im gleichen
Rang untereinander und mindestens
im gleichen Rang mit allen anderen
gegenwärtigen und zukünftigen nicht
nachrangigen und nicht besicherten
Verbindlichkeiten der Emittentin, mit
32
law.
Ausnahme von Verbindlichkeiten, die
nach geltendem zwingendem Recht
vorrangig sind.
§3
Negative Pledge
§3
Negativerklärung
(1) Negative Pledge. During the term of
the Bond, the Issuer undertakes, but
no longer than until all amounts in
respect of interest and principal for the
Bonds have been provided to the
Paying Agent that has been appointed
pursuant to these Terms and
Conditions:
(1) Negativerklärung.
Die
Emittentin
verpflichtet sich für die Laufzeit der
gegenständlichen Anleihe, längstens
jedoch bis zu dem Zeitpunkt, an dem
alle Beträge an Kapital und Zinsen für
die Teilschuldverschreibungen der
gemäß diesen Anleihebedingungen
bestellten Zahlstelle vollständig zur
Verfügung gestellt worden sind:
(a) for other Capital Market Indebtedness
as well as for guarantee obligations or
liabilities for other Capital Market
Indebtedness
(a) für
andere
sowie
für Verbindlichkeiten unter Garantien
oder
Haftungen
für
andere
(i)
not to create any security, and
(i)
keine Sicherheiten zu bestellen,
und
(ii)
to cause third parties to not create
any Security, or assume any
Liability, to secure Capital Market
Indebtedness of the Issuer or its
Subsidiaries
or
guarantee
obligations or liabilities for other
Capital Market Indebtedness of
the Issuer or its Subsidiaries,
(ii)
Dritte
zu
veranlassen,
zur
Besicherung
der
von
der
Emittentin
oder
ihren
aufgenommenen
Kapitalmarktverbindlichkeiten und
Verbindlichkeiten der Emittentin
oder ihrer Tochtergesellschaften
unter Garantien oder Haftungen
für Kapitalmarktverbindlichkeiten
keine Sicherheiten zu bestellen
oder Haftungen zu übernehmen,
unless the Bondholders at the same
time and in the same rank participate
in such Security or Liability or in any
other security or liability, which has
been recognised as at least equal
security or liability, as the case may
be, by an internationally recognised
public accountant that is independent
from an existing auditor of the Issuer
or any of its subsidiaries; and
ohne jeweils sicherzustellen, dass die
Anleihegläubiger zur gleichen Zeit und
im gleichen Rang an solchen
Sicherheiten oder Haftungen oder an
anderen Sicherheiten oder Haftungen,
die von einem vom bestehenden
Abschlussprüfer der Emittentin oder
ihrer
Tochterunternehmen
unabhängigen,
international
anerkannten Wirtschaftsprüfer als
zumindest gleichwertige Sicherheit
oder Haftung anerkannt werden,
teilnehmen; und
(b) to procure that its Subsidiaries in
relation to other Capital Market
Indebtedness as well as to guarantee
(b) dafür Sorge zu tragen, dass ihre
für
andere
sowie
33
obligations or liabilities for
Capital Market Indebtedness
other
für Verbindlichkeiten unter Garantien
oder
Haftungen
für
andere
(i)
do not create any Security or
assume any Liability, and
(i)
keine Sicherheiten bestellen oder
Haftungen übernehmen, und
(ii)
cause third parties to not create
any Security, or assume any
Liability, to secure Capital Market
Indebtedness of the Issuer or its
Subsidiaries
or
guarantee
obligations or liabilities for other
Capital Market Indebtedness of
the Issuer or its Subsidiaries,
(ii)
Dritte
veranlassen,
zur
Besicherung
der
von
der
Emittentin
oder
ihren
aufgenommenen
Kapitalmarktverbindlichkeiten und
den
Verbindlichkeiten
der
Emittentin
oder
ihrer
unter
Garantien oder Haftungen für
keine Sicherheiten zu bestellen
oder Haftungen zu übernehmen,
unless the Bondholders at the same
time and in the same rank participate
in such Security or Liability or in any
other security or liability, which has
been recognised as at least equal
security or liability, as the case may
be, by an internationally recognised
public accountant that is independent
from an existing auditor of the Issuer
or any of its subsidiaries.
ohne
jeweils
unverzüglich
sicherzustellen,
dass
die
Anleihegläubiger zur gleichen Zeit und
im gleichen Rang an solchen
Sicherheiten oder Haftungen oder an
anderen Sicherheiten oder Haftungen,
die von einem vom bestehenden
Abschlussprüfer der Emittentin oder
ihrer
Tochterunternehmen
unabhängigen,
international
anerkannten Wirtschaftsprüfer als
zumindest gleichwertige Sicherheit
oder Haftung anerkannt werden,
teilnehmen.
"Capital Market Indebtedness" shall
mean any present or future obligation
to pay money (including obligations
under guarantees or other liability
arrangements) from bonds, notes or
other similar debt instruments, as well
as
loan
deeds
(Schuldscheindarlehen), regardless of
whether they are admitted to trading
on a stock exchange or a regulated
market, or whether they are included
in a multilateral trading facility.
"Kapitalmarktverbindlichkeiten" sind
gegenwärtige
oder
zukünftige
Verpflichtungen zur Leistung von
Geldern
(einschließlich
Verpflichtungen aus Garantien oder
anderen Haftungsvereinbarungen) aus
Anleihen, Schuldverschreibungen oder
anderen
ähnlichen
Schuldinstrumenten,
sowie
Schuldscheindarlehen,
unabhängig
davon,
ob
sie
an
einer
Wertpapierbörse oder an einem
geregelten
Markt
zum
Handel
zugelassen oder in ein multilaterales
Handelssystem einbezogen sind.
"Security"
means
mortgages,
pledges, retention rights or other
encumbrances and security rights over
the existing or future assets or income
"Sicherheiten"
sind
Hypotheken,
Pfandrechte, Zurückbehaltungsrechte
oder sonstige Belastungen und
Sicherungsrechte
an
den
34
of the Issuer.
gegenwärtigen
oder
zukünftigen
Vermögenswerten oder Einkünften der
Emittentin.
"Liabilities"
means
guarantees,
sureties and other assumptions of,
and accessions to, liability.
"Haftungen"
sind
Garantien,
Bürgschaften
und
sonstige
Haftungsübernahmen und -beitritte.
"Subsidiary" means in these terms
and conditions any corporation or
partnership, in which the Issuer,
directly or indirectly, holds more than
50 per cent. of the capital or the voting
rights or which are otherwise directly
or indirectly under the controlling
influence of the Issuer and/or its
Subsidiaries within the meaning of this
provision.
"Tochtergesellschaft"
im
Sinne
dieser Anleihebedingungen ist jede
Kapital- oder Personengesellschaft, an
der die Emittentin mittelbar oder
unmittelbar mehr als 50% des Kapitals
oder der stimmberechtigten Anteile
hält oder die sonst unmittelbar oder
mittelbar unter dem beherrschenden
Einfluss der Emittentin und/oder ihrer
Tochtergesellschaften im Sinne dieser
Bestimmung steht.
§4
Interest
§4
Verzinsung
(1) Interest Period. Each Bond shall bear
interest on its then outstanding
principal amount at a rate of [] per
cent. per annum as from (and
including) 30 April 2010 (the "Issue
Date"). Interest is payable annually in
arrear on 30 April of each year (each
an
"Interest
Payment
Date")
commencing on 30 April 2011.
(1) Zinsperiode. Der jeweils ausstehende
Nennbetrag
der
Teilschuldverschreibungen wird ab
und einschließlich dem 30.04.2010
(der "Ausgabetag") mit [] % jährlich
verzinst. Die Zinsen sind jährlich
nachträglich am 30.04 jeden Jahres
(jeweils
ein
"Zinszahlungstag"),
beginnend mit dem 30.04.2011,
zahlbar.
(2) Cessation of interest payments. The
Bonds shall cease to bear interest
from the end of the day which
precedes the day on which they are
due for redemption. If the Issuer fails
to redeem the Bonds when due, the
obligation to pay interest on the
outstanding principal amount shall
continue to accrue beyond the due
date until (but excluding) the date of
actual redemption of the Bonds.
(2) Ende des Zinslaufs. Der Zinslauf der
Teilschuldverschreibungen endet mit
Ablauf des Tages, der dem Tag
vorausgeht,
an
dem
sie
zur
Rückzahlung fällig werden. Sollte die
Emittentin
die
bei
Fälligkeit nicht einlösen, endet die
Verpflichtung zur Zahlung von Zinsen
auf den ausstehenden Nennbetrag
nicht am Fälligkeitstag, sondern erst
mit (jedoch ausschließlich) dem Tag
der tatsächlichen Rückzahlung der
Teilschuldverschreibungen.
(3) Calculation of interest. Where interest
is to be calculated in respect of a
period which is shorter than an
Interest Period (as defined below), the
interest will be calculated on the basis
of the actual number of days elapsed
(3) Zinsberechnung. Sind Zinsen im
Hinblick auf einen Zeitraum zu
berechnen, der kürzer als eine
Zinsperiode
(wie
nachstehend
definiert) ist, so werden sie auf der
Grundlage der tatsächlichen Anzahl
35
in the period from (and including) the
most recent Interest Payment Date
(or, if none, the Issue Date), divided by
the number of days in the Interest
Period in which the relevant period
falls (including the first such day but
excluding the last) ("actual/actual",
according to ICMA).
der im jeweiligen Zeitraum ab (und
einschließlich)
dem
unmittelbar
vorhergehenden
Zinszahlungstag
(oder, falls es einen solchen nicht gibt,
ab dem Ausgabetag) verstrichenen
Tage, dividiert durch die Anzahl der
Tage in der Zinsperiode, in die der
jeweilige Zeitraum fällt (einschließlich
des ersten solchen Tages, jedoch
ausschließlich des letzten), berechnet
("actual/actual",
gemäß
ICMARegelung).
"Interest Period" means the period
from the Issue Date (inclusive) up to
the first Interest Payment Date
(exclusive) and thereafter from any
Interest Payment Date (inclusive) up
to the next following Interest Payment
Date (exclusive).
"Zinsperiode"
bezeichnet
den
Zeitraum
ab
dem
Ausgabetag
(einschließlich)
bis
zum
ersten
Zinszahlungstag (ausschließlich) und
danach ab jedem Zinszahlungstag
(einschließlich)
bis
zum
nächstfolgenden
Zinszahlungstag
(ausschließlich).
§5
Maturity and Redemption
§5
Fälligkeit und Rückzahlung
(1) Maturity. The Bonds will be redeemed
at their principal amount on 30 April
2017 (the "Redemption Date") to the
extent they have not previously been
redeemed or purchased and cancelled
partially or fully.
(1) Fälligkeit.
Die
Teilschuldverschreibungen werden am
30.04.2017 (der "Fälligkeitstag") zum
Nennbetrag zurückgezahlt, soweit sie
nicht vorher ganz oder teilweise
zurückgezahlt oder gekauft und
entwertet worden sind.
(2) Issuer
Call
Right
and
Early
Redemption due to a Tax Event. If as
a result of a change of, or a
supplement to, the tax laws applicable
by or in the Republic of Austria or a
change in, or supplement to, their
official interpretation, the Issuer at the
time of the next following Interest
Payment Date would be required to
pay Additional Amounts as defined in
§ 7(1) and the Issuer can not avoid
such
obligation
by
measures
reasonable for the Issuer, the Issuer
will be entitled to redeem all (but not
parts of the) Bonds at par plus
accrued interest until the date of
redemption, if any.
(2) Kündigungsrecht der Emittentin und
vorzeitige Rückzahlung aus einem
Steuerereignis. Falls die Emittentin als
Folge einer Änderung oder Ergänzung
der steuerrechtlichen Vorschriften von
oder in der Republik Österreich oder
als Folge einer Änderung oder
Ergänzung der Anwendung oder der
offiziellen
Auslegung
dieser
Vorschriften
am
nächstfolgenden
Zinszahlungstag zur Zahlung von
zusätzlichen Beträgen (wie in § 7(1)
definiert) verpflichtet ist und die
Emittentin diese Verpflichtung nicht
durch ihr zumutbare Maßnahmen
vermeiden kann, ist die Emittentin
berechtigt,
die
Teilschuldverschreibungen insgesamt,
jedoch nicht teilweise, vorzeitig zu
kündigen und zum Nennwert zuzüglich
allfälliger bis zum für die Rückzahlung
festgesetzten
Tag
aufgelaufener
36
Zinsen zurückzuzahlen.
Such early redemption must however
not (i) occur with effect earlier than 90
days prior to the earliest date on which
the Issuer would be obliged to pay
such Additional Amounts, if at that
time a payment in respect of the
Bonds would be then due, or (ii) occur,
if at the time when the redemption is
effected, the obligation to pay or to
deduct or withhold Additional Amounts
ceases to be in force.
Eine solche vorzeitige Kündigung darf
allerdings nicht (i) mit Wirkung früher
als 90 Tage vor dem frühest
möglichen Termin erfolgen, an dem
die Emittentin verpflichtet wäre, solche
zusätzlichen Beträge zu zahlen, falls
eine
Zahlung
auf
die
Teilschuldverschreibungen dann fällig
sein würde, oder (ii) erfolgen, wenn zu
dem Zeitpunkt, zu dem die Kündigung
erfolgt, die Verpflichtung zur Zahlung
von zusätzlichen Beträgen oder zum
Einbehalt oder Abzug nicht mehr
wirksam ist.
Such early redemption shall be
notified by the Issuer with at least 30
days notice to the Paying Agent by
registered letter, provided that such
redemption shall be effective on the
date of delivery of the redemption
notice to the Paying Agent if the
redemption is made public to the
Bondholders pursuant to § 13. It shall
be irrevocable, shall state the date
fixed for the repayment and shall
contain a summary explanation setting
out the circumstances constituting the
Issuer's repayment right.
Eine solche vorzeitige Kündigung ist
durch die Emittentin mit einer
Kündigungsfrist von mindestens 30
Tagen gegenüber der Zahlstelle
mittels
eingeschriebenem
Brief
mitzuteilen,
wobei
eine
solche
Kündigung
zum
Zeitpunkt
des
Zugangs der Kündigung bei der
Zahlstelle wirksam wird, sofern die
Kündigung
gegenüber
den
Anleihegläubigern gemäß § 13
bekannt gemacht wird. Sie ist
unwiderruflich, muss den für die
Rückzahlung festgelegten Termin
nennen und eine zusammenfassende
Erklärung enthalten, welche die das
Rückzahlungsrecht der Emittentin
begründenden Umstände darlegt.
(3) Early Repayment. Except for the
provision contained above and in §
8(1), the Issuer shall not be entitled to
repay the Bonds prior to the
Redemption Date.
(3) Vorzeitige
Rückzahlung.
Mit
Ausnahme der obigen Bestimmungen
und des § 8(1) ist die Emittentin nicht
berechtigt,
die
Teilschuldverschreibungen vor dem
Fälligkeitstermin zurückzuzahlen.
§6
Payments
(1) Payment of Principal and Interest. The
Issuer undertakes to pay, as and when
due, principal and interest payable on
the Bonds in euro. Such payments
shall, subject to applicable fiscal and
other laws and regulations, be made
to the Paying Agent for on-payment to
the Clearing System or to its order for
credit to the respective account
holders. Payments to the Clearing
§6
Zahlungen
(1) Zahlung von Kapital und Zinsen. Die
Emittentin verpflichtet sich, Kapital und
Zinsen bei Fälligkeit in Euro zu
bezahlen.
Derartige
Zahlungen
erfolgen,
vorbehaltlich
geltender
steuerrechtlicher
und
sonstiger
gesetzlicher
Regelungen
und
Vorschriften, an die Zahlstelle zur
Weiterleitung an das Clearingsystem
oder an dessen Order zur Gutschrift
37
System or to its order shall release the
Issuer
from
its
corresponding
obligations under the Bonds.
für die jeweiligen Kontoinhaber. Die
Zahlung an das Clearingsystem oder
an dessen Order befreit die Emittentin
in Höhe der geleisteten Zahlung von
ihren
entsprechenden
Verbindlichkeiten
aus
den
(2) Due Date not a Business Day. If the
due date for any payment of principal
and/or interest is not a Business Day,
payment shall be made on the next
following Business Day; Bondholders
shall have no right to claim payment of
interest or other indemnity in respect
of such delay in payment.
(2) Fälligkeitstag kein Geschäftstag. Falls
ein Fälligkeitstag für die Zahlung von
Kapital
und/oder
Zinsen
kein
Geschäftstag ist, erfolgt die Zahlung
erst
am
nächstfolgenden
Geschäftstag; Anleihegläubiger sind
nicht berechtigt, eine Zinszahlung oder
eine andere Entschädigung wegen
eines solchen Zahlungsaufschubs zu
verlangen.
"Business Day" means a day (other
than a Saturday or Sunday) on which
(i) the Trans-European Automated
Real-Time Gross Settlement Express
Transfer (TARGET2) System and the
Clearing Systems settle payments in
euro, and (ii) banks are open for
business in Vienna.
"Geschäftstag" ist ein Tag (außer
einem Samstag oder Sonntag), an
dem
(i)
das
Trans-European
Automated
Real-Time
Gross
Settlement
Express
Transfer
(TARGET2)
System
und
die
Clearingsysteme Zahlungen in Euro
abwickeln, und (ii) die Banken in Wien
zum Geschäftsbetrieb geöffnet sind.
§7
Taxation
§7
Steuern
(1) Taxes. All payments of principal and
interest in respect of the Bonds will be
made free and clear of, and without
withholding or deduction for, any
taxes,
duties,
assessments
or
governmental charges of whatever
nature ("Taxes") imposed, levied,
collected, withheld or assessed by the
Republic of Austria or any political
subdivision or any authority of or in the
Republic of Austria that has power to
tax, unless the Issuer is compelled by
a law or other regulation to make such
withholding or deduction. In that event,
the Issuer will pay, subject to the
provisions of this § 7, such additional
amounts (the "Additional Amounts")
as will result in receipt by the
Bondholders of the same amounts as
they would have received if no such
withholding or deduction had been
required.
(1) Steuern. Sämtliche Zahlungen von
Kapital und Zinsen in Bezug auf die
werden
ohne Einbehalt oder Abzug von
Steuern, Abgaben, Festsetzungen
oder behördlichen Gebühren jedweder
Art (die "Steuern") geleistet, die von
der Republik Österreich oder einer
ihrer
Gebietskörperschaften
oder
Behörden mit der Befugnis zur
Erhebung von Steuern auferlegt,
erhoben, eingezogen, einbehalten
oder festgesetzt werden, es sei denn,
ein solcher Einbehalt oder Abzug ist
gesetzlich vorgeschrieben. In einem
solchen Falle wird die Emittentin,
vorbehaltlich
der
Bestimmungen
dieses § 7 solche zusätzlichen
Beträge (die "Zusätzlichen Beträge")
zahlen, so dass die Anleihegläubiger
die Beträge erhalten, die sie ohne
Einbehalt oder Abzug erhalten hätten.
(2) Exception.
(2) Ausnahme.
However,
no
such
Solche
Zusätzlichen
38
Additional Amounts shall be payable
with respect to such Taxes:
Beträge sind jedoch nicht zahlbar
wegen solcher Steuern:
(i) for which a Bondholder is liable
because of a relationship with the
Republic of Austria other than the
mere fact of him being the holder
of the relevant Bonds; or
(i) denen ein Anleihegläubiger wegen
einer anderen Beziehung zur
Republik Österreich unterliegt als
der bloßen Tatsache, dass er der
Inhaber
der
betreffenden
ist;
oder
(ii) in respect of which such
withholding
or deduction is
imposed on a payment to an
individual and is required to be
made pursuant to (i) European
Council Directive 2003/48/EC or
any
other
European
Union
Directive
implementing
the
conclusions of the ECOFlN
Council
meeting
of
26-27
November 2000 on the taxation of
savings income, or the EU-Source
Tax Act (EU Quellensteuergesetz,
BGBl I 2004/33), or, (ii) any
international
treaty
or
understanding relating to such
taxation and to which the Republic
of Austria or the European Union
is a party, or (iii) any law
implementing or complying with, or
introduced in order to conform to,
such Directive, Regulation, treaty
or understanding; or
(ii) deren Einbehalt oder Abzug auf
eine Zahlung an eine natürliche
Person erfolgt und zwar auf der
Grundlage der (i) Richtlinie
2003/48/EG der Europäischen
Union
oder
einer
anderen
Richtlinie der Europäischen Union
zur
Besteuerung
privater
Zinserträge, die die Beschlüsse
der ECOFIN-Versammlung vom
26. bis 27. November 2000
umsetzt
oder
des
EU
Quellensteuergesetzes (BGBl I
2004/33)
oder
(ii)
ein
internationaler Vertrag oder ein
Abkommen betreffend solch einer
Besteuerung und zu welcher die
Republik Österreich oder die
Europäische
Union
ein
Vertragspartner ist oder (iii)
aufgrund eines Gesetzes, das in
Umsetzung oder Entsprechung
einer
solchen
Richtlinie,
Verordnung,
Vertrag
oder
Abkommen erlassen wurde; oder
(iii) which the Bondholder would not
be subject to if he had presented
his Bonds for payment within 30
days from the due date for
payment, or, if the necessary
funds have not been provided to
the Paying Agent when due, from
the date on which such funds have
been provided to the Paying
Agent, and a notice to that effect
has been published in accordance
with § 13; or
(iii) denen der Anleihegläubiger nicht
unterläge, wenn dieser seine
Teilschuldverschreibungen binnen
30 Tagen nach Fälligkeit bzw.,
falls die notwendigen Beträge der
Zahlstelle bei Fälligkeit nicht zur
Verfügung gestellt worden sind, ab
dem Tag, an dem diese Mittel der
Zahlstelle zur Verfügung gestellt
worden sind und dies gemäß § 13
bekannt gemacht wurde, zur
Zahlung vorgelegt hätte; oder
(iv) which are withheld or deducted by
a Paying Agent if payment could
have been made by another
Paying Agent in a Member State
of the European Union without
(iv) die
von
einer
Zahlstelle
einbehalten
oder
abgezogen
werden, wenn die Zahlung von
einer anderen Zahlstelle in einem
Mitgliedsstaat der Europäischen
Union ohne den Einbehalt oder
39
such deduction or withholding; or
(v) which are withheld by a securities
custodian or a person acting as
collection
agent
for
the
Bondholder or which are levied
otherwise than by the Issuer
making a withholding or deduction
from any amounts of principal or
interest payable by it.
(3) Any reference in these Terms and
Conditions to principal or interest will
be deemed to include any Additional
Amounts in respect of principal or
interest (as the case may be) which
are payable under this § 7.
§8
Events of Default and
Repayment
Abzug
hätte
vorgenommen
werden können; oder
(v) die von einer Depotbank oder
einer als Inkassobeauftragten des
Anleihegläubigers
handelnden
Person oder auf andere Weise zu
entrichten sind als dadurch, dass
die Emittentin aus den von ihr zu
leistenden Zahlungen von Kapital
oder Zinsen einen Abzug oder
Einbehalt vornimmt.
(3) Eine
Bezugnahme
Anleihebedingungen auf
Zinsen schließt jegliche
Beträge im Hinblick auf
Zinsen ein, die gemäß
zahlbar sind.
in
diesen
Kapital oder
Zusätzlichen
Kapital bzw.
diesem § 7
§8
Kündigungsgründe und
Rückzahlung
(1) Events of Default. Each Bondholder
shall be entitled to terminate the
Bonds and to demand their immediate
redemption at their principal amount
together with interest accrued until the
repayment date, if any, if any of the
following events (each an "Event of
Default") occurs:
(1) Kündigungsgründe.
Jeder
Anleihegläubiger ist berechtigt, seine
zu
kündigen
und
deren
sofortige
Rückzahlung
zum
Nennbetrag,
zuzüglich allfälliger bis zum Tage der
Rückzahlung aufgelaufener Zinsen zu
verlangen, falls einer der folgenden
Kündigungsgründe vorliegt (jeweils ein
"Kündigungsgrund"):
(a) Non-Payment: the Issuer fails to pay
any principal or interest or any other
amounts due pursuant to § 7 on any of
the Bonds when due and such failure
continues for a period of 7 Business
Days (as defined in § 6(2)) after the
relevant due date; or
(a) Nichtzahlung: die Emittentin versäumt
es, Kapital oder Zinsen oder sonstige
nach
§7
auf
die
zahlbare
Beträge
innerhalb
von
7
Geschäftstagen (wie in § 6(2)
definiert) nach dem betreffenden
Fälligkeitsdatum zu zahlen; oder
(b) Breach of Other Obligations: the
Issuer does not perform or comply
with any one or more of its other
obligations under the Bonds and such
default is not remedied within 15
Business Days after the Paying Agent
has received notice thereof from a
Bondholder; or
(b) Verletzung anderer Verpflichtungen:
die Emittentin erfüllt eine oder
mehrere ihrer anderen Verpflichtungen
aus den Teilschuldverschreibungen
nicht ordnungsgemäß und dieser
Zustand wird nicht innerhalb von 15
Geschäftstagen,
nachdem
die
Zahlstelle
eine
diesbezügliche
Mitteilung durch den Anleihegläubiger
erhalten hat, behoben; oder
(c) Cross-Default: an obligation exceeding
(c) Drittverzug: eine von einem (Schieds-
40
EUR 20,000,000 (or the equivalent
thereof in any other currency) of the
Issuer or a Material Subsidiary which
has been finally established by an
(arbitration) court or a public authority
is not fulfilled, and such failure
continues for more than four weeks
after the Paying Agent has been
notified thereof by a Bondholder; or
)Gericht
oder
einer
Verwaltungsbehörde
rechtskräftig
festgestellte Schuld der Emittentin
oder
einer
Wesentlichen
Tochtergesellschaft mit einem EUR
20,000.000 (oder den Gegenwert in
einer
anderen
Währung)
übersteigenden Betrag wird nicht
erfüllt und diese Nichterfüllung dauert
länger als vier Wochen fort, nachdem
die Zahlstelle hierüber von einem
Anleihegläubiger
eine
Benachrichtigung erhalten hat; oder
(d) Enforcement of Security: a security
created to secure an obligation of the
Issuer is enforced by a contractual
party with the consent of the Issuer,
resulting in a material impairment of
the Issuer's ability to service its
obligations under the Bonds; or
(d) Verwertung von Sicherheiten: eine für
eine Verbindlichkeit der Emittentin
bestellte
Sicherheit
von
einer
Vertragspartei unter Zustimmung der
Emittentin verwertet wird und es
dadurch
zu
einer
wesentlichen
Beeinträchtigung der Fähigkeit der
Emittentin
kommt,
ihre
Verbindlichkeiten
aus
den
zu
bedienen; oder
(e) Suspension of Payments: the Issuer or
any of its Material Subsidiaries
suspends its payments generally or
announces its inability to meet its
financial obligations, or offers its
creditors a general arrangement to
pay its debts; or
(e) Einstellung von Zahlungen: die
Emittentin
oder
eine
ihrer
Wesentlichen Tochtergesellschaften
stellt ihre Zahlungen allgemein ein
oder gibt ihre Unfähigkeit bekannt, ihre
finanziellen Verpflichtungen zu erfüllen
oder bietet ihren Gläubigern eine
allgemeine Regelung zur Bezahlung
ihrer Schulden an; oder
(f)
(f)
Insolvency: any competent court
institutes
insolvency
proceedings
against the Issuer or any of its Material
Subsidiaries, or the Issuer or any of its
Material Subsidiaries applies for the
institutions of such proceedings, or an
application for the institution of such
proceedings has been made but
rejected by the competent court for
lack of assets; or
(g) Liquidation: the Issuer or any of its
Material Subsidiaries is liquidated
(except in connection with a merger or
other form of combination with another
company or in connection with another
reorganisation (within the meaning of
the Austrian Reorganisation Tax Act
Insolvenz: ein zuständiges Gericht
eröffnet ein Insolvenzverfahren gegen
die Emittentin oder eine ihrer
Wesentlichen Tochtergesellschaften,
oder die Emittentin oder eine ihrer
beantragt die Einleitung eines solchen
Verfahrens, oder der Antrag auf
Einleitung eines solchen Verfahrens
wurde gestellt, aber von dem
zuständigen Gericht mangels Masse
abgelehnt, oder
(g) Liquidation: die Emittentin oder eine
ihrer
Wesentlichen
Tochtergesellschaften wird liquidiert
(es sei denn, dies geschieht im
Zusammenhang
mit
einer
Verschmelzung, einer anderen Form
des Zusammenschlusses mit einer
41
(Umgündungssteuergesetz), provided
such other or new company or, as the
case may be, companies assumes all
liabilities under the Bonds and the
credit worthiness of such company is
equal or higher than the Issuer's; or
anderen
Gesellschaft
oder
im
Zusammenhang mit einer anderen
Umgründung
(im
Sinne
des
österreichischen
Umgründungssteuergesetzes), sofern
die andere oder neue Gesellschaft
oder gegebenenfalls die anderen oder
neuen
Gesellschaften
sämtliche
Verpflichtungen
aus
diesen
Teilschuldverschreibungen übernimmt
und die Kreditwürdigkeit dieser
Gesellschaft gleich oder höher als die
der Emittentin ist; oder
(h) Cessation of Business Operations: the
Issuer or any of its Material
Subsidiaries ceases or threatens to
cease to carry on the whole or
substantially the whole of its business
operations; or
(h) Einstellung der Geschäftstätigkeit: die
Emittentin
oder
eine
ihrer
stellt ihren gesamten oder ihren
nahezu gesamten Geschäftsbetrieb
ein oder droht, dies zu tun; oder
(i)
(i)
Change of Control. a Change of
Control (as defined below) occurs,
except where an internationally
recognised rating agency assigns to
the Issuer within 60 days after such
Change of Control a rating of at least
"BBB" in relation to its long-term senior
bonds. The Issuer shall publish a
Change of Control and the assignment
of a rating, if any, without delay
pursuant to § 13. A termination in
accordance with this sub-para (i) shall
only be effective where the respective
Default Notice pursuant to para (3) is
made within 30 days after the expiry of
the initial 60 days' period;
Kontrollwechsel: ein Kontrollwechsel
(wie unten definiert) erfolgt, es sei
denn, eine international anerkannte
Ratingagentur erteilt der Emittentin
innerhalb von 60 Tagen nach einem
derartigen Kontrollwechsel ein Rating
von zumindest "BBB" in Bezug auf
deren langfristige, nicht-nachrangige
Anleihen. Die Emittentin wird einen
Kontrollwechsel und die Erteilung
eines allfälligen Ratings unverzüglich
gemäß § 13 bekannt machen. Eine
Kündigung nach diesem Unterabsatz
(i) ist nur gültig, wenn die
entsprechende Kündigungserklärung
gemäß Absatz 3 innerhalb von 30
Tagen nach Ablauf der ursprünglichen
60 Tage Frist erfolgt;
whereas:
wobei:
"Material Subsidiary" within this § 8
means a Subsidiary of the Issuer
"Wesentliche Tochtergesellschaft"
im Sinne dieses § 8 meint eine
Tochtergesellschaft der Emittentin,
(i) the value of whose total assets
or turnover on a consolidated
basis equals or exceeds 10 per
cent. of the aggregate total assets
or turnover of the Issuer on a
consolidated basis; or
(i)
deren
gesamte
Vermögenswerte oder Umsätze
auf konsolidierter Basis wertmäßig
10% oder mehr der gemeinsamen
gesamten Vermögenswerte oder
Umsätze der Emittentin auf
konsolidierter Basis entsprechen;
oder
(ii) whose earnings before income
(ii) deren EBIT auf konsolidierter
42
and
taxes
(EBIT)
on
a
consolidated basis equals or
exceeds 10 per cent. of the
aggregate net operating income of
the Issuer on a consolidated basis;
and
Basis 10% oder mehr des
gesamten
Nettobetriebsergebnisses
der
Emittentin auf konsolidierter Basis
entspricht; und
a report by the Issuer’s auditor that in
his opinion on the basis of the most
recent audited consolidated financial
statements a Subsidiary of the Issuer
is or is not or was or was not a
Material Subsidiary shall, in the
absence of manifest error, be
conclusive and binding on all parties;
ein Bericht des Abschlussprüfers der
Emittentin,
dass
nach
seiner
Auffassung auf Basis des letzten
geprüften
konsolidierten
Jahresabschlusses der Emittentin eine
Tochtergesellschaft der Emittentin
eine Wesentliche Tochtergesellschaft
ist oder nicht ist oder war oder nicht
war, soll (sofern kein offensichtlicher
Fehler vorliegt) für alle Parteien
endgültig und bindend sein;
a "Change of Control Event" within
the meaning of this § 8 shall be
deemed to have occurred, if at any
time a person or several persons
acting in concert or third parties or
parties acting for such person(s) (other
than OMV Aktiengesellschaft and/or
International Petroleum Investment
Company of Abu Dhabi and/or any of
their wholly owned subsidiaries),
directly or indirectly acquire (i) more
than 50 per cent. of the voting rights
connected with the shares of the
Issuer, or (ii) the right to determine the
majority of the members of the
management board (Vorstand) and/or
the shareholders' representatives in
the supervisory board (Aufsichtsrat).
Als "Kontrollwechsel" im Sinne
dieses § 8 gilt, wenn eine oder
mehrere
gemeinsam
vorgehende
Personen oder eine Drittperson oder personen, die für eine solche Person
oder
Personen
handeln
(ausgenommen
OMV
Aktiengesellschaft
und/oder
International Petroleum Investment
Company of Abu Dhabi und/oder ihre
alleinigen Tochtergesellschaften), zu
irgendeiner Zeit direkt oder indirekt (i)
mehr als 50% der mit den Aktien der
Emittentin verbundenen Stimmrechte
oder (ii) das Recht, die Mehrzahl der
Mitglieder des Vorstands und/oder der
Gesellschaftervertreter im Aufsichtsrat
zu bestimmen, erworben haben.
(2) Expiry of termination right. The right to
declare Bonds due shall lapse if the
Event of Default has been cured
before the right is validly exercised. No
event or circumstance other than an
event specified in § 8(1) shall entitle
Bondholders to declare their Bonds
due and payable prior to their stated
maturity, save as expressly provided
for in these Terms and Conditions and
subject to applicable mandatory law.
(2) Erlöschen des Kündigungsrechts. Das
Kündigungsrecht erlischt, falls der
Kündigungsgrund vor Ausübung des
Rechts geheilt wurde. Vorbehaltlich
anwendbaren zwingenden Rechts
berechtigen andere Ereignisse oder
Umstände, die keines der in § 8(1)
genannten Ereignisse darstellen, den
Anleihegläubiger nicht dazu, seine
vorzeitig
zur Rückzahlung fällig zu stellen, es
sei denn, dies ist ausdrücklich in
diesen Anleihebedingungen bestimmt.
Unless an Event of Default according
to § 8(1)(d) to (i) exists at the same
time, a termination in the events
described in § 8(1)(b) or § 8(1)(c) shall
In den Fällen von § 8 (1)(b) oder §
8(1)(c) wird eine Kündigung, sofern
nicht zugleich einer der in § 8 (1)(a)
oder § 8(1) (d) bis (i) bezeichneten
43
become effective only if the Paying
Agent has received termination
notices by Bondholders with a
principal amount of at least 15 per
cent. of the then outstanding Bonds.
Kündigungsgründe
vorliegt,
erst
wirksam, wenn bei der Zahlstelle
Kündigungserklärungen
von
Anleihegläubigern im Nennbetrag von
mindestens
15%
der
dann
ausstehenden
eingegangen sind.
(3) Termination Notice. Any termination in
accordance with § 8(1) shall be made
by means of registered mail to the
Paying Agent. Notices shall become
effective with delivery to the Paying
Agent. The notice shall contain
evidence
that
the
respective
Bondholder at the time of such notice
is the holder of the relevant Bonds.
Such evidence may be provided by
means of a certificate of the
Bondholder’s depository bank or by
other appropriate means.
(3) Kündigungserklärung. Eine Kündigung
nach § 8(1) ist schriftlich in deutscher
Sprache per Einschreiben an die
Zahlstelle zu übermitteln. Mitteilungen
werden mit Zugang an die Zahlstelle
wirksam. Der Mitteilung ist ein
Nachweis darüber beizufügen, dass
der betreffende Anleihegläubiger zum
Zeitpunkt der Mitteilung Inhaber der
betreffenden
Teilschuldverschreibungen ist. Der
Nachweis
kann
durch
eine
Bescheinigung der Depotbank oder
auf andere geeignete Weise erbracht
werden.
§9
Prescription Period
§9
Verjährung
The limitation period for claims in
respect of principal of the Bonds shall
be thirty years, and in respect of
interest three years respectively, in
each case after due date.
Die Verjährungsfrist aus Ansprüchen
auf das Kapital beträgt dreißig Jahre
und aus Ansprüchen auf Zinsen drei
Jahre, jeweils ab Fälligkeit.
§ 10
Paying Agent
§ 10
Zahlstelle
(1) Paying Agent. Erste Group Bank AG
shall be the initial paying agent (the
"Paying Agent").
(1) Zahlstelle. Erste Group Bank AG ist
die
anfängliche
Zahlstelle
(die
"Zahlstelle").
(2) Status of the Paying Agent. The
Paying Agent acts solely as agent of
the Issuer and does not assume any
obligations towards or relationship of
contract, agency or trust for or with
any of the Bondholders.
(2) Rechtsverhältnisse der Zahlstelle. Die
Zahlstelle handelt ausschließlich als
Beauftragte
der
Emittentin
und
übernimmt
keine
Verpflichtungen
gegenüber den Anleihegläubigern; es
wird kein Vertrags-, Auftrags- oder
Treuhandverhältnis zwischen ihr und
den Anleihegläubigern begründet.
(3) Variation
or
Termination
of
Appointment. The Issuer reserves the
right at any time to vary or terminate
the appointment of any Paying Agent
and to appoint successor or additional
paying agents. Notice of any change
(3) Änderung oder Beendigung der
Bestellung. Die Emittentin behält sich
das
Recht
vor,
jederzeit
die
Benennung
der
Zahlstelle
zu
verändern oder zu beenden und
Nachfolger
bzw.
zusätzliche
44
in the paying agents or in the specified
office of any Paying Agent will
promptly be given to the Bondholders
pursuant to § 13. The Issuer will
procure that there will at all times be a
Paying Agent. The Issuer will also
procure that, so long as the Bonds are
listed on a stock exchange, there will
at all times be a paying agent with a
specified office in such city as may be
required by the rules of the relevant
stock exchange and appoint a
potential successor or a potential
additional paying agent in accordance
with such rules, such potential
successor or potential additional
paying agent being a credit institution
within the European economic area.
Zahlstellen
zu
ernennen.
Den
Anleihegläubigern
werden
Änderungen in Bezug auf die
Zahlstelle oder dessen angegebene
Geschäftsstelle umgehend gemäß
§ 13 bekanntgemacht. Die Emittentin
wird dafür sorgen, dass stets eine
Zahlstelle ernannt ist. Die Emittentin
wird ferner dafür sorgen, dass, so
lange die Teilschuldverschreibungen
an einer Wertpapierbörse notiert sind
und die Regularien dieser Börse dies
verlangen, eine Zahlstelle mit einer
benannten Geschäftsstelle an dem
von
der
betreffenden
Börse
vorgeschriebenen Ort ernannt ist und
einen eventuellen Nachfolger bzw.
eine eventuelle zusätzliche Zahlstelle
in Übereinstimmung mit diesen
Regularien zu ernennen, wobei es
sich bei einem eventuellen Nachfolger
bzw. einer eventuellen zusätzlichen
Zahlstelle
um
ein
Kreditinstitut
innerhalb
des
europäischen
Wirtschaftsraums handeln wird.
§ 11
Further Issues of Bonds,
Repurchase, Cancellation
§ 11
Begebung weiterer
Teilschuldverschreibungen,
Ankauf, Entwertung
(1) Further Issues of Bonds. The Issuer
may - apart from issues of bonds that
do not form a single series with the
Bonds - at any time without the
consent of the Bondholders issue
further bonds which have the same
Terms and Conditions as these Bonds
in all respects (if applicable, except for
the issue date, the start of the interest
accrual and the issue price) so that
they form a single bond with these
Bonds. The Issuer shall be free to
issue further bonds.
(1) Begebung
weiterer
Die
Emittentin ist - neben der Emission
weiterer
Teilschuldverschreibungen,
die
mit
diesen
keine
einheitliche Serie bilden - berechtigt,
jederzeit ohne Zustimmung der
Anleihegläubiger
weitere
mit
gleicher Ausstattung (gegebenenfalls
mit Ausnahme des Tages der
Emission, des Verzinsungsbeginns
und des Ausgabepreises) in der Weise
zu emittieren, dass sie mit diesen
eine
einheitliche
Schuldverschreibung
bilden. In der Begebung weiterer
Anleihen ist die Emittentin frei.
(2) Repurchase. The Issuer may at any
time purchase Bonds in the open
market or otherwise and at any price.
Bonds so acquired may at the
discretion of the Issuer be held, sold or
(2) Rückkauf. Die Emittentin ist berechtigt,
Teilschuldverschreibungen im Markt
oder anderweitig zu jedem beliebigen
Preis zu kaufen. Die von der
Emittentin
erworbenen
45
submitted to the Paying Agent in order
to be cancelled.
können
nach Wahl der Emittentin von ihr
gehalten, weiterverkauft oder bei der
Zahlstelle
zwecks
Entwertung
eingereicht werden.
(3) All Bonds completely repaid must be
cancelled without delay and cannot be
reissued or sold again.
(3) Sämtliche vollständig zurückgezahlten
sind
unverzüglich zu entwerten und können
nicht wieder emittiert oder wieder
verkauft werden.
§ 12
Listing
§ 12
Börsenotierung
It is intended to apply for the
admission to trading of the Bonds on
the Second Regulated Market of the
Vienna Stock Exchange.
Es ist beabsichtigt, die Zulassung der
zum
Handel im Geregelten Freiverkehr an
der Wiener Börse zu beantragen.
§ 13
Notices
§ 13
Mitteilungen
(1) Notices. All notices concerning the
Bonds to the Bondholders shall be
published in the Amtsblatt zur Wiener
Zeitung or, if it ceases to be published,
in another newspaper with circulation
in whole Austrian or any other media
permissible by law. Each such notice
shall be deemed to have been validly
given on the date of publication.
(1) Mitteilungen.
Alle
die
betreffenden Mitteilungen an die
Anleihegläubiger sind im Amtsblatt zur
Wiener Zeitung oder, falls diese ihr
Erscheinen einstellt, in einer anderen
Tageszeitung mit Verbreitung in ganz
Österreich oder jedem anderen
aufgrund gesetzlicher Bestimmungen
zulässigen Medium zu veröffentlichen.
Jede derartige Mitteilung gilt mit dem
Tag der Veröffentlichung als wirksam
erfolgt.
(2) Notice via electronic means. If the
Bonds are admitted for trading on any
stock exchange, notices to the
Bondholders will be valid if published
through electronic means having
general
circulation
within
the
European Union and in the jurisdiction
of the respective stock exchange on
which the Bonds may be listed from
time to time, for so long as the Bonds
are listed on the respective exchange
and the rules of any such exchange so
require. Any such notice shall be
deemed to have been given on the
date of the first publication or, when
required to be published by more than
one electronic means, on the date on
which the notice has first been
published by all required electronic
(2) Mitteilungen in elektronischer Form.
Falls die Teilschuldverschreibungen
zum
Handel
an
einer
Börse
zugelassen werden, gelten sämtliche
Mitteilungen an die Anleihegläubiger
als ordnungsgemäß bekannt gemacht,
wenn
sie
durch
elektronische
Mitteilungsformen mit Verbreitung
innerhalb der Europäischen Union und
dem
Staat
der
jeweiligen
Wertpapierbörse,
an
der
notiert
sind,
durch
elektronische
Veröffentlichung veröffentlicht werden,
solange diese Notierung fortdauert
und die Regeln der jeweiligen Börse
dies erfordern. Jede Mitteilung gilt mit
dem Tag der ersten Veröffentlichung
als bekannt gemacht; falls eine
46
means.
(3) Notice via the Clearing System.
Notices to Bondholders may (subject
to applicable stock exchange rules
and requirements), so long as any
Global Bond representing the Bonds is
held on behalf of the Clearing System,
be given in lieu of publication by
electronic means pursuant to § 13(2)
by delivery of the relevant notice to the
Clearing System for communication to
the Bondholders.
§ 14
Governing Law and Jurisdiction
Veröffentlichung in mehr als einer
elektronischen
Mitteilungsform
vorgeschrieben ist, ist der Tag
maßgeblich,
an
dem
die
Bekanntmachung erstmals in allen
erforderlichen
elektronischen
Mitteilungsformen erfolgt ist.
(3) Mitteilungen über das Clearingsystem.
Mitteilungen an die Anleihegläubiger
können anstelle der Veröffentlichung
durch elektronische Mitteilungsform
nach
Maßgabe
des
§13(2),
(vorbehaltlich
anwendbarer
Börsenvorschriften
bzw.
–regeln)
solange
eine
die
verbriefende Sammelurkunde durch
das Clearingsystem gehalten wird,
durch Abgabe der entsprechenden
Bekanntmachung
an
das
Clearingsystem zur Weiterleitung an
die Anleihegläubiger ersetzt werden.
§ 14
Anwendbares Recht und
Gerichtsstand
(1) Governing law. The Bonds are
governed by the laws of the Republic
of Austria.
(1) Anwendbares
Recht.
Die
Teilschuldverschreibungen unterliegen
österreichischem Recht.
(2) Place of Jurisdiction. For all disputes
which may arise out or in connection
with the Bonds, the commercial court
competent for Vienna, Inner City, shall
have exclusive jurisdiction. The
submission to the jurisdiction of the
courts of Vienna shall not (and shall
not be construed so as to) limit the
right of any Bondholder (in particular
consumers) to take proceedings in any
other court of competent jurisdiction ,
nor shall the taking up of proceedings
in any one or more jurisdictions
preclude the taking up of proceedings
in any other jurisdiction (whether
concurrently or not) if and to the extent
permitted by law.
(2) Gerichtsstand.
Für
sämtliche
Rechtsstreitigkeiten, die aus oder im
Zusammenhang
mit
den
Teilschuldverschreibungen entstehen,
ist das in Handelssachen zuständige
Gericht für Wien, Innere Stadt,
ausschließlich
zuständig.
Die
Gerichtsstandsvereinbarung
beschränkt nicht das Recht der
Anleihegläubiger
(insbesondere
Konsumenten), Verfahren vor einem
anderen
gesetzlich
zuständigen
Gericht anzustrengen. Ebenso wenig
schließt die Einleitung von Verfahren
an
einem
oder
mehreren
Gerichtsständen die Einleitung von
Verfahren
an
einem
anderen
Gerichtsstand aus (gleichgültig, ob
diese gleichzeitig geführt werden oder
nicht), falls und soweit dies rechtlich
zulässig ist.
47
(3) Place of Performance. Place of
performance shall be Vienna, Republic
of Austria.
(3) Erfüllungsort. Erfüllungsort ist Wien,
Republik Österreich.
§ 15
Language
§ 15
Sprache
These Terms and Conditions are
drawn up in the German language and
provided with an English language
translation. The German version shall
be the only legally binding version.
The English translation is for
convenience only.
Diese Anleihebedingungen sind in
deutscher Sprache abgefasst und mit
einer Übersetzung in die englische
Sprache versehen. Der deutsche
Wortlaut ist allein rechtsverbindlich.
Die
englische
Übersetzung
ist
unverbindlich.
48
Use of proceeds
The Issuer intends to use the net proceeds of the issue of the Bonds for general corporate
purposes, including the strengthening of its financial position and to expand its funding
options. In particular, the proceeds are intended to be used for refinancing debt related to
recent investments, among others for the new high-pressure, low-density polyethylene
(LDPE) plant in Sweden, which is one of Borealis' largest investments in Europe. In addition,
the restructuring of the existing debt portfolio, terming out Borealis' debt and optimising the
overall finance structure is part of this initiative.
49
Borealis AG
GENERAL
The legal name of the Issuer is Borealis AG. The Issuer's commercial name is "Borealis AG"
or "Borealis". The Issuer is registered with the Austrian companies register under
FN 269858 a. The competent court for registration is the commercial court Vienna
(Handelsgericht Wien). The Issuer was initially registered with the Companies Register on 5
November 2005. It has been established for an indefinite period of time.
The Issuer is a stock corporation (Aktiengesellschaft) incorporated and existing under
Austrian law and has its business address at Wagramerstraße 17-19, 1220 Vienna, Austria.
Its telephone number is +43 (0) 1 224 00-0.
HISTORY AND DEVELOPMENT
1994
Borealis was formed in 1994 by the merger of the petrochemical and polyolefins businesses
of Neste and Statoil. The head office opens, located in Lyngby, Denmark.
1995
In October, the first Borstar® polyethylene ("PE") plant starts up in Porvoo.
1997
Neste sells its 50 per cent. shareholding in Borealis equally to OMV Aktiengesellschaft
("OMV") and to International Petroleum Investment Company ("IPIC") of Abu Dhabi. Statoil
retains a 50 per cent. share.
1998
The Abu Dhabi National Oil Company and Borealis agree to build and operate a
petrochemical complex in Abu Dhabi and to establish a marketing company in Singapore. The
joint venture is named Borouge ("Borouge").
2000
Start-up of Borealis’ first Borstar® polypropylene ("PP") plant at Schwechat, Austria.
2001
Borouge starts up a new petrochemical complex in Ruwais, UAE. It consists of a 600,000
tons per year ethylene cracker and two Borstar® PE plants with a combined production
capacity of 450,000 tons per year.
2002
The first third-party licence for Borealis’ Borstar® technology begins production at the
Shanghai Petrochemical Company in China.
50
2004
The company reduces its European footprint from seven sites (in 2001) to four operational
hubs: Scandinavia (Norway and Sweden), Belgium, Central Europe (Austria and Germany)
and Finland.
2005
IPIC and OMV agree to purchase Statoil’s 50 per cent. shareholding in Borealis. The new
Borealis ownership is 65 per cent. IPIC (directly/indirectly) and 35 per cent. OMV
(directly/indirectly).
2006
Borealis moves its head office from Copenhagen, Denmark, to Vienna, Austria.
Borouge and Borealis announce the establishment of an innovation centre in the United Arab
Emirates (UAE).
2007
AMI group, a manufacturer in the area of melamine and fertilizers, is integrated into the
Borealis group by way of contribution by the shareholders OMV and IPIC. Accordingly, the
shareholder structure of Borealis changes, so that IPIC holds 64 per cent. and OMV holds 36
per cent. of Borealis' shares.
Borealis' changes its legal form: It is converted from a limited liability company into a stock
corporation and its new firm name is Borealis AG.
2009
Borealis inaugurates its international innovation headquarters in Linz, Austria.
CORPORATE PURPOSE
According to § 3 of the Issuer's articles of association, the corporate purpose of the Issuer
comprises, the development, the manufacture, distribution, marketing and sale of chemical
products and plastic materials, directly and indirectly, and granting and acquisition of related
licenses, to hold shares in companies, directly or indirectly, in particular in companies
operating in the chemical and plastic field, as well as to manage and provide services to such
companies.
The Issuer is entitled to carry out all business activities which are considered necessary or
useful to achieve its objects as set out above, in particular the opening of national and foreign
branch offices and subsidiaries, purchase and sale of real estate, conclusion of leasing
contracts, and the acquisition of investments in other companies doing business in related
areas.
According to § 3 of the Issuer's articles of association, the Issuer is not entitled to do business
as a bank and to provide financial services.
SHARE CAPITAL
The Issuer's share capital (Grundkapital) amounts to EUR 300,000 and is divided into
300,000 no-par value bearer shares (Stückaktien). The share capital of the Issuer is fully
51
paid-in. The Issuer's shares are not listed, the Austrian Corporate Governance Code is not
applicable to the Issuer.
SHAREHOLDERS
The Issuer has the following two shareholders: International Petroleum Investment Company
(IPIC) of Abu Dhabi with a direct (3.333 per cent.) and indirect (60.667 per cent. via Denmark
Holdings ApS) participation of in total 64 per cent., and OMV Aktiengesellschaft with a direct
(3.333 per cent.) and indirect (32.667 per cent. via OMV Refining & Marketing GmbH)
participation of in total 36 per cent.
The Issuer's shareholder structure can be depicted as follows:
International Petroleum
Investment Company
20% (directly)
64%
(directly and indirectly)
OMV Aktiengesellschaft
36% (directly and indirectly)
Borealis AG
IPIC holds a direct ownership of 20 per cent. of all voting rights of OMV, and is a member of a
shareholders' syndicate with Österreichische Industrieholding AG (ÖIAG, the Austrian
Republic's investment and privatization agency), which controls in aggregate 51.5 per cent. of
the voting rights in OMV. Mr Khadem Al Qubaisi is the chairman of the supervisory board of
the Issuer, and Mr Gerhard Roiss, deputy chairman of the executive board of OMV acts as
the vice chairman of the supervisory board of the Issuer.
INTERNATIONAL PETROLEUM INVESTMENT COMPANY
IPIC is fully owned by the Government of the Emirate of Abu Dhabi, and is responsible for
investments in refining and marketing of petrochemicals and other hydrocarbons-related
sectors outside the Emirates and operating primarily in the Middle East, Europe and Asia.
IPIC is supervised by an independent board of directors headed by Mr. H. H. Sheikh Mansour
Bin Zayed Al Nahyan, Minister of Presidential Affairs, Government of United Arab Emirates
and member of the Supreme Petroleum Council of Abu Dhabi.
OMV AKTIENGESELLSCHAFT
As a leading oil and gas group in Central Europe, OMV is active in the business of refining
and marketing in 13 countries through the operation of four refineries in Austria, Germany and
Romania, as well as a 45 per cent. shareholding in Germany’s Bayernoil refineries.
DEPENDENCY WITHIN THE GROUP
A key element of the business strategy of the Issuer is to strengthen the competitiveness of
its business through long-term feedstock integration with the Issuer's owners and strategic
partners. As an integrated polyolefin manufacturer, Borealis’ relationship with its shareholders
52
is aimed at ensuring the supply of hydrocarbon feedstocks for the Issuer's crackers, and
olefins for Borealis’ PE and PP plants.
The Issuer has concluded a number of contracts with its shareholders (including affiliates of
its shareholders) ordinary course of business, all of which are at arm' length terms.
In 2003, IPIC and OMV together with Statoil provided subordinated shareholder funds in an
amount of EUR 103 million to support the Issuer during a challenging point in the operating
cycle. In addition, throughout the years, the shareholders have collected only modest
dividends. For example, in the fiscal year 2007, of the EUR 328 million in net profit for the
year of 2006, EUR 45 million (less than 14 per cent.) were distributed as a dividend. The
shareholders determined that in light of the difficult operating environment in 2009 no dividend
will be paid, despite the net profit for the year of EUR 239 million for the fiscal year 2008.
RELATIONSHIP AND RELATED PARTY TRANSACTIONS
On 6 July 2009 IPIC, the majority shareholder of Borealis acquired Nova Chemicals
Corporation ("Nova"). In August 2009, IPIC, OMV and Borealis entered into an agreement in
principle ("AiP") to define the future corporate governance structure of Nova, including the
composition of a board of directors and the creation of an owners' committee that will consist
of four members – two nominated by IPIC and two nominated by OMV. Under the AiP,
Borealis is entitled to acquire a participation of approximately 24.9% of Nova subject to a
customary share purchase agreement satisfactory to both Borealis and IPIC. The AiP also
contemplates in principle that in order to optimise synergies between Borealis and Nova, the
parties intend to align the activities of and integrate the two companies. On 27 October 2009,
the parties received clearance by the European antitrust authorities to pursue the transaction.
ORGANISATIONAL STRUCTURE
SUBSIDIARIES
The Issuer has two shareholders (see above "Shareholders") and various subsidiaries. The
following diagram shows major participations in significant subsidiaries within the Borealis
Group as of 31 December 2009:
53
Com pany name
Country, City
Curr
ency
Issued s hare Percentage
capital
of shares
ow ned
Net as set Net profit of
value (EUR
the year
m illion) (EUR m illion)
Borealis AG
 Borealis A/S
 Borealis Sverige AB
Denmark, Copenhagen
DKK
500,000
100
1,158
370
Sw eden, Stenungsund
SEK
1,063,000
100
313
0
 Borealis Holding AB
 Borealis AB
SEK
1,300,050
100
1
0
SEK
65,000,000
100
652
79
 Etenförsörjning i Stenungsund AB
 Borealis group services AS
SEK
5,000,000
80
0
0
Norw ay, Bamble
NOK
1,000,000
100
9
0
 Borealis Polymers Oy
 Borealis Technology Oy
Finland, Porvoo
EUR
108,321,644
100
694
50
Finland, Porvoo
EUR
43,728,860
100
210
21
 Borealis Polyethylene Oy
Finland, Porvoo
EUR
210,000,000
100
199
-1
 IOB Holdings A/S
 Borealis Financial Services N.V.
Denmark, Copenhagen
DKK
500,000
100
331
0
Belgium, Mechelen
EUR
99,189,000
100
127
6
 Borealis Polymers N.V.
 Borealis Kallo N.V.
 Borealis Antw erpen Compounding N.V.
Belgium, Beringen
Belgium, Kallo
EUR
EUR
359,445,611
40,575,176
100
100
478
66
-22
2
Belgium, Zw ijndrecht
EUR
277,054
100
4
0
 Borealis Brasil S.A.
 Borealis UK Ltd
Brazil, Itatiba
BRL
94,743,513
80
45
5
UK, Manchester
GBP
15,000
100
0
0
 Borealis Funding Company Ltd
Isle of Man, Ramsey
EUR
10
100
0
0
 Borealis Insurance A/S
 Borealis GmbH (Austria) ApS
Denmark, Copenhagen
EUR
7,092,000
100
38
5
Denmark, Copenhagen
EUR
3,500,000
100
29
-12
 Borealis N.V. (Belgium) ApS
 Borealis France S.A.S
Denmark, Copenhagen
DKK
2,000,000
100
473
2
France, Suressnes
EUR
207,408
100
1
0
 Poliolefinas Borealis Espana S.A.
 Borealis s.r.o.*
Spain, Barcelona
EUR
60,000
100
1
0
Czech Rep., Prague
CZK
500,000
100
0
0
 Borealis Polska Sp Z.o.o.*
 Borealis Portugal SGPS S.A.
Poland, Warschau
PLN
50,000
100
0
0
Portugal, Sines
EUR
50,000
100
17
0
 Borealis Polymere GmbH
 Borealis Deutschland GmbH
Germany, Burghausen
EUR
18,406,508
100
118
5
Germany, Dusseldorf
EUR
154,000
100
0
1
 Borealis Polyolefine GmbH
 Borealis Plasticos S.A. de C.V.*
Austria, Schw echat
EUR
46,783,928
100
121
-69
Mexico, Mexico
MXN
50,000
100
0
0
 Borealis Asia Ltd
 Borealis Italia S.p.A.
Hong Kong, Hong Kong
HKD
500,000
100
0
0
Italy, Monza
EUR
13,725,600
100
13
1
 Borealis Compounds Inc.
 Borealis Agrolinz Melamine GmbH
US, Rockport
USD
50,000
100
50
1
Austria, Linz
EUR
70,000
100
103
-9
 Borealis Agrolinz Melamine Deutschland GmbH
 Agrolinz Melamine International North America Inc.*
Germany, Wittenberg
EUR
500,000
100
9
-18
US, Chicago
USD
100,000
100
0
0
 Agrolinz Melamine International Asia Pacif ic Pte.Ltd.*
 A.M.I. Finserv Ltd.
Singapore, Singapore
SGD
100,000
100
0
0
Isle of Man, Douglas
GBP
2,000
100
0
0
 LINZER AGRO TRADE GmbH
 LINZER AGRO TRADE Hungary Kft.
Austria, Linz
EUR
35,000
100
12
3
Hungary, Budapest
HUF
500,000,000
100
3
-2
 LINZER AGRO TRADE Czech Republic spol. s.r.o.*
 LINZER AGRO TRADE Slovakia s.r.o.*
Czech Rep., Budw eis
CZK
2,000,000
100
0
0
Slovakia, Chotin
EUR
446,000
100
1
0
 LINZER AGRO TRADE d.o.o.*
 LINZER AGRO TRADE ROMANIA S.R.L*
Serbia, Belgrado
EUR
800,000
100
1
0
Romania, Bucharest
RON
5,306,650
100
0
0
 LINZER AGRO TRADE d.o.o. za trgovinu*
Croatia, Klisa
HRK
21,200
100
0
0
* Excluded from the consolidation due to immateriality
Source: Audited consolidated financial statements as of 31 December 2009
PRODUCTION SITES
The Borealis Group has production sites worldwide (the following figures relate to the
business year 2009 and are based on information provided by the Issuer):
Austria
Borealis has two PP plants, one Borstar PE plant, two low-density polyethylene plants (LDPE)
and one compounding unit in Schwechat, with the following capacity:
Capacity
Kilotons per annum
PP
435
PE/LDPE
545
Compound
105
54
Borealis employs a total of 510 people in Schwechat and 760 people in the melamine and
fertilizer production in Linz.
Belgium
In Beringen, Borealis has two PP plants, one high density polyethylene (HDPE) plant and a
compounding plant with the following capacity:
Capacity
Kilotons per annum
PP
385
Compound
70
The HDPE unit is planned to be closed in the first half year of 2010. 450 people are employed
in Beringen.
At its facilities in Kallo, Borealis produces propylene and polypropylene:
Capacity
Kilotons per annum
PP
300
Propylene
480
A total of 160 persons are employed in Kallo.
In Zwijndrecht, Borealis operates PE compounding for low density polyethylene and material
handling facilities. The compounded polyethylene is used mainly for wire and cable products.
90 people are employed in Zwijndrecht.
Brazil
In both its locations in Brazil, Borealis produces PP compounds through specific extruders
with automatic formulation control system and special auxiliary equipments.
Capacity of Itatiba:
Capacity
PP Compounds
Kilotons per annum
25
A total of 90 persons are employed in Itatiba
Capacity of Triunfo:
Capacity
PP Compounds
Kilotons per annum
35
40 persons are employed in Triunfo.
Borealis employs a total of 130 people in Brazil.
Finland
In Porvoo, Borealis uses a fully integrated petrochemical complex comprising five plants.
These include:
55

a cracker for the production of olefins (ethylene, propylene and butadiene);

a phenol and aromatics plant (that produces phenol, acetone, benzene and cumene);

two plants for PE;

one plant for PP, and

one compounding plant
with the following capacities:
Capacity
Kilotons per annum
Ethylene
380
Propylene
220
Phenol
185
PE
390
PP
220
Compounds
42
A total of 920 persons are employed in Porvoo.
Germany
Borealis has two PP plants and one high-density polyethylene plant (HDPE) in Burghausen,
Germany:
Capacity
Kilotons per annum
PP
580
HDPE
175
A total of 200 persons are employed in Burghausen.
Melamine is produced at Borealis’ facilities in Piesteritz, as well as in Linz, Austria, where
plant nutrients are also manufactured.
Italy
Borealis' facilities in Monza, Italy comprise a compounding production unit and a customer
service centre:
Capacity
PP Compounds
Kilotons per annum
30
A total of 80 persons are employed in Monza.
Sweden
Borealis has three PE plants, one cracker for ethylene and propylene production in
Stenungsund, Sweden:
56
Capacity
Kilotons per annum
Ethylene
620
Propylene
228
PE
565
A total of 970 persons are employed in Stenungsund.
United States of America
The stand-alone compounding facility in Port Murray, New Jersey, is dedicated to Wire and
Cable production and specialising in medium and high voltage insulations, semi-conductive
and automotive cable grades:
Capacity
Kilotons per annum
PE Compounds
65
A total of 100 persons are employed in New Jersey.
United Arab Emirates / Asia
Through its joint-venture Borouge, with the Abu Dhabi National Oil Company, Borealis is
covering the Asian and the Middle Eastern markets. Borouge's current capacity is 600
kilotons of PE per year.
For information on the planned expansion, see "Investments", page 58.
LEGAL PROCEEDINGS
The Issuer has no information on any governmental, legal or arbitration proceedings, nor is
the Issuer aware of any such proceedings which are pending or threatening, during a period
covering the previous 12 months which may have, or have had in the recent past, significant
effects on the Issuer and/or the Borealis Group's financial position or profitability.
INVESTMENTS
In December 2009, Borealis announced an upcoming investment of approximately EUR 75
million (Source: Information provided by the Issuer) in a catalyst plant. The semi-commercial
R&D catalyst plant will focus on the scale-up and production of catalysts using Borealis' own
proprietary Sirius production technology
Borealis is currently building a new LDPE plant with a capacity of 350 kilotons per annum in
Stenungsund, Sweden. The value of the investment exceeds EUR 400 million (Source:
Information provided by the Issuer). Embedded in a scrap and build programme at the
Stenungsund site, the project is planned to improve the profitability chain of production,
reducing the total amount of reactors and compounding lines. The start-up activities are
ongoing with the final start-up planned for 2010.
A EUR 30 million (Source: Information provided by the Issuer) investment in a Borstar® PP
pilot plant at Schwechat, Austria, is currently in the finalisation phase. The purpose of the
plant is to enable increased development of advanced PP grade which can be produced
commercially in the Borstar® PP full scale plants in Schwechat, Burghausen and later on in
Borouge. Improvements in mechanical, flow, surface and optical properties of products are
57
targeted which are aimed to improve Borealis’ position in pipe, advanced packaging and
automotive industries mainly in Central and Eastern Europe.
The Borstar® PE and PP capacity expansion in both Europe and the Middle East are a core
aspect of the strategy of Borealis and Borouge. The most significant growth plan entails an
increase of the Borouge production capacity in Abu Dhabi to 4.5 million tonnes per year of
Borstar® polyolefins, which is intended to be established in two major steps:

Borouge 2, the start of which is scheduled for mid 2010, is planned to introduce two
Borstar® PP plants with capacities of 400 kilotons each and one Borstar® PE plant
capacity of 540 kilotons. The latter is expected to be the largest multimodal PE
production plant worldwide.

The Borouge 3 project is planned to add two 540 kilotons Borstar® PE and two 480
kilotons Borstar® PP plant capacities. In addition, a 350 kilotons LDPE plant with
extrusion and soaking facilities is planned to produce wire and cable grades. Completion
of the Borouge 3 project is scheduled for around 2014.
Borealis finances its operations and investments through a variety of funding arrangements.
At the end of 2009, the group has committed credit lines available of EUR 1,231 million,
including a 1,000 million syndicated credit facility. In addition, the group has committed
financings that include financing arrangements with commercial banks and special institutions
(EIB, OeKB, etc), a private placement of notes in the US, specific investment financings, and
a trade receivables securitisation programme.
MATERIAL CONTRACTS
The Issuer has not entered into any material contracts that are not entered into in the ordinary
course of business, which could result in any group member being under an obligation or
entitlement that is material to the Issuer's ability to meet its obligation to the Bondholders in
respect of the Bonds.
The Issuer is not aware of any arrangements, the operation of which may at a subsequent
date result in a change in control of the Issuer.
58
Business Overview
GENERAL
The Borealis Group operates within two business segments: One specialised in the
development, production and marketing of a range of plastic materials, which have the
generic name "polyolefins". This business segment comprises polyethylene and
polypropylene. These products are further processed by customers for either industrial or
consumer end-use applications. The other business segment specialises in producing base
chemicals, including ethylene, propylene, phenol and aromatics, melamine and plant
nutrients.
MAIN ACTIVITY
POLYOLEFINS
The polyolefins business segment provides PE and PP to a diverse range of industries. The
Issuer focuses on generating value-added solutions for the following strategic areas:
Infrastructure
Pipe Systems
Borealis is a leading global provider of advanced polyolefin plastics solutions for the pipe
industry (source: own sales of the Borealis Group as percentage of the reported demand
published by CMAI). The Issuer has developed a broad product and service portfolio: The
applications include water and gas distribution, waste and sewage disposal, chemical and
industrial projects, in-house plumbing and heating, as well as oil and gas exploration and
transport.
Energy and Communication Cables
As a leading (source: own sales of the Borealis Group as percentage of the reported demand
published by CMAI) provider of polyolefin compounds for the global wire and cable industry,
Borealis' products are key components in low, medium and high-voltage energy transmission
and distribution cables, in data and communication cables, and in building and automotive
wires.
Borealis focuses on developing a range of high performance products, cable production
technology and innovative installation techniques to address the needs of customers across
the value chain.
Advanced Packaging
Polyolefins are, in particular due to their flexibility, used as packaging material for a number of
applications, including healthcare, courier bags, food packaging, flexible and rigid transport
packaging, bottles, crates, boxes, trays, large containers and pallets.
Mobility
Borealis supplies a range of plastics solutions to the automotive industry that are used for
dashboards, door side claddings, front ends, air vent systems, bumpers and under-body
shieldings. These solutions include developments such as zero gap applications for bumpers,
off-line painted body panels and scratch resistant materials for car interiors and exteriors.
Borealis contributes to the construction of light weight cars by sourcing light weight materials
59
for automotive body panels. A next step will be the development of body panels based on the
Borstar® technology within 2010, which is aimed to enable new car concepts (chassis of
carbon fibre and plastic body panels glued to it).
BASE CHEMICALS
The base chemicals business segment comprises the following business units:
Feedstocks and Olefins
As an integrated polyolefins company, Borealis manages the supply of hydrocarbon
feedstocks for its crackers, and olefins to its PE and PP plants. This business unit manages
the supply of raw materials, ie hydrocarbon feedstocks (e.g. natural gas, naphthenic oil etc.)
for the conversion into the key building blocks (ethylene and propylene – "monomers") for the
production of PE and PP at its locations in Finland and Sweden. Such conversion is carried
out in process units close to or either connected by pipeline to the polymerisation plants which
produce PE and PP. It also handles the contractual purchasing arrangements at other sites.
The Issuer owns crackers in Finland, Sweden and Abu Dhabi that produce feedstock
(monomers) for its PE and PP plants, while propylene is also produced in a propane
dehydrogenation plant in Belgium. Borouge is a joint venture between the Abu Dhabi National
Oil Company and the Issuer. It has production facilities at Ruwais in the UAE for ethylene and
PE and sales marketing operations throughout Asia and the Middle East.
Besides purchasing from the spot market, the balance of feedstock and olefins required for
Borealis' plants and those of its joint ventures are purchased from its shareholders or joint
venture partners. A range of co-products from the steam cracking process such as pygas and
butadiene are sold to external markets.
Borealis' steam crackers have been designed to utilise feedstocks other than naphtha, most
notably ethane and propane. Borealis therefore can take advantage of price differentials to
generate a cost advantage.
Phenol and Aromatics
Phenol and cumene as well as acetone are produced in Finland and are sold mainly to the
adhesive, fibre, epoxy resin and polycarbonate industries in northern Europe.
Acetone is commonly used in solvents for paints, acrylics, fibres and pharmaceuticals.
Cumene is a feedstock for other chemical processes. Phenol is used in adhesives,
construction materials, carpets, CDs, DVDs, mobile phones and household appliances.
Melamine and Plant Nutrients
Borealis is a provider of plant nutrients in the Danube region (comprising Germany, Austria,
Czech Republic, Slovakia, Hungary, Romania, Croatia, Serbia and Bulgaria). The production
facility is fully integrated into an industrial complex in Linz, Austria.
Melamines are also produced in Linz, Austria, and in Piesteritz, Germany. Melamine products
include coatings, compounds for houseware, concrete liquefiers, paint resins, fibreboard
binders, special resins for textile and paper finishing, and fireblockers.
60
NEW PRODUCTS AND ACTIVITIES
INNOVATION
Borealis’ market position has largely been achieved through its Borstar® technology (see
below) and its investment in research and development. Approximately 30 per cent. of
Borealis’ research and development budget is dedicated to innovation.
Borealis’ polymer research and product development focuses on high-performance, costeffective, differentiated polymers. Approximately 8 per cent. of the Issuer's workforce is
allocated to the technology organisation at three innovation centres in Austria, Finland and
Sweden.
BORSTAR® TECHNOLOGY
The Borstar® technology is built on process and catalyst technology development. The
unique feature of Borstar® is the loop-gas phase reactor combination that allows producing
multimodal polymers, both for PE and PP. In combination with Borealis' proprietary catalyst
systems, the Borstar® process has the capability to produce high performance, high value
grades and shows a potential to be developed further.
61
Markets and sector environment
GENERAL
While Europe has historically been Borealis’ core market, the Issuer's footprint today is
considerably more global with production facilities, innovation centres and service centres
serving customers in more than 120 countries.
Polyolefins and associated products represented in 2009 approximately 71 per cent. of
Borealis’ sales while base chemicals and associated products generated approximately 28
per cent. of sales (source: Annual Report 2009).
Borealis’ most important geographic markets in terms of 2009 based on revenue contribution
were Europe (83 per cent. of revenues in 2009), the Middle East & Asia (8 per cent. of
revenues in 2009) and the United States (2 per cent. of revenues in 2009).
The following chart shows a breakdown of Borealis’ revenues in 2009.
2009 Net Sales by Geography: 4,714 MEUR
Middle East
and Asia
8%
NonAllocated
1%
Other
regions
7%
USA
2%
Non-EU
countries in
Europe
10%
2009 Net Sales by Segment: 4,714 MEUR
Base
Chemicals
28%
EU
countries
73%
Polyolef ins
71%
Source: Audited consolidated financial statements as of 31 December 2009 – Note 1 – Segment Reporting
Sales into the Middle East, India, China/Asia and Australia are handled through the Borouge
sales and markets joint venture, which is based in Singapore.
POLYOLEFINS
With an installed capacity of approximately 4,000 kilotons per annum, Borealis is the second
largest producer of polyolefins in Europe and a top ten producer globally. The chart below
1
shows Borealis’ polyolefin capacity in kilotons per annum in 2009 :
1
Includes the acquisition of Qattor in Brazil and Sunoco PP in the US by Braskem
62
World
0
2,000 4,000 6,000 8,000 10,000 12,000
Europe
LyondellBasell
LyondellBasell
Dow
Borealis
ExxonMobil
Ineos
SINOPEC
SABIC
SABIC
Dow
Braskem
Total
Ineos
Polimeri
Total
ExxonMobil
Borealis Borouge
Repsol
CNPC
TVK
0
1,000 2,000 3,000 4,000 5,000 6,000
Source: CMAI
The Issuer's ten largest polyolefin customers represented in aggregate less than 7 per cent.
of its total revenues in 2009. Borealis has exposure to both countercyclical end markets (e.g.
utilities, energy, health care and consumer) and non-discretionary (e.g. food packaging) and
the more cyclical sectors like automotive and construction.
BASE CHEMICALS
MELAMINE AND PLANT NUTRIENTS
Borealis is (relating to capacity) the number one producer of melamine in Europe and number
two globally. 75 per cent. of the world melamine demand is used in the wood working industry
for the production of laminates (laminate floorings, cabinets, kitchencountertops etc) and for
wood adhesives to produce different sort of boards (MDF boards, plywood, particleboards
etc). As a region, Europe is the largest melamine market accounting for 39 per cent. of the
world consumption in 2007 (source: CEH Market Research Report May 2008 (SRI
Consulting).
Fertilizer business relies significantly on logistics. The location of the production facilities in
Linz at the Danube provides a distribution channel up river to Germany and down river into
Eastern Europe, where the Issuer's market position is substantially based on its brand "Linzer
Ware".
PHENOL AND AROMATICS
Borealis is the only producer in the Nordic and Baltic regions and thus the leading phenol
producer in the region (source: CMAI). Phenol is a product which is costly to transport and as
such tends to be a regional business. Consequently, due to shipping costs, Borealis has a
market share in the region well in excess of competitors. Similarly, Borealis usually does not
ship its products further south than Rotterdam.
63
Management and supervisory board
The Issuer's management and supervisory bodies comprise the management board and the
supervisory board as foreseen by the Austrian Stock Corporation Act (Aktiengesetz).
MANAGEMENT BOARD
The management board of Borealis consists of the CEO, the CFO and such other executive
directors as appointed by the supervisory board. The appointment and the revocation of the
executive directors are effected by way of a resolution of the supervisory board. The Issuer is
represented by two members of the management board acting jointly or by one member of
the management board together with a holder of statutory signing authority (Prokurist).
The management board of the Issuer consists of the following five persons who can be
reached at the business address of the Issuer at Wagramerstraße 17-19, 1220 Vienna,
Austria.
Name
Responsibility
Appointed until
Mark Garrett
Chief executive officer
Daniel James Shook
Chief financial officer
31 May 2012
Herbert Willerth
Deputy chief executive; executive
vice president, operations
30 June 2011
Henry Sperle
Executive vice president, Middle
East and Asia
Lorenzo Delorenzi
Executive vice president,
polyolefins
31 December 2010
Gerd Löbbert
Executive vice president, base
chemicals
31 December 2014
30 March 2012
2 May 2010
Source: Extract from the Austrian Companies Register dated 31 March 2010 and information provided by the members of the
management board.
The table below indicates principal activities performed by the members of the management
board outside the Issuer:
Name
Mark Garrett
Principal activities outside the Issuer

Member of the board of directors of Nova
Chemicals, Corp

Vice chairman of the board of directors of
Abu Dhabi Polymers Company Limited
64
Name
Principal activities outside the Issuer

Chairman of the executive committee of
Tacaamol

Vice chairman of interim board of Tacaamol
Gerd Löbbert
None
Daniel James Shook
None
Herbert Willerth

Board member of The Federation of Austrian
Industries – Lower Austria

Member of the board of Abu Dhabi Polymers
Company Limited

President of GFKT Gesellschaft zur
Förderung von Kunststofftechnik
Henry Sperle
Member of the board of Abu Dhabi Polymers
Company Limited
Lorenzo Delorenzi

Board member of Borouge Pte

Executive board member of Plastics Europe
Source: Extract from the Austrian Companies Register dated 31 March 2010 and information provided by the members of the
management board
SUPERVISORY BOARD
The members of the supervisory board can be reached at Borealis' business address at
Wagramerstraße 17-19, A-1220 Vienna. The supervisory board comprises the following five
persons:
Name
Position
Principal activities outside
the Issuer
Appointed
as of
Khadem Al Qubaisi
Chairman
Managing director of IPIC
23
February
2010
Chairman of the board of
Aarbar Investments (PJSC)
National Central Cooling Co.
(Tabreed)
65
Name
Position
the Issuer
Appointed
as of
National Takaful Co. (Takaful)
Chairman of the board of IMedia Newspaper (Alrroya
Aleqtisadiya)
Hyundai Oilbank Co. Ltd.
(HDO)
Vice chairman of CEPSA
Board member of Emirates
Investment Authority
Board member of First Gulf
Bank
Gerhard Roiss
Vice Chairman
Executive board member
(Deputy CEO) of OMV
Aktiengesellschaft
20 June
2007
directors of Nova Chemicals
Corporation
Member of the supervisory
board of Österreichische Post
AG
board of AABAR Investments
PJSC
Vice Chairman of the
supervisory board of Petrom SA
Chairman of the supervisory
board of OMV Deutschland
Gmbh
Managing Director of OMV
Refining & Marketing GmbH
board of OMV Gas & Power
GmbH
board of OMV Exploration &
Production GmbH
Chairman of the supervisory
board (Verwaltungsrat) of OMV
66
Name
Position
the Issuer
Appointed
as of
Supply & Trading AG, Zug
Chairman of board of directors
of OMV Trading Service
Limited, London
Mohamed Al Khaja
Member
Deputy director of Research &
10
Business Development Division September
2009
Mohamed Al Mehairi
Member
Director of Investment Division,
IPIC
20 June
2007
David Charles Davies
Member
Executive board member and
chief financial officer of OMV
Aktiengesellschaft
20 June
2007
Member of board of directors of
Nova Chemicals Corporation
Source: According to information provided by the Issuer, the composition of the supervisory board of the Issuer changed as of 23
February 2010. Mr Khadem Al Qubaisi replaces Mr Mohamed Al-Azdi on 3 March 2010.
Each member of the supervisory board of the Issuer is appointed until the end of the
shareholders' meeting that resolves the discharge from liability for the fourth financial year
after the appointment of the respective member of the supervisory board of the Issuer.
Audit committee
The audit committee of the Issuer is appointed by the supervisory board and consists of three
supervisory board members.
The Borealis audit committee operates based on an audit committee charter approved by the
audit committee, which lines out the meeting practises and responsibilities of the audit
committee. The aim of the audit committee is to minimise financial, operational and
compliance risks, and enhance the quality of financial reporting. The audit committee
monitors:
-
The financial reporting process;
-
the effectiveness of the Issuer's internal control, internal audit, and risk management
systems;
-
the statutory audit of the annual and consolidated accounts; and
-
the independence of the statutory auditor or audit firm and the provision of additional
services.
Further, the audit committee reviews together with the statutory auditor key matters arising
from the statutory audit and any material weaknesses in internal control in relation to the
financial reporting process.
67
The audit committee consists of the following persons:
Name
Position
Mohamed Al Khaja
Chairman
David Davies
Vice-Chairman
Mohamed Al Mehairi
Member
Source: Minutes of meetings of the supervisory board dated 26 February 2008 and 29 September 2009 and information provided by
the Issuer
Save than as disclosed in this Prospectus, there are no potential conflicts of interests
between any duties to the Issuer of the members of the administrative, management, and
supervisory bodies and their private interests and/or other duties.
68
Selected financial information of the Issuer
The financial data provided below has been derived from the Issuer's audited consolidated
financial statements for the business years ended 31 December 2008 and 31 December
2009, which were prepared in accordance with IFRS.
Key figures in EUR million
(rounded)
Financial year 2009
Financial year 2008
4,714
6,697
38
239
EBITDA
260
426
Gearing
43%
47%
4,816
4,828
Net Sales
Net profit of the year
Total Assets
RECENT EVENTS
Since 31 December 2009, there are no recent events particular to the Issuer which are
relevant to a material extent to the evaluation of the Issuer’s solvency.
PROFIT FORECASTS OR ESTIMATES
The Issuer does not provide any profit forecasts or estimates in connection with the Offering.
SIGNIFICANT CHANGES AND MATERIAL ADVERSE CHANGES
Save as described in this Prospectus, there has been no significant change in the financial or
trading position of the Issuer or the Borealis Group since 31 December 2009 and no material
adverse changes in the Issuer's prospects since 31 December 2009.
INTERESTS OF NATURAL AND LEGAL PERSONS INVOLVED IN THE
OFFERING
No natural and legal person involved in the Offering has an interest (including conflicting
interest) that is material to the Offering.
69
Taxation
AUSTRIA
This following paragraph on Austrian Taxation contains a brief summary with regard to certain
important principles which are of significance in Austria in connection with 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 individual potential investors. It is based
on the currently valid Austrian 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 also be effected with retroactive effect and may negatively impact on
the tax consequences described above. 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.
Individuals having a 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 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.
In general, the Bonds should 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 holding the Bonds as a non-business asset
(Privatvermögen) are subject to income tax on all resulting interest payments pursuant to
secs. 27(1)(4) and 27(2)(2) of the Austrian Income Tax Act. Such interest payments are
subject to a withholding tax of 25.0 per cent. in case they are paid out by an Austrian paying
agent (kuponauszahlende Stelle). This withholding tax has the effect of final taxation in the
case of a public offer of the Bonds (i.e. no additional income tax is levied over and above the
amount of tax withheld). Even if interest payments are not effected through an Austrian
paying agent, a flat income tax rate of 25.0 per cent. applies in the case of a public offer of the
Bonds. Since in this case no withholding tax is levied, interest payments must be included in
the income tax return.
Individuals subject to unlimited income tax liability holding the Bonds as a business asset
(Betriebsvermögen) are subject to income tax on all resulting interest payments. Such interest
payments are subject to a withholding tax of 25.0 per cent. in case they are paid out by an
Austrian paying agent, this withholding tax having the effect of final taxation in the case of a
public offer of the Bonds (i.e. no additional income tax is levied over and above the amount of
tax withheld). Even if interest payments are not effected through an Austrian paying agent, a
flat income tax rate of 25.0 per cent. applies in the case of a public offer of the Bonds. Again,
such income has to be included in the income tax return.
70
Corporations subject to unlimited corporate income tax liability are subject to corporate
income tax on all interest payments resulting from the Bonds at a rate of currently 25.0 per
cent. Under the conditions set forth in sec. 94(5) of the Austrian Income Tax Act, no
withholding tax is levied.
Private foundations 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 the Bonds as a non-business asset are subject to
corporate income tax on all interest payments received pursuant to sec. 13(3)(1) of the
Austrian Corporate Income Tax Act at a rate of 12.5 per cent. in the case of a public offer of
the Bonds. 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 the Bonds are subject to
income tax at a rate of 25.0 per cent. on all resulting interest payments 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 25.0 per cent. If interest received by nonresident 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.
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 State are subject to a withholding tax if no exception from such withholding
applies. Currently, the withholding tax amounts to 20.0 per cent. As of 1 July 2011 it will be
increased to 35.0 per cent.
LUXEMBOURG
General
The following information is of a general nature only and is based on the laws in force in
Luxembourg as of the date of this Prospectus. It does not purport to be a comprehensive
description of all tax implications that might be relevant to an investment decision. It is
included herein solely for preliminary information purposes. It is not intended to be, nor should
it be construed to be, legal or tax advice. Prospective investors in the Bonds should consult
their professional advisers with respect to particular circumstances, the effects of state, local
or foreign laws to which they may be subject and as to their tax position.
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 in Luxembourg for tax purposes.
Individual taxpayers are generally subject to personal income tax and the solidarity surcharge.
Under certain circumstances, where an individual taxpayer acts in the course of the
71
management of a professional or business undertaking, municipal business tax may apply as
well.
Withholding taxation of the holders of Bonds
Non-residents
Under the Luxembourg tax laws currently in force and subject to the application of the
Luxembourg laws dated 21 June 2005 ("Laws") implementing the EU Savings Directive and
ratifying several agreements concluded between Luxembourg and certain dependant and
associated territories of European Union Member States, there is no withholding tax on
payments of interest (including accrued but unpaid interest) made to a Luxembourg nonresident 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 EU
Savings 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, for the benefit of) an individual or a residual entity ("Residual Entity") in the
sense of article 4.2. of the EU Savings 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 recognised in accordance with the
UCITS Directive, 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 Entities resident or established in
any of the following territories: Aruba, British Virgin Islands, Guernsey, Isle of Man, Jersey,
Montserrat and the Netherlands Antilles.
Where withholding tax is applied, it is currently levied at a rate of 20 per cent. and will be
levied at a rate of 35 per cent. as of 1 July 2011. Responsibility for the withholding of the tax
will be assumed by the Luxembourg paying agent. Payments of interest under the Bonds
coming within the scope of the Laws would at present be subject to withholding tax of 20 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.
Residents
Under Luxembourg general tax laws currently in force and subject to the law of 23 December
2005 (the Law) mentioned below, there is no withholding tax on payments of principal,
premium or interest made to Luxembourg resident Bondholders, nor on accrued but unpaid
interest in respect of Bonds, nor is any Luxembourg withholding tax payable upon redemption
or repurchase of Bonds held by Luxembourg resident Bondholders.
Under the Law, payments of interest or similar income made or ascribed by a paying agent
established in Luxembourg to or for the benefit of an individual beneficial owner who is
resident of Luxembourg will be subject to a withholding tax of 10 per cent.
Such withholding tax will be in full discharge of income tax if the beneficial owner is an
individual acting in the course of the management of his/her private wealth. Responsibility for
the withholding of the tax will be assumed by the Luxembourg paying agent. Payments of
interest under the Bonds coming within the scope of the Law would be subject to withholding
tax of 10 per cent..
On 15 September 2008 the European Commission issued a report to the Council of the
European Union on the operation of the EU Savings Directive, which included the
Commission's advice on the need for changes to the EU Savings Directive. On 13 November
2008 the European Commission published a more detailed proposal for amendments to the
EU Savings Directive, which included a number of suggested changes. The European
72
Parliament approved an amended version of this proposal on 24 April 2009. If any of the
proposed changes are made in relation to the EU Savings Directive, they may amend or
broaden the scope of the requirements described above.
73
Subscription and sale
The Bonds bear a coupon at a rate per annum which will be fixed in accordance with a book
building procedure involving institutional investors on or around 22 April 2010. The
subscription period is expected to be after the approval of the Prospectus from 26 April 2010
(including) to 28 April 2010 (including). The subscription period may be shortened or
extended at the discretion of the Issuer. The Bonds will be offered to private and institutional
investors in Austria and Luxembourg, and under reliance on exemptions from the prospectus
requirement to institutional investors outside of Austria and Luxembourg.
Pursuant to a subscription agreement (Übernahmevertrag) to be entered into on or about 23
April 2010 (the "Subscription Agreement") between the Issuer and the Joint Lead
Managers, the Joint Lead Managers will agree, subject to certain conditions, to subscribe for
an aggregate principal amount of the Bonds of up to EUR 200,000,000. The management
commission will be 0.375 per cent. of the aggregate principal amount.
The Issuer has agreed to reimburse the Joint Lead Managers and the other syndicated banks
for certain expenses incurred in connection with the issue of the Bonds. The total expenses of
the Offering (including the management commission and ancillary expenses, e.g. costs for
marketing, legal advice and listing) are estimated to be not more than 0.6 % of the aggregate
principal amount of the Bonds. The net total proceeds of the Offering will amount to the
aggregate principal amount of the Bonds issued, multiplied by the Issue Price (as defined
below), less the total expenses of the Offering.
The allocation of the Bonds will happen in the order of the subscription applications. The
banks and intermediaries selling the Bonds have the right to shorten or cancel the
subscription applications and/or asymmetrically allocate Bonds to subscribers. The Issuer and
the Joint Lead Managers reserve the right to shorten or extend the subscription period. The
Bonds will be delivered to applicants (by credit to their depositaries) which pay the required
subscription amount for the Bonds on the Issue Date to the account specified in the
subscription application. Applicants will not pay any excess amounts.
The minimum subscription amount corresponds to the minimum denomination of the Bonds
which is EUR 1,000. No maximum subscription amount has been set.
The issue price (the "Issue Price") is expected to be between 98 per cent. and 102 per cent.
of the principal amount. The Issue Price and the interest rate will be determined and
published following a book building procedure involving institutional investors and will be
published in accordance with article 10 of the Luxembourg Law on Prospectuses dated 10
July 2005. The selling commission for private investors will be 1.5 per cent. and will be borne
by private investors. The syndicated banks are entitled to charge customary premiums to
customers.
The book building procedure serves the purpose of recording the demand of institutional
investors, like financial institutions, insurance companies and funds, by the Joint Lead
Managers. In the course of the book building procedure, the Joint Lead Managers will accept
within a limited period of time binding book building orders from institutional investors. The
Issuer and the Joint Lead Managers will decide upon the allocation of the Bonds to
institutional investors. Subsequently, the Joint Lead Managers determine in consultation with
the Issuer the Issue Price at which the Bonds are issued as well as the interest rate
applicable to the Bonds.
The Bonds will be represented in whole by a changeable global bearer note (veränderbare
Sammelurkunde) pursuant to § 24 lit b of the Austrian Depository Act (Depotgesetz) (as
amended) which bears the signatures of authorised representatives of the Issuer.
The global bond representing the Bonds will be deposited with the Oesterreichische
Kontrollbank Aktiengesellschaft, Am Hof 4, 1010 Vienna, Austria, in its function as Central
74
Securities Depository. The Bondholders are entitled to joint ownership interests in the global
bond representing the Bonds in accordance with Austrian law.
The results of the Offering will amount to the aggregate principal amount of the Bonds issued
on the Issue Date multiplied by the Issue Price and will be included in a notification which will
be filed with the CSSF and published on the website of the Luxembourg Stock Exchange.
Subscribers of the Bonds will be informed about the number of Bonds allocated to them by
credit to their depositaries. Definitive bonds and interest coupons will not be issued.
Pre-emption- and subscription rights do not exist. Currently, no entities with a firm
commitment to act as intermediaries in secondary trading have been appointed.
75
Selling restrictions
GENERAL
In addition to the selling restrictions below, the distribution of this Prospectus and the offer of
the Bonds in certain jurisdictions may be restricted by law, and therefore persons into whose
possession this Prospectus comes should inform themselves about and observe any such
restrictions, including those in the paragraphs that follow. Any failure to comply with these
restrictions may constitute a violation of the securities laws of any such jurisdictions.
EUROPEAN ECONOMIC AREA
In relation to each Member State of the European Economic Area 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 Bonds to the public in that Relevant Member State prior to
the 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, except that it may, with effect
from and including the Relevant Implementation Date, make an offer of Bonds to the public in
that Relevant Member State at any time:
(a)
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;
(b)
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 EUR 43,000,000 and
(3) an annual net turnover of more than EUR 50,000,000, as shown in its last annual or
consolidated accounts; or
(c)
in any other circumstances which do not require the publication by the Issuer of a
prospectus pursuant to Article 3 of the Prospectus Directive.
For the purposes of this provision, the expression an “offer of Bonds to the public” in relation
to any 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.
NOTICE TO INVESTORS IN CANADA
This Prospectus is not, and under no circumstances is to be construed as, a prospectus, an
advertisement or a public offering of the Bonds described herein in any province or territory of
Canada. No securities commission or similar authority in Canada has reviewed or in any way
passed upon this document or the merits of the Bonds described herein, and any
representation to the contrary is an offence.
76
NOTICE TO INVESTORS IN JAPAN
The Bonds have not been and will not be registered under the Securities and Exchange Law
of Japan (the "Securities and Exchange Law"). The Issuer has not offered or sold and will
not offer or sell any Bonds, directly or indirectly, in Japan or to, or for the benefit of, any
resident of Japan (which term as used herein means any person resident in Japan, including
any corporation or other entity organised under the laws of Japan) or to others for re-offering
or resale, directly or indirectly, in Japan or to a resident of Japan, except pursuant to an
exemption from the registration requirements of, and otherwise in compliance with, the
Securities and Exchange Law and any other applicable laws, regulations and ministerial
guidelines of Japan.
NOTICE TO INVESTORS IN THE UNITED KINGDOM OF GREAT BRITAIN
AND NORTHERN IRELAND
Each Manager has represented and agreed that:

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 FSMA by the Issuer:

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 (1) 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; and

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.
NOTICE TO INVESTORS IN THE UNITED STATES OF AMERICA AND ITS
TERRITORIES
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 of America or to, or for the account and benefit of, U.
S. persons except in accordance with Regulation S under the Securities Act. Each Manager
has represented and agreed that it has offered and sold the Bonds, and will offer and sell the
Bonds (i) as part of its distribution at any time and (ii) otherwise until 40 days after the
completion of the distribution of all the Bonds only in accordance with Rule 903 of the
Regulation S under the Securities Act. Neither the Manager, its affiliates nor any persons
acting on its or their behalf have engaged or will engage in any directed selling efforts with
respect to the Bonds, and it and they have complied and will comply with the offering
restrictions requirements of Regulation S under the Securities Act. Each Manager has also
agreed that at or prior to confirmation of sale of Bonds, it will have sent to each distributor,
dealer, or person receiving a selling concession, fee or other remuneration that purchases
Bonds from it during the restricted period a confirmation or notice to substantially the following
effect:
77
"The Bonds covered hereby have not been registered under the U. S. Securities Act of 1933,
as amended (the Securities Act) and may not be offered or sold within the United States of
America or to, or for the account or benefit of, U. S. persons (i) as part of their distribution at
any time or (ii) otherwise until 40 days after the completion of the distribution of the Bonds as
determined and certified by each Manager, except in either case in accordance with
Regulation S under the Securities Act. Terms used above have the meaning given to them in
Regulation S under the Securities Act."
Terms used in the preceding paragraphs have the meaning given to them in Regulation S
under the Securities Act.
78
GENERAL INFORMATION
LISTING AND ADMISSION TO TRADING
The Issuer has applied for admission to listing of the Bonds on the Second Regulated Market
(Geregelter Freiverkehr) of the Vienna Stock Exchange. Although the Issuer expects to be
granted admission to listing for the Bonds, the Issuer cannot guarantee that such admission
will indeed be granted. The first day of listing for the Bonds is expected to be on or about 29
April 2010. There are no other listings of securities of the Issuer.
STATUTORY AUDITORS
The German language audited consolidated financial statements incorporated in an English
translation version by reference hereto have been audited by KPMG Wirtschaftsprüfungs- und
Steuerberatungs GmbH, Porzellangasse 51,1090 Vienna, Austria (Telephone: +43 (1) 313
32-0) ("KPMG"), as indicated in the audit opinion with respect thereto. KPMG has rendered
unqualified audit reports on the consolidated financial statements of the Issuer for the years
ended 31 December 2008 and 31 December 2009 on 24 February 2009 and 17 February
2010. KPMG is a member of the Austrian Chamber of Chartered Accountants (Kammer der
Wirtschaftstreuhänder Österreich, with its address at Schönbrunnerstraße 222-228, 1120
Vienna, Austria). No auditors have resigned, been removed or not been re-appointed during
the period covered by the historical financial information.
AUTHORISATION
The Issuer has obtained all necessary consents, approvals and authorisations in Austria in
connection with the issue of the Bonds. The Bonds will be issued in accordance with a
resolution of the supervisory board of the Issuer passed on 1 July 2009.
CLEARING AND SETTLEMENT
The Bonds are intended to be delivered to and deposited with Oesterreichische Kontrollbank
Aktiengesellschaft, Am Hof 4, 1010 Vienna, Austria, to be cleared by either Euroclear Bank
S.A./N.V., 1. Boulevard du Roi Albert II, 1210 Brussels, Belgium, or Clearstream Banking
société anonyme, Luxembourg, 42 Avenue JF Kennedy, 1855 Luxembourg, Luxembourg.
RATINGS
Neither the Issuer nor the Bonds are rated.
YIELD
The yield of the Bonds will be published as soon as it has been determined in accordance
with article 10 of the Luxembourg Law on Prospectuses dated 10 July 2005.
REPRESENTATION OF BONDHOLDERS
The Terms and Conditions of the Bonds contain no provisions on the representation of the
Bondholders. In certain cases, a joint representative (Kurator) may be appointed to represent
79
the Bondholders before the Austrian courts in accordance with the Austrian Curator Act
(Kuratorengesetz) (e.g. if rights of the bondholders are likely to be affected due to a lack of
common representation).
DOCUMENTS ON DISPLAY
During the validity of this Prospectus, copies of this Prospectus, any supplement thereto, if
any, and any document incorporated by reference into this Prospectus, will be published by
making them available to the public in printed form, free of charge, at the registered office of
the Issuer, Wagramerstraße 17-19, 1220 Vienna, Austria, and in electronic form on the
website of the Luxembourg Stock Exchange under "www.bourse.lu".
The Issuer's articles of association can be inspected at the registered office of the Issuer,
Wagramerstraße 17-19, 1220 Vienna, Austria, during usual business hours.
OTHER
This Prospectus includes neither a statement nor a report from a third party as an expert.
80
GLOSSARY AND LIST OF ABBREVIATIONS AND
DEFINITIONS
For ease of reference, the glossary below sets out certain abbreviations and meanings of
certain technical terms used in the Prospectus. Readers of the Prospectus should always
have regard to the full description of a term contained in the Prospectus.
Acetone
Acetone is a colourless, flammable liquid with a melting point of
−95.4 °C and boiling point of 56.53 °C. It has a relative density of
0.819 (at 0 °C). It is readily soluble in water, ethanol, ether, etc., and
serves as an important solvent but has also other major uses like
acrylics.
AMI
AMI Agrolinz Melamine International GmbH
Base Chemicals
Base Chemicals is a business group in Borealis which comprises
feedstocks and olefins, phenol and aromatics, melamine and plant
nutrients.
Borouge
A joint venture between the Abu Dhabi National Oil Company and
the Issuer. It was established in 1998 and employs approximately
1,400 people, has customers in 50 countries and its headquarters
are in Abu Dhabi, UAE and Singapore. Borouge is a provider of
plastics solutions.
Borstar®
Borealis' proprietary polymerisation technology for the manufacture
of LLDPE/HDPE and PP. A central feature is the combination of
bulk loop and gas phase reactors.
Butadiene
Butadiene is a colourless gaseous hydrocarbon which can have two
forms: 1,2 butadiene and 1,3 butadiene. The latter is used in the
manufacture of synthetic rubber, latex paints and synthetic rubber.
CD
Compact disc
CMAI
Chemical Markets Associates, Inc
Cracker
Petrochemical unit for converting naphtha (raw-oil distillate fraction)
into lower boiling liquid hydrocarbons as well as polymerisation
monomers (ethylene, propylene)
CSSF
Luxembourg
Financial
Sector
Supervisory
(Commission de Surveillance du Secteur Financier)
Cumene
A common name for isopropylbenzene, an organic compound that
is an aromatic hydrocarbon. It is a combustible colourless liquid that
has a boiling point of 152 °C. Nearly all the cumene is used to
produce phenol and acetone.
DVD
Digital Versatile Disc
EIB
European Investment Bank
EUR
Euro
HDPE
High density polyethylene. Coming from a low pressure process
Commission
81
based on special catalysts (Ti- or Cr-based), HDPE has a linear
polymeric chain, combined with a higher density and melting point.
To fit special applications, the molar mass distribution can be
adjusted in a wide range by means of catalysts or polymerisation
technology. New applications are opened for HDPE as well as other
low pressure PEs by applying metallocene (single-site) catalysts,
which allow the production of very narrow molar mass distributions
and the better distribution of comonomers.
IFRS
International Financial Reporting Standards as adopted by the
European Union
IPIC
International Petroleum Investment Company of Abu Dhabi
LDPE
Low-density polyethylene. A product from a high-pressure
polymerisation process, LDPE is characterised by its highly
branched chain structure. As a result of this, density and crystallinity
are reduced while the processability in a variety of conversion
technologies is greatly facilitated. The addition of special
comonomers can further expand the property range of these
grades.
Melamine
Melamine is primarily used to produce melamine resin, which when
combined with formaldehyde produces a very durable, thermoset
plastic. This plastic is often used in kitchen utensils, plates or
laminates.
multimodal
Multimodal polymer includes more than one molecular weight
fraction.
Naphtha
In a refinery, oil and gas is separated into different products
(fractions) by distillation, mainly into transport fuels. Naphtha, the
light fraction from oil, is the major petrochemical feedstock for the
downstream creation of polymers.
OeKB
Oesterreichische Kontrollbank Aktiengesellschaft
Olefin
Olefin is mono-unsaturated
propylene.
PE
Polyethylene. Polyethylenes (or polythenes) are thermoplastic
polymers consisting mainly of ethylene (C2H4), which are divided
according to their density, melting point and molecular structure.
Phenol
Phenol is a white crystalline. It is solid at room temperature and
typically has a sweet odour. It is a toxic aromatic compound with a
chemical formula C6H5OH. It can be stored and transported in liquid
form at the temperature of about 55 °C. The crystallisation point is
41 °C.
Polyolefin
Polyolefin is a type of polymer built up from olefinic monomers.
PP
Polypropylene. Polypropylenes are thermoplastic polymers
consisting mainly of propylene (C3H6), come from a low pressure
process based on catalysts and have generally a linear polymer
chain.
Pygas
Pygas is the common expression for ‘pyrolysis gasoline’. It is a
hydrocarbon
like
ethylene
and
82
naphtha-range product and produced as a by-product in ethylene
plants when naphtha is used as feedstock.
R&D
Research and development
Sirius
The Sirius catalyst is a technology producing the catalyst in a liquid
phase without any external carrier resulting in pure products but
above all unlimited flexibility in catalyst preparation.
UAE
United Arab Emirates
U.S.
United States of America
W&C
wire and cable
83
ISSUER
Borealis AG
Wagramerstraße 17-19
1220 Vienna
Austria
JOINT LEAD MANAGERS
Erste Group Bank AG
Schottengasse 6
Graben 21
A-1010 Vienna
1010 Vienna
Austria
Austria
PAYING AGENT
Erste Group Bank AG
Graben 21
1010 Vienna
Austria
COUNSEL TO THE JOINT LEAD MANAGERS
WOLF THEISS
Rechtsanwälte GmbH
Schubertring 6
1010 Vienna
Austria
AUDITOR
KPMG
Wirtschaftsprüfungs- und
Steuerberatungs GmbH
Porzellangasse 51
1090 Vienna
Austria
84

Bond Prospectus 10-17

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