28.11.2023

The Kingdom of Belgium - State Notes

Annual coupon
Kingdom of Belgium: high-grade issuer (Moody's Aa3 / S&P AA rating)
Term to maturity of 1 and 3 years

From 22 February 2024 through 1 March 2024 (3.30 p.m.), unless the subscription period is closed early, you can subscribe to the new State Notes issued by the Kingdom of Belgium (the "Issuer").

Term sheet State Notes 1 year

Term sheet State Notes 3 years

Main features

ISIN code	1 year BE3871294240 3 years BE3871295254
Issue Date	4 March 2024
Maturity Date	1 year: 4 March 2025 3 years: 4 March 2028
Payment date	4 March 2024
Issue price	100.00%, i.e. 100 EUR per denomination.
Amount repaid at the Maturity Date	100%, except in the event of bankruptcy or risk of bankruptcy of the issuer.
Yield 1 year:	Yearly coupon of 3,00% (gross) per denomination, i.e. EUR 3,00 (gross) per denomination yearly payable, at the maturity date1. Gross yield of 3,00% based on an issue price of 100.00% and going from a reimbursement of 100.00% at the maturity date. This means a net yield of 2,10% after reduction of the withholding tax of xx%.
Yield 8 years	Yearly coupon of 2,50% (gross) per denomination, i.e. EUR 2,50 (gross) per denomination yearly payable, on 4 march starting on 4 march 2025 until and including the maturity date1. Gross yield of 2,50% based on an issue price of 100.00% and going from a reimbursement of 100.00% at the maturity date. This means a net yield of 1,75% , i.e. EUR 1,75 (gross) per denomination ( after reduction of the withholding tax of 30,00%.
Withholding tax	The income resulting from the State Notes, which is collected in Belgium, is subject to withholding tax of 30,00% on the gross amount. The withholding tax constitutes the final tax for Belgian individuals, which means that any income from the bonds would not have to be declared in the annual tax return. The above mentioned taxation applies to the average non-professional client-physical person residing in Belgium. The tax treatment depends on your individual circumstances and may change in the future.
Taxes on stock market transactions	On the basis of the current tax legislation the rate of the tax on stock market transactions (TOB) when selling before maturity date is equal to 0.12% (with a maximum of EUR 1.300).
Publication of the product's value	Investors can check the price of the Notes in their custody account or request it at any KBC branch.
Governing law	The State Notes are governed by Belgian law
Issuer rating	Moody’s Aa3 (stable outlook) Standard & Poors AA (stable outlook) These ratings are indicative and do not constitute a recommendation to buy, sell or hold the Notes issued by the Issuer.
Most important risks	Credit risk: Repayment and interest payments depend on the solvency of Issuer. It is believed that the Kingdom of Belgium currently has ample financial resources to comply with the financial commitments entered into. Liquidity risk: The secondary market for this issue depends on the general liquidity of the international financial markets. There is no guarantee whatsoever that an active market will develop for the trading of the State Notes. Risk of fluctuations of the price of the product (Market risk): The market price of the State Notes can fluctuate due to various factors such as the rating of the Issuer and interest rate movements. Investors seeking to sell their State Notes before maturity will have to sell them at the market price. This could result in a capital gain or loss being made on the nominal value of the State Notes. Risk of inflation: If the economic environment of high inflation were to persist in the coming year, as is currently the case, real returns could be negative.
Charges	Trading fee: When selling the bonds for the maturity date, a trading fee of up to 0,85% (with a minimum of EUR 25) will be due. Distribution fee: 1 year: KBC Bank receives from the Belgian State a fee of 0,10% on its subscribed amount and a variable fee that shall not exceed 0.20% of the subscribed amount. 3 years: KBC Bank receives from the Belgian State a fee of 0,75% on its subscribed amount and a variable fee that shall not exceed 0.20% of the subscribed amount. Schedule of rates and charges: All rates and charges applying at KBC Bank NV can be found at Investments - KBC Banking & Insurance
Listing	The State Notes will be listed on NYSE Euronext Brussels and the possibility of trading the State Notes on the regulated market of NYSE Euronext Brussels will be requested (www.euronext.com).

This product (the ‘State Note’) is a debt instrument intended for investors who have the necessary knowledge and experience to assess the benefits and risks of an investment in this type of product, based on their financial situation, to estimate the advantages and risks of an investment in this type of instrument (more in particular, investors who are familiar with interest rates).

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More information with regard to complaints can be found on: https://www.kbc.be/retail/en/contact/suggestions-or-complaints.html