Borealis AG Public Offering of up to EUR 200000000 Senior Fixed ...

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 Notes 2012-2019
Borealis AG ("Borealis" or the "Issuer") intends to issue up to EUR 200,000,000 senior fixed rate Notes with a denomination of EUR 1,000
each (the "Notes") on 2 July 2012 (the "Issue Date") and to offer the Notes between 25 June 2012 and 27 June 2012 to the public in Austria
and Luxembourg (the "Offering"). The Issuer and the Joint-Lead Managers may shorten or extend the subscription period at their own
discretion. This prospectus (the "Prospectus") relates to the Offering. The issue price of the Notes is not fixed yet and will be in a range
between 98% and 102% of their nominal amount.
The interest period of the Notes begins on the Issue Date (including). The Notes 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 20 and 21 June 2012 (see "Subscription and Sale").
Accrued interest is payable each year in arrear on 2 July, starting on 2 July 2013. The Notes will be redeemed on 2 July 2019 to the extent they
have not previously been redeemed or purchased.
The Notes 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 will be made to the Vienna Stock Exchange for the Notes to be admitted to the Second Regulated Market (Geregelter Freiverkehr).
The Notes are governed by Austrian law.
The 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 dated 10 July 2005 on prospectuses for securities (loi relative
aux prospectus pour valeurs mobilières) (the "Luxembourg Act") for the approval of this Prospectus. According to article 7.7 of the
Luxembourg Law on prospectuses for securities the CSSF assumes no responsibility as to the economic and financial soundness of the
transaction and the quality or solvency of the Issuer.
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 Notes 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 Notes as any evaluation of the suitability for an investor of an investment in the Notes 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 Notes in any jurisdiction where such offer or solicitation
is unlawful. In particular, the Notes 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.
ISIN: AT0000A0VL70
Prospectus dated 14 June 2012
JOINT-LEAD MANAGERS
Erste Group Bank AG 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 Notes offered hereby and does not constitute an offer to sell or a solicitation of an offer
to buy any Notes 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" or the
"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 Notes 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 Notes 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 Notes. 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 Notes 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 Notes, issued by Borealis and for
the admission to listing of the Notes 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 Notes 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
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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.
The most recent financial information contained in this Prospectus are the internal unaudited
consolidated Q1 figures from the Issuer.
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...................................................................................................................7
FORWARD-LOOKING STATEMENTS ....................................................................................... 7
DOCUMENTS INCORPORATED BY REFERENCE ................................................................ 7
SUPPLEMENT TO THE PROSPECTUS ................................................................................... 8
SOURCES OF INFORMATION ................................................................................................... 9
SUMMARY OF THE PROSPECTUS ................................................................................................ 10
1. THE BOREALIS GROUP ......................................................................................................10
2. SUMMARY OF THE OFFERING .........................................................................................10
3. SUMMARY OF RISK FACTORS .........................................................................................17
4. SELECTED FINANCIAL INFORMATION OF THE ISSUER ...........................................20
GERMAN TRANSLATION OF SUMMARY ...................................................................................... 21
1. DIE BOREALIS GRUPPE .....................................................................................................21
2. ZUSAMMENFASSUNG DES ANGEBOTS ........................................................................22
3. ZUSAMMENFASSUNG DER RISIKOFAKTOREN...........................................................29
4. AUSGEWÄHLTE FINANZINFORMATIONEN DER EMITTENTIN .................................32
RISK FACTORS ................................................................................................................................... 34
1. RISKS REGARDING THE ISSUER, THE GROUP AND ITS BUSINESS ACTIVITIES
..................................................................................................................................................34
2. RISKS REGARDING THE NOTES .....................................................................................40
TERMS AND CONDITIONS OF THE NOTES................................................................................. 47
USE OF PROCEEDS .......................................................................................................................... 64
BOREALIS AG ...................................................................................................................................... 65
1. GENERAL ...............................................................................................................................65
2. HISTORY AND DEVELOPMENT ........................................................................................65
2. CORPORATE PURPOSE ....................................................................................................67
3. SHARE CAPITAL ...................................................................................................................67
4. CORPORATE GOVERNANCE ............................................................................................67
5. SHAREHOLDERS .................................................................................................................67
6. DEPENDENCY WITHIN THE GROUP ...............................................................................69
7. ORGANISATIONAL STRUCTURE .....................................................................................69
8. LEGAL PROCEEDINGS .......................................................................................................74
9. INVESTMENTS ......................................................................................................................74
10. MATERIAL CONTRACTS ....................................................................................................74
BUSINESS OVERVIEW ...................................................................................................................... 75
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1. GENERAL ...............................................................................................................................75
2. MAIN ACTIVITY .....................................................................................................................75
3. NEW PRODUCTS AND ACTIVITIES .................................................................................77
MARKETS AND SECTOR ENVIRONMENT .................................................................................... 78
1. GENERAL ...............................................................................................................................78
2. POLYOLEFINS.......................................................................................................................78
3. BASE CHEMICALS ...............................................................................................................79
MANAGEMENT AND SUPERVISORY BOARD ............................................................................. 80
1. MANAGEMENT BOARD ......................................................................................................80
2. SUPERVISORY BOARD ......................................................................................................81
3. ADMINISTRATIVE, MANAGEMENT, AND SUPERVISORY BODIES CONFLICTS OF
INTERESTS ............................................................................................................................84
SELECTED FINANCIAL INFORMATION ......................................................................................... 85
1.1 KEY FIGURES .......................................................................................................................85
1.2 RECENT EVENTS .................................................................................................................85
1.3 PROFIT FORECASTS OR ESTIMATES ............................................................................85
1.4 SIGNIFICANT CHANGES, MATERIAL ADVERSE CHANGES, TRENDS ...................86
TAXATION............................................................................................................................................. 87
1. AUSTRIA .................................................................................................................................87
2. LUXEMBOURG ......................................................................................................................90
SUBSCRIPTION AND SALE .............................................................................................................. 92
1. SUBSCRIPTION PERIOD ....................................................................................................92
2. ISSUE PRICE AND ITS DETERMINATION ......................................................................92
3. CONDITIONS TO WHICH THE OFFER IS SUBJECT ....................................................92
4. AGGREGATE NOMINAL AMOUNT OF THE OFFER .....................................................92
5. SALE TO RETAIL INVESTORS ..........................................................................................93
6. MINIMUM AND MAXIMUM SUBSCRIPTION AMOUNT .................................................93
7. FORM, CENTRAL SECURITIES DEPOSITARY ..............................................................93
8. PLACEMENT AND UNDERWRITING ................................................................................93
9. PUBLICATION OF INFORMATION WHICH IS RELEVANT FOR THE OFFER ..........93
10. DELIVERY OF NOTES .........................................................................................................94
SELLING RESTRICTIONS ................................................................................................................. 95
1. GENERAL ...............................................................................................................................95
2. EUROPEAN ECONOMIC AREA .........................................................................................95
3. NOTICE TO INVESTORS IN CANADA ..............................................................................96
4. NOTICE TO INVESTORS IN JAPAN .................................................................................96
5. NOTICE TO INVESTORS IN THE UNITED KINGDOM OF GREAT BRITAIN AND
NORTHERN IRELAND .........................................................................................................96
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6. NOTICE TO INVESTORS IN THE UNITED STATES OF AMERICA AND ITS
TERRITORIES .......................................................................................................................97
GENERAL INFORMATION................................................................................................................. 98
1. LISTING AND ADMISSION TO TRADING ........................................................................98
2. STATUTORY AUDITORS ....................................................................................................98
3. AUTHORISATION .................................................................................................................98
4. CLEARING AND SETTLEMENT .........................................................................................98
5. RATINGS ................................................................................................................................98
6. YIELD .......................................................................................................................................98
7. REPRESENTATION OF NOTEHOLDERS ........................................................................98
8. DOCUMENTS ON DISPLAY ................................................................................................99
9. OTHER ....................................................................................................................................99
10. INTEREST OF NATURAL AND LEGAL PERSONS INVOLVED IN THE
ISSUE/OFFER ........................................................................................................................99
GLOSSARY AND LIST OF ABBREVIATIONS AND DEFINITIONS .......................................... 100
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FORWARD-LOOKING STATEMENTS
GENERAL INFORMATION
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 Issuer's 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. Forwardlooking
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
Page reference
in the relevant
financial report
Annual Report 2010 containing the English translation of the
audited consolidated financial statements for the year 2010
English translation of the report of the auditors 58-59
English translation of the consolidated income statement 62
English translation of the consolidated statement of comprehensive
income
63
English translation of the consolidated balance sheet 64-65
English translation of the consolidated statement of changes in 66
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Page reference
Document / Heading
in the relevant
financial report
equity
English translation of the consolidated cash flow 67
English translation of the notes 68-110
Annual Report 2011 containing the English translation of the
audited consolidated financial statements for the year 2011
English translation of the report of the auditors 62-63
English translation of the consolidated income statement 66
English translation of the consolidated statement of comprehensive
income
67
English translation of the consolidated balance sheet 68-69
English translation of the consolidated statement of changes in
equity
70
English translation of the consolidated cash flow 71
English translation of the notes 72-114
For the avoidance of doubt, such parts of the annual report of the Issuers for the financial years 2010
and 2011, 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 Notes 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, to prepare a supplement to this Prospectus and supply to the CSSF such
number of copies of such supplement and publish such supplement as may be requested and relevant
applicable legislation requires 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 Notes and which arises or is noted between the time when
the Prospectus is approved and the final closing of the Notes to the public or, as the case may be, the
time when trading on a regulated market begins.
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SOURCES OF INFORMATION
The financial figures contained in this Prospectus have been – if not mentioned otherwise – derived
from the audited consolidated annual financial statements for the business years ending 31 December
2010 and 31 December 2011. 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 Notes should be based on consideration of the Prospectus as a whole, including the documents
incorporated by reference and the risks of investing in the Notes 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 Notes.
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
Notes (the "Terms and Conditions of the Notes").
1. 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.
At 31 December 2011, the Issuer's share capital (Grundkapital) amounts to EUR 300,000 and
is divided into 300,000 no-par value registered shares (nennbetragslose Namensaktien). The
share capital of the Issuer is fully paid-in. At 31 December 2011 the shareholders of the Issuer
are International Petroleum Investment Company of Abu Dhabi with a direct and indirect (via
IPIC Beta Holdings GmbH) participation of 64 per cent in total and OMV Aktiengesellschaft
with a direct and indirect (via OMV Refining & Marketing GmbH) participation of 36 per cent in
total.
Borealis is organized in two business divisions, polyolefins and base chemicals. Borealis
provides plastic materials and solutions to the infrastructure, advanced packaging and
automotive markets across Europe, the Middle East and Asia. Borealis' production facilities,
innovation and service centres work with customers in more than 120 countries.
2. SUMMARY OF THE OFFERING
Description Public Offering of up to EUR200,000,000
Senior Fixed Rate Notes 2012-2019
Issuer Borealis AG
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Joint Lead Managers Erste Group Bank AG, UniCredit Bank Austria AG
Paying Agent Erste Group Bank AG (the "Paying Agent")
Aggregate Nominal
Amount
Up to EUR 200,000,000. The final aggregate nominal
amount of the issue of Notes will be determined by the
Issuer in agreement with the Joint-Lead Managers within a
book-building procedure which is expected to take place
on or around 20 and 21 June 2012. Information on the
aggregate nominal amount will be filed with the CSSF and
published on the website of the Luxembourg stock
exchange and on the website of the Issuer
(www.borealisgroup.com).
Denomination The Notes are issued in a nominal amount of EUR 1,000
(the "Nominal Amount") each.
Issue Date The Notes are expected to be issued on or around
2 July 2012 (the "Issue Date").
Issue Price The issue price (the "Issue Price") is currently not fixed
and is expected to be between 98 per cent and 102 per
cent of the Nominal Amount. The Issue Price may be
calculated by adding the selling commission for private
investors of 1.5 per cent to the price for institutional
investors (the "Re-offer Price") which will be determined
on the basis of the interest rate, the maturity, the yield and
the demand of institutional investors in the course of a
book-building procedure on or around 20 and 21 June
2012. The Issue Price will be published prior to the
beginning of the Subscription Period. The Syndicate Banks
are entitled to give discounts to customers.
Redemption Amount 100 per cent of the Nominal Amount
Form The Notes are entirely represented by a global changeable
security pursuant to Sec 24 lit b of the Austrian Depository
Act (the "Global Note") without interest coupons. The
Global Note is signed manually by authorised signatories
of the Issuer and shall be authenticated by or on behalf of
the Paying Agent. Claims for the delivery of definitive
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Notes and interest coupons are excluded.
The Global Note will be deposited with Oesterreichische
Kontrollbank Aktiengesellschaft as central securities
depositary (the "Central Securities Depositary") until all
obligations of the Issuer under the Notes have been
satisfied.
The holders of Notes will receive co-ownership
participations or rights in the Global Note 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").
Status of the Notes The Notes constitute direct, unconditional, unsubordinated
and (subject to the provisions of § 3 of the Terms and
Conditions) 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 law.
Interest Each Note shall bear interest on its then outstanding
nominal amount at the Interest Rate as from (and
including) the Issue Date. Interest is payable annually in
arrear on 2 July of each year (each an "Interest Payment
Date") commencing on 2 July 2013. The interest rate (the
"Interest Rate") is currently not fixed and will be
determined in the course of a book-building procedure on
or around 20 and 21 June 2012.The Interest Rate will be
published prior to the beginning of the Subscription Period.
Redemption The Notes will be redeemed at their Nominal Amount on
2 July 2019 (the "Redemption Date") to the extent they
have not previously been redeemed or purchased and
cancelled partially or fully.
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
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at the time of the next following Interest Payment Date
would be required to pay Additional Amounts as defined in
§ 7(1) of the Terms and Conditions) and the Issuer cannot
avoid such obligation by measures reasonable for the
Issuer, the Issuer will be entitled to redeem all (but not
parts of the) Notes at par plus accrued interest until the
date of redemption, if any.
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 Notes
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.
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 Noteholders
pursuant to § 13 of the Terms and Conditions. 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.
Negative Pledge During the term of the Notes but no longer than until all
amounts in respect of interest and principal for the Notes
have been provided to the Paying Agent that has been
appointed pursuant to § 10 of the Terms and Conditions,
the Issuer undertakes:
(a) for other Capital Market Indebtedness (as defined
below) as well as for guarantee obligations or
liabilities for other Capital Market Indebtedness
(i) not to create any Security (as defined below),
and
(ii) not to cause third parties to 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,
unless the Noteholders at the same time and in the
same rank participate in such Security or Liability or
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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
(b) to procure that its Subsidiaries in relation to other
Capital Market Indebtedness as well as to guarantee
obligations or liabilities for other Capital Market
Indebtedness
(i) do not create any Security or assume any
Liability, and
(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,
unless the Noteholders 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.
"Capital Market Indebtedness" shall mean any
present or future obligation of the Issuer and/or the
Subsidiaries 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.
"Security" means mortgages, pledges, retention
rights or other encumbrances and security rights
over the existing or future assets or income of the
Issuer and/or the Subsidiaries.
"Liabilities" means guarantees, sureties and other
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assumptions of, and accessions to, liability.
"Subsidiary" means any corporation or partnership,
in which the Issuer, directly or indirectly, holds more
than 50 per cent of the capital and/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.
No ordinary termination Noteholders shall have no right of ordinary termination.
This shall not affect the Noteholders' extraordinary
termination rights for cause, in particular upon occurrence
of the events described in § 8 (2) of the Terms and
Conditions.
Extraordinary Termination
- Events of Default
Each Noteholder shall be entitled to terminate the Notes
for cause and to demand their immediate redemption at
their Nominal Amount together with interest accrued until
the date of redemption (exclusive). In particular, a good
cause for termination shall be deemed to have occurred if
any of the Event of Defaults as described in § 8 (2) of the
Terms and Conditions occurs:
Expiry of termination right. The right to declare Notes 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 (2) of the Terms and
Conditions shall entitle Noteholders to declare their Notes
due and payable prior to their stated maturity, save as
expressly provided for in these Terms and Conditions and
subject to applicable mandatory law.
Change of Control Each Noteholder is entitled to terminate the Notes for
cause and to demand their immediate redemption at their
Nominal Amount together with interest accrued until the
date of redemption (exclusive) if 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 of the Terms
and Conditions. A termination in accordance with this subpara
(i) shall only be effective where the respective Default
Notice pursuant to para (3) is made within 30 days after
15

the expiry of the initial 60 days' period;
a "Change of Control Event" 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).
Cross-Default Each Noteholder is entitled to terminate the Notes for
cause and to demand their immediate redemption at their
Nominal Amount together with interest accrued until the
date of redemption (exclusive) if a Change of Control (as
defined below) occurs, i.e. an obligation exceeding
EUR 30,000,000 (or the equivalent thereof in any other
currency) of the Issuer or a Material Subsidiary (as defined
in the Terms and Conditions) 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 Noteholder.
Taxation All payments of principal and interest in respect of the
Notes 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 exemptions of
§ 7 (2) of the Terms and Conditions, such additional
amounts as will result in receipt by the Noteholders of the
same amounts as they would have received if no such
withholding or deduction had been required.
Governing law The Notes are governed by the laws of the Republic of
Austria.
16

Place of Jurisdiction For all disputes which may arise out or in connection with
the Notes, 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 Noteholder (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.
Place of Jurisdiction in
relation to Consumers
In relation to any dispute of a consumer with the Issuer out
of or in connection with the Notes (including disputes in
connection with non-contractual obligations arising out of
or in connection with the Notes) the court being competent
in said matters and for such territory located either at the
place of residence of the consumer or at the place of the
Issuer's domicile or any other court being competent due
to a statutory provision shall at the consumer's choice have
jurisdiction.
Place of Performance Place of performance shall be Vienna, Republic of Austria.
Listing It is intended to apply for the admission to trading of the
Notes on the Second Regulated Market of the Vienna
Stock Exchange.
International Securities
Identification Number
(ISIN)
3. SUMMARY OF RISK FACTORS
AT0000A0VL70
The Noteholders 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 Notes. 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 34 et seq). The risks are, inter alia,
the following:
17

Risks regarding the Issuer and its business activities:
Markets and general business risks
- The Borealis Group is subject to competition in all markets where it is active
- The Borealis Group is subject to risks in the petrochemical industry, such as its cyclicality
and volatility
- Borealis Group is subject to market risks in connection with its dependency on the supply
market (commodity risk)
- Borealis Group depends on demand from plastic and melamine processing industries and
from agriculture
- Borealis Group may not be able to continue its business strategy
- The Issuer and the Group are subject to the risk of loss of key personnel
- Borealis Group may be exposed to trade receivables credit risk
- Borealis Group's customers' purchases of products and services could be adversely
affected by a global economic downturn or a substantial slowdown in economic growth,
which could lead to recessions in the Issuer's industry and could have a negative impact on
the operating results and financial condition of Borealis Group
- Borealis Group may be subject to higher capital costs due to the capital requirements for
banks
- Borealis Group is subject to force majeure risks or the risk of acts of sabotage
- Borealis Group is exposed to environmental risks
- Borealis Group is subject to risks associated with extensive environmental and health and
safety laws and regulations which result in costs relating to compliance and remediation
that may adversely affect its business, prospects and/or results of operations
- Borealis Group is subject to the risk of property damage
- Borealis Group is subject to risks related to product liability and claims
- Borealis Group is subject to the risk of adversely changing legislative environments in all
markets where it is active (regulatory risk)
- Borealis Group may experience operational and/or technological problems which may
delay or hinder daily activities or progress of ongoing and planned projects
- Borealis Group could be subject to crime, corruption and money laundering in the countries
where the Issuer operates which may adversely affect the Group's ability to conduct its
business.
- Borealis Group is exposed to risks relating to disputes and litigation
Counterparty risk
- Borealis Group is subject to counterparty risks in connection with its dependency on the
supply market
18

- Borealis Group 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
- Borealis Group is exposed to liquidity risks
- The Issuer is subject to risks in connection with guarantees it has issued
Financial risks
- Borealis Group is subject to risks in connection with financial and other covenants under
certain credit facilities
- Borealis Group is subject to currency risk
- Borealis Group is subject to interest rate risks
Risks regarding the Notes:
- 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 Notes (Credit Risk)
- There is a risk of structural subordination
- Investors in the Notes assume the risk that the credit spread of the Issuer widens and that
as a consequence the price of the Notes falls (Credit Spread Risk)
- The investors face a risk in case of an early redemption and in case of reinvestment (Risk
of Early Redemption/Reinvestment Risk)
- The Issuer may incur additional indebtedness ranking pari passu with the Notes
- Fixed rate securities are exposed to specific market risks (Market Price Risk)
- There is a risk of inflation
- The holders of the Notes receive payments on the Notes in EUR and may be subject to
currency risk if Noteholders are not located in the Euro-zone
- There is a risk that an active trading market for the Notes may not develop
- There is a risk that the markets on which the Notes are traded, could be illiquid (Liquidity
Risk)
- There is a risk that trading in the Notes will be suspended, interrupted or terminated
- If a loan or credit is used to finance the acquisition of the Notes, 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
Notes may significantly or completely reduce the profit potential of the Notes
- Investors have to rely on the functionality of the relevant clearing system
- Legality of Purchase
- The tax impact of an investment in the Notes should be carefully considered
19

- An Austrian court can appoint a trustee (Kurator) for the Notes to exercise the rights and
represent the interests of holders of the Notes on their behalf
- Changes in applicable laws, regulations or regulatory policies may have an adverse effect
on the Issuer, the Notes and the investors
- Changes in the EU Savings Directive could negatively affect investors
4. SELECTED FINANCIAL INFORMATION OF THE ISSUER
The financial data provided below has been published in the Issuer's press release on the Q1
figures dated 11 May 2012:
Key figures in EUR million
(unaudited, rounded)
Q1 2012 Q1 2011
Net Sales 1,882 1,859
Net profit 140 174
Reduction / (increase) in net
interest-bearing debt
(186) (195)
Gearing (1) 40% 43%
Source: Accounting system of the Issuer for first quarter of the business year 2012
(1) Gearing is calculated as current and non-current loans borrowings minus cash and cash equivalents divided by
total equity.
The financial data provided below has been derived from the Issuer's audited consolidated
annual financial statements for the business years ended 31 December 2011 and
31 December 2010:
Key figures in EUR million
(rounded)
Financial year
2011
Financial year
2010
Net Sales 7,096 6,269
Net profit for the year 507 333
EBITDA (1) 569 610
Gearing (2) 35% 37%
Total Assets 6,128 5,630
Source: Audited consolidated annual financial statements of the Issuer for the business years ended 31 December
2010 and 31 December 2011
(1)
EBITDA is calculated as operating profit plus depreciation and amortisation.
(2) Gearing is calculated as current and non-current loans borrowings minus cash and cash equivalents divided by
total equity.
20

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.
1. DIE BOREALIS GRUPPE
Borealis AG ("Borealis" oder die "Emittentin" und zusammen mit ihren konsolidierten
Tochterunternehmen, die "Borealis Gruppe" oder die "Gruppe") 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 am 31.12.2011 EUR 300.000 und setzt sich aus
300.000 nennwertlosen Stückaktien (Namensaktien) zusammen. Das Grundkapital ist zur
Gänze einbezahlt. Die Aktionäre der Emittentin sind am 31.12.2011 die International
Petroleum Investment Company aus Abu Dhabi mit einer direkten und indirekten (via IPIC
Beta Holdings GmbH) Beteiligung von insgesamt 64 %, und die OMV Aktiengesellschaft mit
einer direkten und indirekten (via OMV Refining & Marketing GmbH) Beteiligung von
insgesamt 36 %.
Borealis ist in zwei Geschäftsbereiche (Segmente) untergliedert: Polyolefine und
Basischemikalien: Borealis stellt Kunststofflösungen für die Märkte Infrastruktur,
anspruchsvolle Verpackungen und Automobile in Europa, dem Mittleren Osten und Asien her.
Mit ihren Produktionsstätten, Innovationszentren und Servicezentren bedient die Emittentin
Kunden in mehr als 120 Ländern.
21

2. ZUSAMMENFASSUNG DES ANGEBOTS
Beschreibung Öffentliches Angebot von bis zu EUR 200.000.000
fixverzinslichen Teilschuldverschreibungen
Emittentin Borealis AG
Joint Lead Managers Erste Group Bank AG, UniCredit Bank Austria AG
Zahlstelle Erste Group Bank AG (die "Zahlstelle")
Gesamtnennbetrag Bis zu EUR 200.000.000. Der endgültige
Gesamtnennbetrag der Teilschuldverschreibungen wird
von der Emittentin in Abstimmung mit den Joint-Lead
Managern im Rahmen eines Bookbuilding Verfahrens
festgestellt, das voraussichtlich am oder um den 20 und
den 21 Juni 2012 stattfinden wird. Angaben zum
Gesamtnennbetrag werden bei der CSSF eingereicht und
auf der Internetseite der Luxemburger Börse und jener der
Emittentin (www.borealisgroup.com) veröffentlicht.
Stückelung Die Teilschuldverschreibungen werden in Nennbeträgen
von je EUR 1.000 (der "Nennbetrag") ausgegeben.
Begebungstag Die Teilschuldverschreibungen werden voraussichtlich am
oder um den 2.7.2012 (der "Begebungstag") begeben.
Emissionskurs Der Emissionskurs der Teilschuldverschreibungen (der
"Emissionskurs") steht zur Zeit noch nicht fest und wird
voraussichtlich zwischen 98% und 102% des Nennbetrags
betragen. Der Emissionskurs kann durch Addition der
Verkaufsprovision für Privatkunden von 1,5% zum Preis für
institutionelle Kunden (der "Re-offer Kurs"), der aufgrund
des Zinssatzes, der Laufzeit, der Rendite und der
Nachfrage institutioneller Investoren im Zuge eines
Bookbuilding Verfahrens voraussichtlich am oder um den
20 und den 21 Juni 2012 ermittelt wird, berechnet werden.
Der Emissionskurs wird vor Beginn der Zeichnungsfrist
veröffentlicht. Die Syndikatsbanken können Kunden
Abschläge auf den Emissionskurs gewähren.
22

Rückzahlungsbetrag 100% des Nennbetrags.
Verbriefung Die Teilschuldverschreibungen sind zur Gänze durch eine
veränderbare Sammelurkunde gemäß § 24 lit b
Depotgesetz (die "Sammelurkunde") verbrieft. Die
Sammelurkunde trägt die eigenhändigen Unterschriften
ordnungsgemäß bevollmächtigter Vertreter der Emittentin
und ist von der Zahlstelle oder in deren Namen mit einer
Kontrollunterschrift versehen. Der Anspruch auf
Ausfolgung effektiver Stücke der
Teilschuldverschreibungen und Zinsscheine ist
ausgeschlossen.
Status der Teilschuldverschreibungen
Die Sammelurkunde wird bei der Oesterreichischen
Kontrollbank Aktiengesellschaft als Wertpapiersammelbank
(die "Wertpapiersammelbank") verwahrt, bis sämtliche
Verbindlichkeiten der Emittentin aus den
Teilschuldverschreibungen erfüllt sind.
Den Anleihegläubigern 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.
Die Teilschuldverschreibungen begründen unmittelbare,
unbedingte, nicht nachrangige und (vorbehaltlich der
Bestimmungen des § 3 der Anleihebedingungen) 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 Ausnahme von Verbindlichkeiten, die
nach geltendem zwingendem Recht vorrangig sind.
Verzinsung Der jeweils ausstehende Nennbetrag der
Teilschuldverschreibungen wird ab und einschließlich dem
2.7.2012 (der "Ausgabetag") mit dem Zinssatz jährlich
verzinst. Die Zinsen sind jährlich nachträglich am 2.7.
jeden Jahres (jeweils ein "Zinszahlungstag"), beginnend
mit dem 2.7.2013, zahlbar. Der Zinssatz (der "Zinssatz")
23

steht noch nicht fest und wird im Rahmen eines
Bookbuilding Verfahrens voraussichtlich am oder um den
20 und den 21 Juni 2012 festgelegt. Der Zinssatz wird vor
Beginn der Zeichnungsfrist veröffentlich.
Rückzahlung Die Teilschuldverschreibungen werden am 2.7.2019 (der
"Rückzahlungstag") zum Nennbetrag zurückgezahlt,
soweit sie nicht vorher ganz oder teilweise zurückgezahlt
oder gekauft und entwertet worden sind.
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) der Anleihebedingungen 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 Zinsen zurückzuzahlen.
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.
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.
24

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 § 10 bestellten
Zahlstelle vollständig zur Verfügung gestellt worden sind:
(a) für andere Kapitalmarktverbindlichkeiten (wie
nachstehend definiert) sowie für Verbindlichkeiten
unter Garantien oder Haftungen für andere
Kapitalmarktverbindlichkeiten
(i) keine Sicherheiten (wie nachstehend definiert) 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
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
Tochtergesellschaften für andere
Kapitalmarktverbindlichkeiten sowie für
Verbindlichkeiten unter Garantien oder Haftungen
für andere Kapitalmarktverbindlichkeiten
(i) keine Sicherheiten bestellen oder Haftungen
übernehmen, und
(ii) Dritte zu veranlassen, zur Besicherung der von
der Emittentin oder ihren Tochtergesellschaften
aufgenommenen Kapitalmarktverbindlichkeiten
und den Verbindlichkeiten der Emittentin oder
ihrer Tochtergesellschaften unter Garantien oder
25

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.
"Kapitalmarktverbindlichkeiten" sind
gegenwärtige oder zukünftige Verpflichtungen der
Emittentin und/oder der Tochtergesellschaften zur
Leistung von Geldern (einschließlich Verpflichtungen
aus Garantien oder anderen
Haftungsvereinbarungen) aus Anleihen,
Teilschuldverschreibungen 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.
"Sicherheiten" sind Hypotheken, Pfandrechte,
Zurückbehaltungsrechte oder sonstige Belastungen
und Sicherungsrechte an den gegenwärtigen oder
zukünftigen Vermögenswerten oder Einkünften der
Emittentin und/oder der Tochtergesellschaften.
"Haftungen" sind Garantien, Bürgschaften und
sonstige Haftungsübernahmen und -beitritte.
"Tochtergesellschaft" ist jede Kapital- oder
Personengesellschaft, an der die Emittentin
mittelbar oder unmittelbar mehr als 50% des
Kapitals und/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.
Kein ordentliches Ein ordentliches Kündigungsrecht der Anleihegläubiger
besteht nicht. Ein Recht zur außerordentlichen Kündigung
26

Kündigungsrecht der Anleihegläubiger aus wichtigem Grund, insbesondere
bei Eintritt der in § 8 (2) der Anleihebedingungen
beschriebenen Ereignisse, bleibt hierdurch unberührt.
Außerordentliche
Kündigung -
Kündigungsgründe
Jeder Anleihegläubiger ist berechtigt, seine
Teilschuldverschreibungen aus wichtigem Grund zu
kündigen und deren sofortige Rückzahlung zum
Nennbetrag, zuzüglich bis zum Tag der Rückzahlung
(ausschließlich) aufgelaufener Zinsen zu verlangen. Ein
wichtiger Grund ist insbesondere dann gegeben, wenn
einer der in § 8 (2) der Anleihebedingungen beschriebenen
Kündigungsgründe vorliegt.
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 (2) der
Anleihebedingungen genannten Ereignisse darstellen, den
Anleihegläubiger nicht dazu, seine
Teilschuldverschreibungen vorzeitig zur Rückzahlung fällig
zu stellen, es sei denn, dies ist ausdrücklich in diesen
Anleihebedingungen bestimmt.
Kontrollwechsel Jeder Anleihegläubiger ist berechtigt, seine
Teilschuldverschreibungen aus wichtigem Grund zu
kündigen und deren sofortige Rückzahlung zum
Nennbetrag, zuzüglich bis zum Tag der Rückzahlung
(ausschließlich) aufgelaufener Zinsen zu verlangen, wenn
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 der Anleihebedingungen bekannt machen. Eine
Kündigung nach diesem Unterabsatz (i) ist nur gültig, wenn
die entsprechende Kündigungserklärung innerhalb von 30
Tagen nach Ablauf der ursprünglichen 60 Tage Frist erfolgt;
Als "Kontrollwechsel" 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
27

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.
Drittverzug Jeder Anleihegläubiger ist berechtigt, seine
Teilschuldverschreibungen aus wichtigem Grund zu
kündigen und deren sofortige Rückzahlung zum
Nennbetrag, zuzüglich bis zum Tag der Rückzahlung
(ausschließlich) aufgelaufener Zinsen zu verlangen, wenn
eine von einem (Schieds-) Gericht oder einer
Verwaltungsbehörde rechtskräftig festgestellte Schuld der
Emittentin oder einer Wesentlichen Tochtergesellschaft
(wie in den Anleihebedingungen definiert) mit einem
EUR 30,000.000 (oder den Gegenwert in einer anderen
Währung) übersteigenden Betrag nicht erfüllt wird und
diese Nichterfüllung länger als vier Wochen fortdauert,
nachdem die Zahlstelle hierüber von einem
Anleihegläubiger eine Benachrichtigung erhalten hat.
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 (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 des § 7 (2) der
Anleihebedingungen solche zusätzlichen Beträge zahlen,
sodass die Anleihegläubiger die Beträge erhalten, die sie
ohne Einbehalt oder Abzug erhalten hätten.
Anwendbares Recht Die Teilschuldverschreibungen unterliegen
österreichischem Recht.
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),
28

Verbrauchergerichtsstände
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.
Für alle Rechtsstreitigkeiten eines Verbrauchers aus oder
im Zusammenhang mit den Teilschuldverschreibungen
(einschließlich allfälliger Streitigkeiten im Zusammenhang
mit außervertraglichen Schuldverhältnissen, die sich aus
oder im Zusammenhang mit den
Teilschuldverschreibungen ergeben) gegen die Emittentin
ist nach Wahl des Verbrauchers das sachlich und örtlich
zuständige Gericht am Wohnsitz des Verbrauchers oder
am Sitz des Emittenten oder ein sonstiges, aufgrund der
gesetzlichen Bestimmungen zuständiges Gericht
zuständig.
Erfüllungsort Erfüllungsort ist Wien, Republik Österreich.
Börsenotierung Es ist beabsichtigt, die Zulassung der
Teilschuldverschreibungen zum Handel im Geregelten
Freiverkehr an der Wiener Börse zu beantragen.
International Securities
Identification Number
(ISIN)
AT0000A0VL70
3. 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 34). Es handelt sich dabei insbesondere um die folgenden Risiken:
29

3.1 Risiken in Bezug auf die Emittentin und ihrer Geschäftstätigkeit:
3.1.1. Marktrisiken und generelle Geschäftsrisiken
- Die Borealis Gruppe ist in allen Märkten, in denen sie tätig ist, Wettbewerbsrisiken
ausgesetzt
- Die Borealis Gruppe ist den Risiken der petrochemischen Industrie ausgesetzt (zB der
Zyklizität und der Volatilität )
- Die Borealis Gruppe ist Marktrisiken in Verbindung mit ihrer Abhängigkeit vom
Beschaffungsmarkt ausgesetzt (Rohstoffrisiko)
- Die Borealis Gruppe ist von der Nachfrage der plastik- und melaminverarbeitenden
Industrie und vom Agrarsektor abhängig
- Die Borealis Gruppe ist vielleicht nicht dazu im Stande, ihre geschäftliche Strategie
weiterzuführen
- Die Emittentin und die Borealis Gruppe sind dem Risiko, Schlüsselarbeitskräfte zu
verlieren, ausgesetzt
- Die Borealis Gruppe ist dem Ausfallsrisiko von Handelsforderungen ausgesetzt
- Ein wirtschaftlicher Abschwung oder eine wesentliche Verlangsamung des
Wirtschaftswachstums könnte den Verkauf von Produkten und Dienstleistungen an Kunden
der Borealis Gruppe nachteilig beeinflussen und zu einem wirtschaftlichen Abschwung im
Geschäftsbereich der Emittentin führen, was eine negative Auswirkung auf das
Betriebsergebnis und die Finanzlager der Borealis Gruppe haben könnte
- Die Eigenmittelanforderungen für Banken könnten zu höheren Kapitalkosten für die
Borealis Gruppe führen
- Die Borealis Gruppe ist dem Risiko höherer Gewalt und von Sabotageakten ausgesetzt
- Die Borealis Gruppe ist Umweltrisiken ausgesetzt
- Die Borealis Gruppe ist Risiken in Verbindung mit umfangreichen Umwelt- und
Sicherheitsbestimmungen ausgesetzt, welche Kosten zur Einhaltung und Sanierung
verursachen, die die Aussichten, die Geschäftslage und/oder Geschäftsergebnisse der
Borealis Gruppe nachteilig beeinflussen können
- Die Borealis Gruppe ist den Risiken von Sachschäden ausgesetzt
- Die Borealis Gruppe ist Risiken in Verbindung mit Produkthaftung und Klagen ausgesetzt
- Die Borealis Gruppe ist dem Risiko nachteiliger Entwicklungen der rechtlichen
Rahmenbedingungen ausgesetzt (regulatorisches Risiko)
- Der Borealis Gruppe können operative und/oder technologische Probleme widerfahren,
welche die täglichen Aktivitäten oder den Fortschritt von laufenden und geplanten
Projekten verhindern oder verzögern können
- Kriminalität, Korruption und Geldwäsche in den Ländern, in denen die Borealis Gruppe
operiert, könnten die Fähigkeit der Borealis Gruppe, ihrem Geschäft nachzugehen,
wesentlich erschweren
30

- Die Borealis Gruppe ist den Risiken in Verbindung mit Rechtsstreitigkeiten und
Gerichtsverfahren ausgesetzt
3.1.2 Risiken im Hinblick auf Geschäftspartner
- Die Borealis Gruppe ist in Verbindung mit ihrer Abhängigkeit von Rohstoffen in Bezug auf
ihre Geschäftspartner Risiken ausgesetzt
- Die Borealis Gruppe 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 Borealis Gruppe ist einem Liquiditätsrisiko ausgesetzt
- Die Emittentin ist Risiken in Zusammenhang mit Garantien ausgesetzt, die sie gewährt hat
3.2.3 Finanzielle Risiken
- Die Borealis Gruppe ist Risiken in Verbindung mit finanziellen oder anderen
Vereinbarungen unter bestimmten Kreditfazilitäten ausgesetzt
- Die Borealis Gruppe ist einem Währungsrisiko ausgesetzt
- Die Borealis Gruppe ist Risiken der Zinsänderung ausgesetzt
3.2.4 Risiken in Bezug auf die Teilschuldverschreibungen
- Es besteht das Risiko, dass es der Emittentin gänzlich oder teilweise unmöglich wird, Zins-
oder Kapitalzahlungen auf die Teilschuldverschreibungen zu leisten (Kreditrisiko)
- Es besteht das Risiko struktureller Nachrangigkeit
- Die Anleihegläubiger sind dem Risiko ausgesetzt, dass sich der Wert der
Teilschuldverschreibungen als Ergebnis einer Änderung des Kreditaufschlages der
Emittentin ändert (Credit Spread Risiko)
- Anleihegläubiger sind im Falle einer frühzeitigen Rückzahlung und im Falle einer
Wiederanlage Risiken ausgesetzt (Risiko vorzeitiger Rückzahlung/ Reinvestitionsrisiko)
- Die Emittentin ist berechtigt, weitere Verbindlichkeiten einzugehen, die im gleichen Rang
wie die Teilschuldverschreibungen stehen
- Fix verzinste Wertpapiere sind bestimmten Marktrisiken ausgesetzt (Marktpreisrisiko)
- Es besteht ein Inflationsrisiko
- Anleihegläubiger erhalten Zahlungen auf die Teilschuldverschreibungen in EUR und sind
dem Fremdwährungsrisiko ausgesetzt, sofern sie nicht im Euro-Raum ansässig sind
- Es besteht das Risiko, dass sich kein aktiver Handelsmarkt für die
Teilschuldverschreibungen entwickelt
- Es besteht das Risiko, dass die Märkte, auf denen die Teilschuldverschreibungen
gehandelt werden, nicht liquide sind (Liquiditätsrisiko)
- Es besteht das Risiko, dass der Handel mit den Teilschuldverschreibungen ausgesetzt,
unterbrochen oder eingestellt wird
31

- 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 von Teilschuldverschreibungen
können das Gewinnpotential der Teilschuldverschreibungen signifikant oder vollständig
vermindern
- Anleihegläubiger sind vom Funktionieren des jeweiligen Clearingsystems abhängig
- Es besteht das Risiko der Unrechtmäßigkeit des Erwerbs der Teilschuldverschreibungen
- Die steuerlichen Auswirken auf ein Investment in die Teilschuldverschreibungen sollten
sorgsam berücksichtigt werden
- Ein österreichisches Gericht kann einen Kurator für die Teilschuldverschreibungen
bestellen, der die Rechte der Anleihegläubiger in deren Namen ausübt und diese vertritt
- Veränderungen des anwendbaren Rechts oder Regelungen oder behördlicher
Ordnungspolitik können nachteilige Auswirkungen auf die Emittentin, die
Teilschuldverschreibungen und die Anleihegläubiger haben
- Änderungen der EU-Quellensteuer-Richtlinie könnten nachteilige Auswirkungen auf die
Anleger haben
4. AUSGEWÄHLTE FINANZINFORMATIONEN DER EMITTENTIN
Die folgenden Finanzinformationen wurden in einer Presseaussendung der Emittentin vom
11.5.2012 zu den Quartalszahlen veröffentlicht:
Kennzahlen in EUR Millionen
(ungeprüft, gerundet)
Q1 2012 Q1 2011
Umsatzerlöse 1.882 1.859
Nettogewinn (-verlust) nach
Steuern
Rückgang (Anstieg) der
verzinslichen Nettoverschuldung
Verschuldungsquote
Gearing (1)
Quelle: Rechnungswesen der Emittentin für das 1. Quartal 2012
(1)
140 174
(186) (195)
40% 43%
Der Verschuldungsgrad errechnet sich aus dem Verhältnis von kurz- und langfristigen Finanzverbindlichkeiten
abzüglich Zahlungsmittel und Zahlungsmitteläquivalente geteilt durch das Eigenkapital.
Die folgenden Finanzinformationen wurden den geprüften Konzernabschlüssen der Emittentin
zum 31 Dezember 2011 und 31 Dezember 2010 entnommen:
Kennzahlen in EUR Millionen
(gerundet)
Geschäftsjahr 2011 Geschäftsjahr 2010
Umsatzerlöse 7.096 6.269
32

Ergebnis nach Steuern 507 333
EBITDA (1) 569 610
Verschuldungsgrad 35% 37%
Gesamtvermögen 6,128 5,630
Quelle: Geprüfte Konzernabschlüsse der Emittentin zum 31 Dezember 2010 und 31 Dezember 2011
(1) Das EBITDA ergibt sich aus dem Betriebsergebnis zuzüglich Abschreibungen.
(2) Der Verschuldungsgrad errechnet sich aus dem Verhältnis von kurz- und langfristigen Finanzverbindlichkeiten
abzüglich Zahlungsmittel und Zahlungsmitteläquivalente geteilt durch das Eigenkapital.
33

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 Issuer's 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 Notes. In addition, each of the risks
highlighted below could adversely affect the market value and trading price of the Notes or the rights
of investors under the Notes and, as a result, investors could lose some or all of their investments in
the Notes. Prospective investors should therefore, consider two main categories of risk: (i) risks
relating to the Issuer, and (ii) risks relating to the Notes.
Prospective investors should note that the risks described below are not the only risks faced by the
Issuer or associated with the Notes. 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 Notes.
Prior to deciding whether to invest in any Notes 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 Notes issued under this Prospectus
depends upon the prospective investor's particular financial and other circumstances, as well as on
the terms of the Notes. If an investor 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
Notes.
Words and expressions defined in "Terms and Conditions of the Notes" 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.
1. RISKS REGARDING THE ISSUER, THE GROUP AND ITS BUSINESS
ACTIVITIES
1.1 MARKETS AND GENERAL BUSINESS RISKS
1.1.1 The Borealis Group is subject to competition in all markets where it is active
The Borealis Group operates in a variety of local and international markets, with many factors
affecting the competitive environment which the Group 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
34

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.
1.1.2 The Borealis Group is subject to risks in the petrochemical industry, such as its
cyclicality and volatility
The Borealis Group 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 Borealis
Group's business, results of operations and financial condition.
1.1.3 Borealis Group is subject to market risks in connection with its dependency on the
supply market (commodity risk)
The Borealis Group 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 not be in a position to pass higher raw material costs
on to customers, the Issuer may be forced to bear these increased costs and this could have a
material adverse effect on the Group's business, results of operations and financial condition.
1.1.4 Borealis Group depends on demand from plastic and melamine processing industries
and from agriculture
The products of Borealis Group are sold to customers of numerous industries which use the
Issuer's products to manufacture their products, as well as to agriculture. Borealis Group is
therefore dependent on the demand for products by its customers. The customers of Borealis
Group could cease or decrease their production for a number of reasons (e.g. because of
lower demand for their products), or the customers of Borealis Group could substitute the
products of the Borealis Group with materials other than plastic or melamine. All this could
result in lower demand for Borealis Group's products, which could result in a material adverse
effect on the Group's business, results of operations and financial condition.
1.1.5 Borealis Group may not be able to continue its business strategy
Borealis Group 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.
35

1.1.6 The Issuer and the Group are subject to the risk of loss of key personnel
As it is the case with most enterprises using advanced technology and R&D, a key factor in
the successful economic development of Borealis Group is the technical know how as well as
market knowledge of its skilled management and key personnel. The loss of key personnel of
the issuer and/or the Group could have a material adverse effect on the Borealis Group'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.
1.1.7 Borealis Group may be exposed to trade receivables credit risk
Borealis Group is subject to trade receivables credit risk as the financial situation of its
customers 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
Borealis Group.
1.1.8 Borealis Group 's customers' purchases of products and services could be adversely
affected by a global economic downturn or a substantial slowdown in economic
growth, which could lead to recessions in the Issuer's industry and could have a
negative impact on the operating results and financial condition of Borealis Group
The economic and political environment (e.g. unemployment, inflation, inclination to invest,
and economic growth) in the countries where Borealis Group 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 Borealis Group.
Although the world economy in the years 2010 and 2011 has improved again, the overall
global economic outlook remains uncertain. The general economic conditions and economic
prospects have been adversely affected in recent years mainly due to the concern that some
Member States of the European Union and other countries, where the Borealis Group is active
or has operations, can no longer afford debt servicing in terms of their debt. Several
international efforts to resolve the debt crisis could not eliminate these concerns and the
continuing uncertainty could affect the global markets negatively.
If the economies in countries where Borealis Group is active resume the deterioration
experienced in the past, or if growth remains at low levels, the level of demand by Borealis
Group's customers for its products and services may weaken. Economic downturns may lead
to recessions in the Issuer's industry, either in individual markets or globally. This could, in
turn, negatively impact the Issuer's revenue development, including in the future growth areas
on which it plans to focus, and jeopardise the attainment of Borealis Group's growth targets.
1.1.9 Borealis Group may be subject to higher capital costs due to the capital requirements
for banks
Due to the rules of the Basel III Accord (International Convergence of Capital Measurement
and Capital Standards by the Basel Committee on Banking Supervision), banks will be
required to monitor their capital adequacy requirements more closely and to a great extent
either raise additional own funds or limit their loan exposures, which in turn would result in
36

higher costs of capital for the Issuer because of higher interest rate payments or nonavailability
of loans. This could have a negative impact on the financing costs of Borealis
Group.
1.1.10 Borealis Group 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 Group's capability to operate its business or fulfil its obligations. This
may have a material adverse effect on Borealis Group's business, results of operations and
financial condition.
1.1.11 Borealis Group is exposed to environmental risks
Given the range and complexity of the daily operations undertaken by the Group, 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 Group's business, prospects, financial condition
and/or results of operations.
1.1.12 Borealis Group is subject to risks associated with extensive environmental and health
and safety laws and regulations which result in costs relating to compliance and
remediation that may adversely affect its business, prospects and/or results of
operations
Borealis Group's activities are subject to an increasing number of stringent environmental
protection laws and health and safety regulations in markets in which the Group 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 Borealis Group's business, results of
operations and financial condition. Violations may result in substantial fines or penalties as
well as other civil and/or criminal sanctions.
1.1.13 Borealis Group is subject to the risk of property damage
The chemical business involves significant hazards. Borealis Group's 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 Group's
insurances 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
Group will be able to maintain adequate insurance in the future at rates that it considers
acceptable. The occurrence of any risk that is not fully covered by insurance could have a
material adverse effect on the Group's business, prospects, financial condition and/or results
of operations.
37

1.1.14 Borealis Group is subject to risks related to product liability and claims
The products of Borealis Group are in many cases used by other manufacturers for the
production of their goods. If the products of Borealis Group are defective or not in line with the
required specifications, the goods produced by the Group's customers could be defective or
otherwise negatively affected, which could expose Borealis Group to liability vis-à-vis its
customers and end-consumers. 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 Group’s business, results of operations and financial
condition.
1.1.15 Borealis Group 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
Group is active might change adversely in respect of Borealis Group. The activities of Borealis
Group 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 Group.
1.1.16 Borealis Group may experience operational and/or technological problems which may
delay or hinder daily activities or progress of ongoing and planned projects
Borealis Group 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 Group's business,
prospects, financial condition and/or results of operations.
1.1.17 Borealis Group could be subject to crime, corruption and money laundering in the
countries where the Issuer operates which may adversely affect the Group's ability to
conduct its business
Organised crime, including extortion and fraud, poses a risk to businesses in certain countries
where the Group operates. Certain countries where Borealis Group operates still face
considerable weaknesses in the fight against corruption and organized crime. Property and
employees may become targets of theft, violence or extortion. Threats or incidents of crime
may force the Group to cease or alter certain activities or to liquidate certain investments,
which may cause losses or have other negative impacts on Borealis Group. In certain
countries where the Group is operating there is the risk of higher levels of corruption, including
the bribing of officials for the purpose of initiating and/or avoiding investigations by government
agencies and other purposes. Allegedly, there have also been instances in which government
officials have engaged in selective investigations and prosecutions to further the interest of the
government and individual officials. Furthermore, in certain countries where the Group
operates, there have been allegations that many members of the media allegedly regularly
publish biased articles in return for payment. The Group's operations could be adversely
affected by illegal activities, corruption or claims implicating the Group in illegal activities.
Corruption and theft may also arise within the Issuer; for example, through products being
stolen. Such activities may cause losses or have other negative impacts on Borealis Group.
38

1.1.18 Borealis Group is exposed to risks relating to disputes and litigation
Borealis Group 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
Group's business, results of operations and financial condition.
1.2 COUNTERPARTY RISKS
1.2.1 Borealis Group is subject to counterparty risks in connection with its dependency on
the supply market
The Group 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 from delivering these raw materials, this could have a material adverse effect on the
Group’s business, results of operations and financial condition.
1.2.2 Borealis Group is subject to risks in connection with its exposure to subcontractors
and contractual partners
The Group often needs to cooperate with subcontractors and contractual partners. Borealis
Group is subject to the risk that some subcontractors and/or contractual partners render their
services inadequately or not in a timely manner. Subcontractors and/or contractual partners
may become insolvent during their engagement. In that case Borealis Group could lose
customers or the further growth of the Issuer could be impaired. This could have a material
adverse effect on the Group's business, results of operations and financial condition.
1.2.3 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 adequate costs. This could have a material adverse effect on
the Issuer's business, results of operations and financial condition.
1.2.4 Borealis Group is exposed to liquidity risks
The Group 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 Group.
1.2.5 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
39

Issuer. This could have a material adverse effect on the Issuer's business and financial
condition.
1.3 FINANCIAL RISKS
1.3.1 Borealis Group is subject to risks in connection with financial and other covenants
under certain credit facilities
Members of Borealis Group are party to several credit facility agreements that restrict its ability
to engage in certain activities, including their 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 respective members of
Borealis Group fail 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, 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.
1.3.2 Borealis Group is subject to currency risk
The Issuer and other members of Borealis Group finance their equipment, investments as well
as expansions partly in currencies other than EUR, which is in line with the Group's
internationally orientated business operations. Usually, F/X rates change in time, which could
have a material adverse effect on the Group's business, results of operations and financial
condition.
1.3.3 Borealis Group is subject to interest rate risks
The expansion of the Group'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 Group. An increase of the interest rate level may therefore have a material adverse
effect on the Group's business, results of operations and financial condition.
2. RISKS REGARDING THE NOTES
The following is a disclosure of risk factors that are material to the Notes in order to assess the
market risk associated with these Notes. Prospective investors should consider these risk
factors before deciding to purchase the Notes.
The following statements are not exhaustive. Prospective investors should consider all
information provided in this Prospectus, the documents incorporated by reference, any
supplement thereto and consult with their own professional advisers (including their financial,
accounting, legal and tax advisers) if they consider it necessary. In addition, investors should
be aware that the risks described may combine and, thus, intensify one another.
The purchase of the Notes may involve substantial risks and may only be suitable for investors
who have the knowledge and experience in financial and business matters necessary to
40

enable them to evaluate such risks and the merits of an investment in the Notes.
An investment in the Notes 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 Notes 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 Notes will have on their overall investment portfolio;
� have sufficient financial resources and liquidity to bear all risks of an investment in the
Notes, including where the currency for principal or interest payments is different from the
potential investor’s currency;
� understand thoroughly the terms of the Notes;
� be able to evaluate (either alone or with the help of a financial adviser) possible scenarios
for economic, interest rate and other factors that may affect its investment and its ability
to bear the applicable risks; and
� recognise that it may not be possible to dispose of the Notes for a substantial period of
time, if at all before maturity.
The Notes may be subject in particular to the following risks:
2.1 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 Notes (Credit Risk)
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 Notes. 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 Notes.
2.2 There is a risk of structural subordination
Investors should be aware that the Issuer is subject to stricter rules (e.g. with respect to events
of default) under other financial instruments than the Notes. This may e.g. lead to situation
where the Issuer's creditors under such other financial instruments under certain
circumstances, contrary to the Noteholders, are entitled to terminate the respective contracts
for cause and ask for immediate repayment or that third creditors of the Issuer receive security
in the Issuer's or its subsidiaries' assets in the liquidation proceeds of which the Noteholders
do not participate. In such case the Noteholders are exposed to the risk that the Issuer will not
have sufficient funds to service the Notes upon having (partly) satisfied the other creditors'
claims. Investors would suffer a total loss.
Prospective investors should bear in mind that the Notes have a longer tenor than other
financial instruments of the issuer. Thus, due to the longer tenor claims of Noteholders rank
41

junior to the other creditors' claims since the claims of the Noteholders in case of ordinary
redemption are to be redeemed later than the claims of creditors under other financial
instruments.
2.3 Investors in the Notes assume the risk that the credit spread of the Issuer widens and
that as a consequence the price of the Notes falls (Credit Spread Risk)
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, the remaining term to maturity of the Notes, 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 to the risk that the credit spread of the Issuer widens resulting in a
decrease in the price of the Notes.
2.4 The investors face a risk in case of an early redemption and in case of reinvestment
(Risk of Early Redemption/Reinvestment Risk)
In the event that the Notes 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.
2.5 The Issuer may incur additional indebtedness ranking pari passu with the Notes
The Issuer has not entered into any restrictive covenants in connection with the issuance of
the Notes regarding its respective ability to incur additional indebtedness ranking pari passu
with the obligations under or in connection with the Notes. Incurring any additional
indebtedness may increase the likelihood of a deferral of coupon payments under the Notes
and/or may reduce the amount recoverable by Noteholders in the event of insolvency or
liquidation of the Issuer.
2.6 Fixed rate securities are exposed to specific market risks (Market Price Risk)
A holder of a note 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 notes 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. Noteholders should be aware that movements of the market interest rate
can adversely affect the price of the Notes and can lead to losses for the Noteholders if they
42

sell Notes.
2.7 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 Notes. If the
inflation rate is equal to or higher than the nominal yield, the real yield is zero or even
negative.
2.8 The holders of the Notes receive payments on the Notes in EUR and may be subject to
currency risk
Because the Notes are denominated in EUR and also the interest payable on the Notes is
calculated and paid out in EUR, investors, who have an income or assets in a currency other
than EUR or who do not require the proceeds from the Notes in EUR, may be subject to a
currency risk, since they are exposed to changes in currency exchange rates, which can
reduce the yield on the Notes.
Such changes in currency exchange rates generally depend on factors over which the Issuer
and the holders of the Notes have no control, such as macroeconomic factors, speculative
transactions and interventions by central banks and governments and the supply of and
demand for the relevant currencies.
In recent years, rates of exchange for certain currencies have been highly volatile, and such
volatility may be expected to continue in the future. Fluctuations in any particular exchange
rate that have occurred in the past are not necessarily indicative, however, of fluctuations in
the rate that may occur during the term of the Notes.
Furthermore, there is a risk that authorities with jurisdiction over the currency, in which an
investor’s financial activities are denominated principally, may impose or modify exchange
controls. Such exchange controls could adversely affect an applicable exchange rate. As a
result, investors may receive less interest or principal than expected, or no interest or
principal.
2.9 There is a risk that an active trading market for the Notes may not develop
The Issuer has applied for admission to listing of the Notes on the Second Regulated Market
(Geregelter Freiverkehr) of the Vienna Stock Exchange. Although the Issuer expects to be
granted admission to listing for the Notes, the Issuer cannot guarantee that such admission
will indeed be granted. It cannot be guaranteed that the stock exchange prices at which the
Notes will be quoted will not be below par. Negative consequences on the stock exchange
price of the Notes 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.
43

2.10 There is a risk that the markets on which the Notes are traded, could be illiquid
(Liquidity Risk)
Although the Issuer has applied for admission to listing of the Notes on the Second Regulated
Market (Geregelter Freiverkehr) of the Vienna Stock Exchange, it cannot be guaranteed that
active trading in the Notes will develop and that the market for the Notes 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 at which they have bought such securities or a price which is
appropriate for such securities. This could result in a material adverse effect for investors.
2.11 There is a risk that trading in the Notes will be suspended, interrupted or terminated
The listing of the Notes 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 Notes 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 Notes 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 Notes where trading is suspended, interrupted or terminated, and the stock
exchange quotations of such Notes may not adequately reflect the price of such Notes.
Finally, even if trading in the Notes 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 Notes is
suspended after price-sensitive information relating to the Notes has been published, the price
of the Notes may already have been adversely affected. All these risks would, if they
materialise, have a material adverse effect on the investors.
2.12 If a loan or credit is used to finance the acquisition of the Notes, the loan may
significantly increase the risk of a loss
If a loan is used to finance the acquisition of the Notes by an investor and the Notes
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.
2.13 There is a risk that incidental costs related in particular to the purchase and sale of the
Notes may significantly or completely reduce the profit potential of the Notes
When Notes 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.
44

These incidental costs may significantly reduce or eliminate any profit from holding the Notes.
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).
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 Notes before investing in the Notes.
2.14 Investors have to rely on the functionality of the relevant clearing system
The Notes 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 Notes are actually transferred to the securities portfolio of the relevant investor. Investors
have to rely on the functionality of the relevant clearing system.
2.15 Legality of Purchase
The Issuer has not or does not assume responsibility for the lawfulness of the acquisition of
the Notes by a prospective purchaser of the Notes, whether under the laws of the jurisdiction
of its incorporation or the jurisdiction in which it operates (if different) or for compliance by that
prospective purchaser with any laws, regulation or regulatory policy applicable to it. A
prospective purchaser may not rely on the Issuer in connection with its determination as to the
legality of its acquisition of the Notes.
2.16 The tax impact of an investment in the Notes should be carefully considered
Interest payments on Notes, or profits realised by an investor upon the sale or repayment of
Notes, 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 and Luxembourg 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 advisers for advice on the tax impact of an investment in the Notes. Furthermore,
the applicable tax regime may change to the disadvantage of the investors in the future.
2.17 An Austrian court can appoint a trustee (Kurator) for the Notes to exercise the rights
and represent the interests of holders of the Notes on their behalf
Pursuant to the Austrian Notes Trustee Act (Kuratorengesetz 1 ), a trustee (Kurator) can be
1 Gesetz betreffend die gemeinsame Vertretung der Rechte der Besitzer von auf den Inhaber lautenden oder durch
Indossament übertragbaren Teilschuldverschreibungen und die bücherliche Behandlung der für solche
Teilschuldverschreibungen eingeräumten Hypothekarrechte (RGBl 49/1874 of 24 April 1874).
45

appointed by an Austrian court, upon the request of any interested party (e.g., a holder of
Notes) or upon the initiative of the competent court, for the purposes of representing the
common interests of the holders of the Notes in matters concerning their collective rights. In
particular, this may occur if insolvency proceedings are initiated against the Issuer, in
connection with any amendments to the terms and conditions of the Notes or changes relating
to the Issuer, or under other similar circumstances. If a trustee is appointed, it will exercise the
collective rights and represent the interests of the holders of the Notes and will be entitled to
make statements on their behalf which shall be binding on all holders of the Notes. Where a
trustee represents the interests and exercises the rights of the holders of the Notes, this may
conflict with or otherwise adversely affect the interests of individual or all holders of the Notes.
2.18 Changes in applicable laws, regulations or regulatory policies may have an adverse
effect on the Issuer, the Notes and the investors
The terms and conditions of the Notes 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.
2.19 Changes in the EU Savings Directive could negatively affect investors
The EU adopted the Council Directive 2003/48/EC of 3 June 2003 on taxation of savings
income in the form of interest payments ("EU Savings Directive"), which obliges each EU
Member State to provide to the tax authorities of other Member States details of payments of
interest and other similar income paid by a person within its jurisdiction to an individual
resident in another Member State or to certain limited types of entities established in that other
Member State, except that Austria and Luxembourg (and originally also Belgium) have instead
imposed a withholding system for a transitional period (the ending of such transitional period
being dependent upon the conclusion of certain other agreements relating to information
exchange with certain other countries) unless during such period they elect otherwise. A
number of other non-EU countries and territories, including Switzerland, have agreed to adopt
similar measures (a withholding system in the case of Switzerland). On 13 November 2008,
the European Commission published a proposal for amendments to the EU Savings Directive,
which included a number of suggested changes, which if implemented, would broaden the
scope of the Directive described above. The European Parliament approved an amended
version of this proposal on 24 April 2009. Investors who are in any doubt as to their position
should consult their professional advisers. Changes in the EU Savings Directive could
materially adversely affect the taxation effects for investors in the Notes.
20. 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.
46

TERMS AND CONDITIONS OF THE NOTES
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. References in
these Terms and Conditions to §§ are references
to §§ of these Terms and Conditions if not
indicated otherwise.
Terms and Conditions
of the
up to EUR 200,000,000
Fixed Rate
Notes
of
Borealis AG
§ 1
Nominal Amount and Denomination,
Form, Transferability
(1) Nominal Amount and Denomination. This
issue of Fixed Rate Notes 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 nominal amount
of up to EUR 200,000,000 (in words: up to
Euro one hundred million) is divided into up
to 200,000 notes payable to the bearer and
ranking pari passu among themselves, with
a nominal amount (the "Nominal Amount")
of EUR 1,000 each (the "Notes"; this term
includes any further Notes issued pursuant
to § 11 that form a single series with the
Notes).
(2) Form. The Notes are entirely represented by
a global changeable security pursuant to
Sec 24 lit b of the Austrian Depository Act
(the "Global Note") without interest
coupons. The Global Note shall be signed
manually by authorised signatories of the
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. In diesen
Anleihebedingungen enthaltene Bezugnahmen
auf §§ beziehen sich auf §§ dieser
Anleihebedingungen, wenn sich aus dem
Zusammenhang nichts anderes ergibt.
Anleihebedingungen
der
bis zu EUR 200.000.000
fixverzinslichen
Teilschuldverschreibungen
der
Borealis AG
§ 1
Nennbetrag und Stückelung, Verbriefung,
Übertragbarkeit
(1) Nennbetrag und Stückelung. Diese Emission
von fixverzinslichen
Teilschuldverschreibungen 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 (der "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) Verbriefung. Die Teilschuldverschreibungen
sind zur Gänze durch eine veränderbare
Sammelurkunde gemäß § 24 lit b
Depotgesetz (die "Sammelurkunde")
verbrieft. Die Sammelurkunde trägt die
eigenhändigen Unterschriften
47

Issuer and shall be authenticated by or on
behalf of the Paying Agent as appointed
pursuant to § 10. Claims for the delivery of
definitive Notes and interest coupons shall
be excluded.
(3) Central Securities Depositary. The Global
Note will be deposited with Oesterreichische
Kontrollbank Aktiengesellschaft as central
securities depositary (the "Central
Securities Depositary") until all obligations
of the Issuer under the Notes have been
satisfied.
(4) Transferability. The holders of Notes will
receive co-ownership participations or rights
in the Global Note 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").
(5) ISIN. The International Securities
Identification Number (ISIN) shall be
AT0000A0VL70.
(6) Noteholder. The term "Noteholder" means
each holder of a co-ownership participation
in the Notes represented by the Global Note.
§ 2
Status of the Notes
The Notes 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 law.
ordnungsgemäß bevollmächtigter Vertreter
der Emittentin und ist von der gemäß § 10
bestellten Zahlstelle oder in deren Namen
mit einer Kontrollunterschrift versehen. Der
Anspruch auf Ausfolgung effektiver Stücke
der Teilschuldverschreibungen und
Zinsscheine ist ausgeschlossen.
(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) Übertragbarkeit. Den Anleihegläubigern
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. Die Wertpapierkennummer
("International Securities Identification
Number" oder "ISIN") lautet AT0000A0VL70.
(6) Anleihegläubiger. Der Begriff
"Anleihegläubiger" bezeichnet jeden
Inhaber eines Miteigentumsanteils an den
durch die Sammelurkunde verbrieften
Teilschuldverschreibungen.
§ 2
Status der Teilschuldverschreibungen
Die Teilschuldverschreibungen 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 Ausnahme von Verbindlichkeiten, die
nach geltendem zwingendem Recht
48

§ 3
Negative Pledge
(1) Negative Pledge. During the term of the
Notes but no longer than until all amounts in
respect of interest and principal for the Notes
have been provided to the Paying Agent that
has been appointed pursuant to § 10, the
Issuer undertakes:
(a) for other Capital Market Indebtedness (as
defined below) as well as for guarantee
obligations or liabilities for other Capital
Market Indebtedness
(i) not to create any Security (as defined
below), and
(ii) not to cause third parties to 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,
unless the Noteholders 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
(b) to procure that its Subsidiaries in relation to
other Capital Market Indebtedness as well as
to guarantee obligations or liabilities for other
Capital Market Indebtedness
vorrangig sind.
§ 3
Negativerklärung
(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 § 10
bestellten Zahlstelle vollständig zur
Verfügung gestellt worden sind:
(a) für andere Kapitalmarktverbindlichkeiten (wie
nachstehend definiert) sowie für
Verbindlichkeiten unter Garantien oder
Haftungen für andere
Kapitalmarktverbindlichkeiten
(i) keine Sicherheiten (wie nachstehend
definiert) 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 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
Tochtergesellschaften für andere
Kapitalmarktverbindlichkeiten sowie für
Verbindlichkeiten unter Garantien oder
Haftungen für andere
Kapitalmarktverbindlichkeiten
(i) do not create any Security or assume (i) keine Sicherheiten bestellen oder
49

any Liability, and 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,
unless the Noteholders 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.
"Capital Market Indebtedness" shall mean
any present or future obligation of the Issuer
and/or the Subsidiaries 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.
"Security" means mortgages, pledges,
retention rights or other encumbrances and
security rights over the existing or future
assets or income of the Issuer and/or the
Subsidiaries.
"Liabilities" means guarantees, sureties
and other assumptions of, and accessions
to, liability.
"Subsidiary" means any corporation or
partnership, in which the Issuer, directly or
indirectly, holds more than 50 per cent. of
(ii) Dritte veranlassen, zur Besicherung der
von der Emittentin oder ihren
Tochtergesellschaften aufgenommenen
Kapitalmarktverbindlichkeiten und den
Verbindlichkeiten der Emittentin oder
ihrer Tochtergesellschaften 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.
"Kapitalmarktverbindlichkeiten" sind
gegenwärtige oder zukünftige
Verpflichtungen der Emittentin und/oder der
Tochtergesellschaften zur Leistung von
Geldern (einschließlich Verpflichtungen aus
Garantien oder anderen
Haftungsvereinbarungen) aus Anleihen,
Teilschuldverschreibungen 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.
"Sicherheiten" sind Hypotheken,
Pfandrechte, Zurückbehaltungsrechte oder
sonstige Belastungen und Sicherungsrechte
an den gegenwärtigen oder zukünftigen
Vermögenswerten oder Einkünften der
Emittentin und/oder der
Tochtergesellschaften.
"Haftungen" sind Garantien, Bürgschaften
und sonstige Haftungsübernahmen und -
beitritte.
"Tochtergesellschaft" ist jede Kapital- oder
Personengesellschaft, an der die Emittentin
mittelbar oder unmittelbar mehr als 50% des
50

the capital and/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.
§ 4
Interest
(1) Interest Period. Each Note shall bear interest
on its then outstanding nominal amount at a
rate of [Interest rate to be inserted upon
Pricing pursuant to the Pricing Notice]
per cent. per annum as from (and including)
2 July 2012 (the "Issue Date"). Interest is
payable annually in arrear on 2 July of each
year (each an "Interest Payment Date")
commencing on 2 July 2013.
(2) Cessation of interest payments. The Notes
shall cease to bear interest from the end of
the day which precedes the Redemption
Date (as defined in § 5). If the Issuer fails to
redeem the Notes when due, the obligation
to pay interest on the outstanding nominal
amount shall continue to accrue beyond the
due date until (but excluding) the date of
actual redemption of the Notes.
(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
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).
"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
Kapitals und/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
Verzinsung
(1) Zinsperiode. Der jeweils ausstehende
Nennbetrag der Teilschuldverschreibungen
wird ab und einschließlich dem 2.7.2012 (der
"Ausgabetag") mit [Der Zinssatz wird nach
der Preisfestsetzung gemäß dem
Preisblatt eingefügt] % jährlich verzinst.
Die Zinsen sind jährlich nachträglich am 2.7.
jeden Jahres (jeweils ein
"Zinszahlungstag"), beginnend mit dem
2.7.2013, zahlbar.
(2) Ende des Zinslaufs. Der Zinslauf der
Teilschuldverschreibungen endet mit Ablauf
des Tages, der dem Rückzahlungstag (wie
in § 5 definiert) vorausgeht. Sollte die
Emittentin die Teilschuldverschreibungen bei
Fälligkeit nicht einlösen, endet die
Verpflichtung zur Zahlung von Zinsen auf
den ausstehenden Nennbetrag nicht am
Rückzahlungstag, sondern erst mit (jedoch
ausschließlich) dem Tag der tatsächlichen
Rückzahlung der Teilschuldverschreibungen.
(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 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 ICMA-Regelung).
"Zinsperiode" bezeichnet den Zeitraum ab
dem Ausgabetag (einschließlich) bis zum
ersten Zinszahlungstag (ausschließlich) und
danach ab jedem Zinszahlungstag
(einschließlich) bis zum nächstfolgenden
51

Date (exclusive). Zinszahlungstag (ausschließlich).
§ 5
Maturity and Redemption
(1) Maturity. The Notes will be redeemed at their
Nominal Amount on 2 July 2019 (the
"Redemption Date") to the extent they have
not previously been redeemed or purchased
and cancelled partially or fully.
(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)
Notes at par plus accrued interest until the
date of redemption, if any.
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
Notes 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.
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 Noteholders pursuant to
§ 13. It shall be irrevocable, shall state the
date fixed for the repayment and shall
§ 5
Fälligkeit und Rückzahlung
(1) Fälligkeit. Die Teilschuldverschreibungen
werden am 2.7.2019 (der
"Rückzahlungstag") zum Nennbetrag
zurückgezahlt, soweit sie nicht vorher ganz
oder teilweise zurückgezahlt oder gekauft
und entwertet worden sind.
(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 Zinsen zurückzuzahlen.
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.
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
52

contain a summary explanation setting out
the circumstances constituting the Issuer's
repayment right.
(3) Early Repayment. Except for the provision
contained above and in § 8(1), the Issuer
shall not be entitled to repay the Notes prior
to the Redemption Date.
§ 6
Payments
(1) Payment of Principal and Interest. The
Issuer undertakes to pay, as and when due,
principal and interest payable on the Notes
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.
(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;
Noteholders shall have no right to claim
payment of interest or other indemnity in
respect of such delay in payment.
"Business Day" means a day (other than a
Saturday or Sunday) on which the Trans-
European Automated Real-Time Gross
Settlement Express Transfer (TARGET2)
System and the Clearing Systems settle
payments in euro.
§ 7
Taxation
(1) Taxes. All payments of principal and interest
in respect of the Notes 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,
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) Vorzeitige Rückzahlung. Mit Ausnahme der
obigen Bestimmungen und des § 8(1) ist die
Emittentin nicht berechtigt, die
Teilschuldverschreibungen vor dem
Rückzahlungstag zurückzuzahlen.
§ 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 für die jeweiligen Kontoinhaber.
(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.
"Geschäftstag" ist ein Tag (außer einem
Samstag oder Sonntag), an dem das Trans-
European Automated Real-Time Gross
Settlement Express Transfer (TARGET2)
System und die Clearingsysteme Zahlungen
in Euro abwickeln.
§ 7
Steuern
(1) 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 (die "Steuern")
geleistet, die von der Republik Österreich
oder einer ihrer Gebietskörperschaften oder
Behörden mit der Befugnis zur Erhebung
von Steuern auferlegt, erhoben, eingezogen,
53

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
Noteholders of the same amounts as they
would have received if no such withholding
or deduction had been required.
(2) Exception. However, no such Additional
Amounts shall be payable with respect to
such Taxes
(i) to which a Noteholder is subject to
because of a nexus to the Republic of
Austria other than the mere fact of being
the holder of the relevant Notes; or
(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 (a) 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, (b) any international treaty or
understanding relating to such taxation
and to which the Republic of Austria or
the European Union is a party, or (c) any
law implementing or complying with, or
introduced in order to conform to, such
Directive, Regulation, treaty or
understanding; or
(iii) which the Noteholder would not be
subject to if he had presented his Notes
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
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, sodass die
Anleihegläubiger die Beträge erhalten, die
sie ohne Einbehalt oder Abzug erhalten
hätten.
(2) Ausnahme. Solche Zusätzlichen Beträge
sind jedoch nicht zahlbar wegen solcher
Steuern
(i) denen ein Anleihegläubiger wegen einer
anderen Beziehung zur Republik
Österreich unterliegt als der bloßen
Tatsache, dass er der Inhaber der
betreffenden Teilschuldverschreibungen
ist; oder
(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) 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
54

(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 such deduction or withholding; or
(v) which are withheld by a securities
custodian or a person acting as
collection agent for the Noteholder or
which are levied otherwise than by the
Issuer making a withholding or deduction
from any amounts of principal or interest
payable by it; or
(vi) which are withheld or deducted by a
paying or custodian agent (auszahlende
oder depotführende Stelle) (in terms of
Sec 95 EStG or a corresponding
subsequent provision) located within the
Republic of Austria – Austrian
withholding tax (Kapitalertragsteuer)
shall therefore in no case be a tax which
requires the Issuer to pay Additional
Amounts; or
(vii) which could be reclaimed pursuant to a
double taxation treaty or the fiscal laws
of Austria or be dischargeable at the
source due to community law (EU)
provisions.
(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
No Ordinary Termination. Events of
Default and
Repayment
(1) No ordinary termination. Noteholders shall
have no right of ordinary termination. This
shall not affect the Noteholders'
extraordinary termination rights for cause, in
particular upon occurrence of the events
described in § 8 (2).
Zahlung vorgelegt hätte; oder
(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 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.
(vi) die von einer in der Republik Österreich
befindlichen auszahlenden oder
depotführenden Stelle (im Sinne des
§ 95 EStG idgF oder einer allfälligen
entsprechenden Nachfolgebestimmung)
einbehalten oder abgezogen werden –
die österreichische Kapitalertragsteuer
ist daher keinesfalls eine Steuer, für die
seitens der Emittentin Zusätzliche
Beträge zu bezahlen sind; oder
(vii) die aufgrund eines Doppelbesteuerungsabkommens
oder gemäß
den Steuergesetzen der Republik
Österreich rückerstattbar wären oder
aufgrund gemeinschaftsrechtlicher
Bestimmungen (EU) an der Quelle
entlastbar wären.
(3) Eine Bezugnahme in diesen
Anleihebedingungen auf Kapital oder Zinsen
schließt jegliche Zusätzlichen Beträge im
Hinblick auf Kapital bzw. Zinsen ein, die
gemäß diesem § 7 zahlbar sind.
§ 8
Kein ordentliches Kündigungsrecht.
Kündigungsgründe und Rückzahlung
(1) Kein ordentliches Kündigungsrecht. Ein
ordentliches Kündigungsrecht der
Anleihegläubiger besteht nicht. Ein Recht zur
außerordentlichen Kündigung der
Anleihegläubiger aus wichtigem Grund,
insbesondere bei Eintritt der in § 8 (2)
beschriebenen Ereignisse, bleibt hierdurch
55

(2) Extraordinary Termination - Events of
Default. Each Noteholder shall be entitled to
terminate the Notes for cause and to
demand their immediate redemption at their
Nominal Amount together with interest
accrued until the date of redemption
(exclusive). In particular, a good cause for
termination shall be deemed to have
occurred if any of the following events (each
an "Event of Default") occurs:
(a) Non-Payment: the Issuer fails to pay any
principal or interest or any other amounts
due pursuant to § 7 on any of the Notes
when due and such failure continues for a
period of 7 Business Days (as defined in
§ 6(2)) after the relevant due date; or
(b) Breach of Negative Pledge: the Issuer does
not comply with its obligations under § 3; or
(c) Breach of Other Obligations: the Issuer does
not or not entirely perform or comply with
any one or more of its other obligations
under the Notes and such default is not
remedied within 15 Business Days after the
Paying Agent has received notice thereof
from a Noteholder; or
(d) Cross-Default: an obligation exceeding EUR
30,000,000 (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 Noteholder; or
(e) 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
unberührt.
(2) Außerordentliche Kündigung -
Kündigungsgründe. Jeder Anleihegläubiger
ist berechtigt, seine
Teilschuldverschreibungen aus wichtigem
Grund zu kündigen und deren sofortige
Rückzahlung zum Nennbetrag, zuzüglich bis
zum Tag der Rückzahlung (ausschließlich)
aufgelaufener Zinsen zu verlangen. Ein
wichtiger Grund ist insbesondere dann
gegeben, wenn einer der folgenden
Kündigungsgründe vorliegt (jeweils ein
"Kündigungsgrund"):
(a) Nichtzahlung: die Emittentin versäumt es,
Kapital oder Zinsen oder sonstige nach § 7
auf die Teilschuldverschreibungen zahlbare
Beträge innerhalb von 7 Geschäftstagen
(wie in § 6(2) definiert) nach dem
betreffenden Fälligkeitsdatum zu zahlen;
oder
(b) Verletzung der Negativverpflichtungen: die
Emittentin gegen eine ihrer Verpflichtungen
gemäß § 3 verstößt; oder; oder
(c) Verletzung anderer Verpflichtungen: die
Emittentin erfüllt eine oder mehrere ihrer
anderen Verpflichtungen aus den
Teilschuldverschreibungen nicht
ordnungsgemäß oder nicht zur Gänze und
dieser Zustand wird nicht innerhalb von 15
Geschäftstagen, nachdem die Zahlstelle
eine diesbezügliche Mitteilung durch den
Anleihegläubiger erhalten hat, behoben;
oder
(d) Drittverzug: eine von einem (Schieds-)
Gericht oder einer Verwaltungsbehörde
rechtskräftig festgestellte Schuld der
Emittentin oder einer Wesentlichen
Tochtergesellschaft mit einem EUR
30,000.000 (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
(e) Verwertung von Sicherheiten: eine für eine
Verbindlichkeit der Emittentin bestellte
Sicherheit von einer Vertragspartei unter
Zustimmung der Emittentin verwertet wird
56

impairment of the Issuer's ability to service
its obligations under the Notes; or
(f) 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
(g) Insolvency: any court institutes insolvency
proceedings over the assets of the Issuer or
any of its Material Subsidiaries, or the Issuer
or any of its Material Subsidiaries applies for
the opening of such proceedings, or an
application for the opening of such
insolvency proceedings has been rejected
for lack of assets; or
(h) 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
(Umgündungssteuergesetz), provided such
other or new company or, as the case may
be, companies assumes all liabilities under
the Notes and the credit worthiness of such
company is equal or higher than the Issuer's;
or
(i) 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
(j) 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
und es dadurch zu einer wesentlichen
Beeinträchtigung der Fähigkeit der
Emittentin kommt, ihre Verbindlichkeiten aus
den Teilschuldverschreibungen zu bedienen;
oder
(f) 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
(g) Insolvenz: ein Gericht ein Insolvenzverfahren
über das Vermögen der Emittentin oder
einer ihrer Wesentlichen
Tochtergesellschaften eröffnet oder die
Emittentin oder eine ihrer Wesentlichen
Tochtergesellschaften beantragt die
Einleitung eines solchen Verfahrens, oder
ein solches Insolvenzverfahren mangels
kostendeckenden Vermögens abgewiesen
wird; oder
(h) 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 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
(i) Einstellung der Geschäftstätigkeit: die
Emittentin oder eine ihrer Wesentlichen
Tochtergesellschaften stellt ihren gesamten
oder ihren nahezu gesamten
Geschäftsbetrieb ein oder droht, dies zu tun;
oder
(j) Kontrollwechsel: ein Kontrollwechsel (wie
unten definiert) erfolgt, es sei denn, eine
international anerkannte Ratingagentur
erteilt der Emittentin innerhalb von 60 Tagen
57

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;
whereas: wobei:
"Material Subsidiary" within this § 8 means
a Subsidiary of the Issuer
(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
(ii) whose earnings before income 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
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;
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
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;
"Wesentliche Tochtergesellschaft" im
Sinne dieses § 8 meint eine
Tochtergesellschaft der Emittentin,
(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) deren EBIT auf konsolidierter Basis
10% oder mehr des gesamten
Nettobetriebsergebnisses der Emittentin
auf konsolidierter Basis entspricht; und
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;
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
58

members of the management board
(Vorstand) and/or the shareholders'
representatives in the supervisory board
(Aufsichtsrat).
(3) Expiry of termination right. The right to
declare Notes 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(2) shall
entitle Noteholders to declare their Notes
due and payable prior to their stated
maturity, save as expressly provided for in
these Terms and Conditions and subject to
applicable mandatory law.
(4) Termination Notice. Any termination in
accordance with § 8(2) shall be made by
means of mail to the Paying Agent. Notices
shall become effective with delivery to the
Paying Agent. The notice shall contain
evidence that the respective Noteholder at
the time of such notice is the holder of the
relevant Notes. Such evidence may be
provided by means of a certificate of the
Noteholder’s depository bank or by other
appropriate means.
§ 9
Prescription Period
The limitation period for claims in respect of
principal of the Notes shall be thirty years,
and in respect of interest three years
respectively, in each case after due date.
§ 10
Paying Agent
(1) Paying Agent. Erste Group Bank AG with its
business address at Graben 21, 1010
Vienna, Austria shall be the initial paying
agent (the "Paying Agent").
(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 Noteholders.
Recht, die Mehrzahl der Mitglieder des
Vorstands und/oder der
Gesellschaftervertreter im Aufsichtsrat zu
bestimmen, erworben haben.
(3) 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(2) genannten Ereignisse darstellen, den
Anleihegläubiger nicht dazu, seine
Teilschuldverschreibungen vorzeitig zur
Rückzahlung fällig zu stellen, es sei denn,
dies ist ausdrücklich in diesen
Anleihebedingungen bestimmt.
(4) Kündigungserklärung. Eine Kündigung nach
§ 8(2) ist schriftlich in deutscher Sprache per
Brief 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
Verjährung
Die Verjährungsfrist aus Ansprüchen auf das
Kapital beträgt dreißig Jahre und aus
Ansprüchen auf Zinsen drei Jahre, jeweils ab
Fälligkeit.
§ 10
Zahlstelle
(1) Zahlstelle. Die Erste Group Bank AG mit der
Geschäftsanschrift Graben 21, 1010 Wien,
Österreich ist die anfängliche Zahlstelle (die
"Zahlstelle").
(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.
59

(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 in the
paying agents or in the specified office of
any Paying Agent will promptly be given to
the Noteholders 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 Notes 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 Austria.
§ 11
Further Issues of Notes, Repurchase,
Cancellation
(1) Further Issues of Notes. The Issuer may -
apart from issues of bonds that do not form a
single series with the Notes - at any time
without the consent of the Noteholders issue
further bonds which have the same Terms
and Conditions as these Notes 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 Notes. The Issuer shall be free to
issue further bonds.
(2) Repurchase. The Issuer may at any time
purchase Notes in the open market or
otherwise and at any price. Notes so
acquired may at the discretion of the Issuer
be held, sold or submitted to the Paying
(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 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 mit Sitz innerhalb der Republik
Österreich handeln wird.
§ 11
Begebung weiterer
Teilschuldverschreibungen, Ankauf,
Entwertung
(1) Begebung weiterer
Teilschuldverschreibungen. Die Emittentin ist
- neben der Emission weiterer
Teilschuldverschreibungen, die mit diesen
Teilschuldverschreibungen keine einheitliche
Serie bilden - berechtigt, jederzeit ohne
Zustimmung der Anleihegläubiger weitere
Teilschuldverschreibungen mit gleicher
Ausstattung (gegebenenfalls mit Ausnahme
des Tages der Emission, des
Verzinsungsbeginns und des
Ausgabepreises) in der Weise zu emittieren,
dass sie mit diesen
Teilschuldverschreibungen eine einheitliche
Schuldverschreibung bilden. In der
Begebung weiterer Anleihen ist die
Emittentin frei.
(2) Rückkauf. Die Emittentin ist berechtigt,
Teilschuldverschreibungen im Markt oder
anderweitig zu jedem beliebigen Preis zu
kaufen. Die von der Emittentin erworbenen
Teilschuldverschreibungen können nach
60

Agent in order to be cancelled. Wahl der Emittentin von ihr gehalten,
weiterverkauft oder bei der Zahlstelle zwecks
Entwertung eingereicht werden.
(3) All Notes completely repaid must be
cancelled without delay and cannot be
reissued or sold again.
§ 12
Listing
It is intended to apply for the admission to
trading of the Notes on the Second
Regulated Market of the Vienna Stock
Exchange.
§ 13
Notices
(1) Notices. All notices concerning the Notes to
the Noteholders 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 fifth day following the date of
publication.
(2) Notice via electronic means. If the Notes are
admitted for trading on any stock exchange,
notices to the Noteholders 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 Notes may be
listed from time to time, for so long as the
Notes 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
fifth day following the date on which the
notice has first been published by all
required electronic means.
(3) Sämtliche vollständig zurückgezahlten
Teilschuldverschreibungen sind unverzüglich
zu entwerten und können nicht wieder
emittiert oder wieder verkauft werden.
§ 12
Börsenotierung
Es ist beabsichtigt, die Zulassung der
Teilschuldverschreibungen zum Handel im
Geregelten Freiverkehr an der Wiener Börse
zu beantragen.
§ 13
Mitteilungen
(1) Mitteilungen. Alle die
Teilschuldverschreibungen 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 fünften Tag
nach der Veröffentlichung als wirksam
erfolgt.
(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
Teilschuldverschreibungen notiert sind,
durch elektronische Veröffentlichung
veröffentlicht werden, solange diese
Notierung fortdauert und die Regeln der
jeweiligen Börse dies erfordern. Jede
Mitteilung gilt mit dem fünften Tag nach der
ersten Veröffentlichung als bekannt
gemacht; falls eine Veröffentlichung in mehr
als einer elektronischen Mitteilungsform
vorgeschrieben ist, ist der Tag maßgeblich,
an dem die Bekanntmachung erstmals in
allen erforderlichen elektronischen
61

(3) Notice via the Clearing System. Notices to
Noteholders may (subject to applicable stock
exchange rules and requirements), so long
as any Global Note representing the Notes 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 Noteholders.
§ 14
Governing Law and Jurisdiction
(1) Governing law. The Notes are governed by
the laws of the Republic of Austria.
(2) Place of Jurisdiction. For all disputes which
may arise out or in connection with the
Notes, 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 Noteholder (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) Place of Jurisdiction in relation to
Consumers. In relation to any dispute of a
consumer with the Issuer out of or in
connection with the Notes (including
disputes in connection with non-contractual
obligations arising out of or in connection
with the Notes) the court being competent in
said matters and for such territory located
either at the place of residence of the
consumer or at the place of the Issuer's
domicile or any other court being competent
due to a statutory provision shall at the
consumer's choice have jurisdiction.
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 Teilschuldverschreibungen
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) Anwendbares Recht. Die
Teilschuldverschreibungen unterliegen
österreichischem Recht.
(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.
(2) Verbrauchergerichtsstände. Für alle
Rechtsstreitigkeiten eines Verbrauchers aus
oder im Zusammenhang mit den
Teilschuldverschreibungen (einschließlich
allfälliger Streitigkeiten im Zusammenhang
mit außervertraglichen Schuldverhältnissen,
die sich aus oder im Zusammenhang mit den
Teilschuldverschreibungen ergeben) gegen
den Emittenten ist nach Wahl des
Verbrauchers das sachlich und örtlich
zuständige Gericht am Wohnsitz des
Verbrauchers oder am Sitz des Emittenten
oder ein sonstiges, aufgrund der
gesetzlichen Bestimmungen zuständiges
62

(3) Place of Performance. Place of performance
shall be Vienna, Republic of Austria.
§ 15
Language
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.
Gericht zuständig.
(3) Erfüllungsort. Erfüllungsort ist Wien,
Republik Österreich.
§ 15
Sprache
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.
63

USE OF PROCEEDS
The Issuer intends to use the net proceeds of the issue of the Notes 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 bank debt, the restructuring of the existing debt
portfolio, terming out Borealis' debt and optimising the overall finance structure is part of this initiative.
64

1. GENERAL
BOREALIS AG
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.
2. 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 (Finland).
1997
Neste sells its 50 per cent shareholding in Borealis equally to OMV Aktiengesellschaft ("OMV")
and to the International Petroleum Investment Company ("IPIC") of Abu Dhabi. Statoil retains
a 50 per cent share.
1998
The Abu Dhabi National Oil Company (ANDOC) 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.
2004
65

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 (GmbH) into a
stock corporation and its new firm name is Borealis AG.
2009
Borealis inaugurates its international innovation headquarters in Linz, Austria.
2010
Borouge 2 starts up. The expansion triples Borouge's total manufacturing capacity to 2 million
tonnes of PE and PP per year.
Borealis completes its major investment in LDPE plant in Stenungsund, Sweden. In June
2010, Borealis inaugurates an over EUR 400 million investment in a new LDPE plant to meet
the growing demand of the worldwide wire and cable market.
2011
Borouge 2, the plant expansion project in Ruwais, Abu Dhabi has reached full performance
levels with start-up in record time.
Borealis starts construction of catalyst plant in Linz, Austria.
2012
Expansion of Base Chemicals business. Borealis acquires the fertilizer producer PEC-Rhin in
Ottmarsheim, France.
66

2. 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.
3. SHARE CAPITAL
The Issuer's share capital (Grundkapital) amounts to EUR 300,000 and is divided into 300,000
no-par value registered shares (nennbetragslose Namensaktien). The share capital of the
Issuer is fully paid-in.
4. CORPORATE GOVERNANCE
The Issuer's shares are not listed or admitted to trading on a regulated market, the Austrian
Corporate Governance Code is not applicable to the Issuer.
5. SHAREHOLDERS
As of 31 December 2011 the Issuer has the following two shareholders: International
Petroleum Investment Company (IPIC) of Abu Dhabi with a direct (3 per cent) and indirect
(61 per cent via IPIC Beta Holdings GmbH) participation of in total 64 per cent, and OMV
Aktiengesellschaft with a direct (3 per cent) and indirect (33 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
64%
(directly and indirectly)
Borealis AG
24.9% (directly)
OMV Aktiengesellschaft
36% (directly and indirectly)
67

IPIC holds a direct ownership of 24.9 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 56.4 per cent of
the voting rights in OMV. Mr Khadem Al Qubaisi is the chairman of the supervisory board of
the Issuer, and Mr David Charles Davies, deputy chairman of the executive board of OMV acts
as the vice chairman of the supervisory board of the Issuer.
5.1 INTERNATIONAL PETROLEUM INVESTMENT COMPANY
IPIC was established by the Government of the Emirate of Abu Dhabi (the “Government”)
rated AA/Aa3 (S&P and Moody’s) pursuant to an Emiri Decree in 1984 with a mandate to
invest globally in energy and energy related industries. The Government owns 100% of IPIC
and appoints all the members of IPIC's board of directors.
IPIC is a long term strategic investor and it currently holds more than 15 investments spanning
across 5 continents. IPIC also undertakes certain projects which are of a strategic nature to
the Government such as the Abu Dhabi Crude Oil Pipeline which is a strategic project to
bypass the congested Strait of Hormuz by providing an overground link between Abu Dhabi’s
key onshore oil fields and a deep-water port located at Fujairah (in the U.A.E.) on the Indian
Ocean.
Certain of IPIC’s key investments include:
� Borealis AG, Austria – 64% stake
� Compañía Española de Petróleos, S.A., Spain – wholly owned
� Nova Chemicals Corp, Canada – wholly owned
� Aabar Investments P.J.S., UAE – 95.47% stake (as at 31st of March, 2012)
� OMV Aktiengesellschaft, Austria – 24.9% stake
� Cosmo Oil Co, Ltd, Japan – 20.8% stake
� Energias de Portugal, S.A.,Portugal – 4.1% stake
5.2 OMV AKTIENGESELLSCHAFT
With group sales of EUR 34.053 billion, a work force of approximately 29,800 employees in
2011, as well as market capitalization of approximately EUR 8 billion, OMV is one of Austria’s
largest listed industrial companies. The two major shareholders are ÖIAG (Austrian State
Holding Company) with a 31.5% stake and IPIC with 24.9% stake. There is, furthermore, a
consortium agreement between ÖIAG and IPIC providing for block voting and certain
restrictions on transfers of shareholdings.
In 2011, OMV generated EBIT of EUR 2.473 billion through three primary business segments:
Refining and Marketing ("R&M"), Exploration and Production and Gas and Power. OMV is
rated A3 (stable) and A- (stable) by Moody’s and Fitch, respectively.
As the leading oil and gas group in Central Europe, OMV is active in Refining and Marketing
(R&M) in 13 countries through the operation of 4 refineries in Austria, Germany and Romania,
as well as the 45% shareholding in Germany’s Bayernoil refineries.
OMV holds stakes in integrated chemical and petrochemical plants:
68

� Borealis AG, 36% owned
� Petrom SA, 51% owned
� EconGas GmbH, 50% owned
� BAYERNOIL refining network, 45% owned
� Turkish company Petrol Ofisi, 97% owned
With the acquisition of a majority stake in the Romanian company Petrom, OMV has become
the largest oil and gas group in Central Europe. OMV now has 4,550 filling stations in
13 countries. The market share of the group in the R&M business segment in the Danube
Region is now 20%. OMV further strengthened its leading position in the European growth belt
through the acquisition of Petrol Ofisi in 2006, Turkey’s leading company in the refining and
marketing business.
6. 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
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 Staoil provided
subordinated shareholder funds in an amount of EUR 103 million to support the Issuer during
a challenging point in the operating cycle, which was fully repaid in 2011.
7. ORGANISATIONAL STRUCTURE
7.1 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 2011:
Company name Country, City Percentage of
shares owned
Borealis A/S Denmark, Copenhagen 100
Borealis Sverige AB Sweden, Stenungsund 100
Borealis AB Sweden, Stenungsund 100
Etenförsörjning i Stenungsund AB Sweden, Stenungsund 80
KB Munkeröd 1:72 Sweden, Stenungsund 100
Borealis Group Services AS Norway, Bamble 100
Borealis Polymers Oy Finland, Porvoo 100
Borealis Technology Oy Finland, Porvoo 100
69

Company name Country, City Percentage of
shares owned
Borealis Financial Services N.V. Belgium, Mechelen 100
Borealis Polymers N.V. Belgium, Beringen 100
Borealis Kallo N.V. Belgium, Kallo 100
Borealis Antwerpen Compounding N.V. Belgium, Zwijndrecht 100
Borealis Brasil S.A. Brazil, Itatiba 80
Borealis Poliolefinas da América do Sul Ltda Brazil, Itatiba 100
Borealis UK Ltd UK, Manchester 100
Borealis Funding Company Ltd Isle of Man, Ramsey 100
Borealis Insurance A/S Denmark, Copenhagen 100
Borealis France S.A.S France, Suressnes 100
Poliolefinas Borealis Espana S.A. Spain, Barcelona 100
Borealis s.r.o. Czech Rep., Prague 100
Borealis Polska Sp Z.o.o. Poland, Warschau 100
Borealis Portugal SGPS S.A. Portugal, Sines 100
Borealis Polymere GmbH Germany, Burghausen 100
Borealis Polyolefine GmbH Austria, Schwechat 100
Borealis Feuerwehr GmbH Austria, Schwechat 100
Borealis Plasticos S.A. de C.V Mexico, Mexico 100
Borealis Asia Ltd Hong Kong, Hong Kong 100
Borealis Italia S.p.A. Italy, Monza 100
Borealis Compounds Inc. US, Rockport 100
Borealis Agrolinz Melamine GmbH Austria, Linz 100
Borealis Agrolinz Melamine Deutschland
GmbH
Borealis Melamine International Asia Pacific
Pte.Ltd.
Germany, Wittenberg 100
Singapore, Singapore 100
LINZER AGRO TRADE GmbH Austria, Linz 100
LINZER AGRO TRADE Hungary Kft. Hungary, Budapest 100
LINZER AGRO TRADE Bulgaria EOOD Bulgaria, Sofia 100
LINZER AGRO TRADE d.o.o. za trgovinu Croatia, Klisa 100
LINZER AGRO TRADE Czech Republic
spol. s.r.o.
Czech Rep., Budweis 100
70

Company name Country, City Percentage of
shares owned
LINZER AGRO TRADE ROMANIA S.R.L Romania, Bucharest 100
LINZER AGRO TRADE d.o.o. Serbia, Belgrade 100
LINZER AGRO TRADE Slovakia s.r.o. Slovakia, Chotin 100
Source: Audited consolidated financial statements as of 31 December 2011
7.2 PRODUCTION SITES
The Borealis Group has production sites worldwide (the following figures relate to the business
year 2011 and are based on information provided by the Issuer):
Austria: Has a production site in Schwechat (close to Vienna). The Innovation Centre
Headquarters is in Linz. The Schwechat facility produces one million tonnes of polyolefins for
the automotive, infrastructure, and advanced packaging industries mainly in Germany, Austria,
Switzerland, and Italy. Ethylene and propylene are supplied via a pipeline from OMV. Linz is
an innovation centre and is used for research and development of new products and
technologies. Linz is also a production site for melamine and plant nutrients.
Capacity Kilotons per annum
PP 435
PE 480
Compound 105
Fertilizer 1200
Malamine 52
Borealis employs a total of 1,661 people in Austria.
Belgium: Has three production locations. Beringen has two PP plants. These plants are
located directly on a major transportation pipeline for incoming feedstocks. The facility located
in Kallo has a propylene dehydrogenation unit and a PP plant. Borealis operates a
compounding plant in Antwerp. The main application areas include wire and cable, film, fibre
and moulding. Borealis holds a share (33 per cent) in Special Polymers Antwerp, a JV with
DuPont for PE production.
Capacity Kilotons per annum
PP 685
PE 40
Propylene 480
Compound 137
A total of 838 persons are employed in Belgium.
71

Brazil: Has two compounding facilities in Itatiba and Triunfo. Both sites produce PP
compounds. Products manufactured here are supplied to the dashboards, panels, doors,
trims, dishwashers, and refrigerator moulders.
Capacity of Itatiba:
Capacity Kilotons per annum
PP Compounds 25
Capacity of Triunfo:
Capacity Kilotons per annum
PP Compounds 35
Borealis employs a total of 133 people in Brazil.
Finland: Has six production units, in a fully integrated petrochemical facility. Feedstock for PE
and PP is produced by a cracker. Main polymer and compound applications include extrusion
coating, for steel pipes, packaging, pipe and some wire and cable. Finland is the only location
where Borealis produces phenol.
Capacity Kilotons per annum
Ethylene 390
Propylene 240
Phenol 185
PE 390
PP 220
Compounds 42
A total of 870 persons are employed in Finland.
France:. Borealis has recently acquired an ammonia and plant nutrients production facility in
Ottmarsheim.
Capacity Kilotons per annum
Ammonia
Nitric Acid
AN/CAN
255
330
360
A total of 180 persons are employed in France.
Germany: Has two PP plants and one high-density polyethylene ("HDPE") plant. At the end of
2007, Borealis completed an investment of EUR 200 million in a Borstar® PP plant. The
72

expansion increased the site's capacity by 80% to 755,000 tonnes per year. Main applications
include infrastructure and advanced packaging. In addition a melamine plant is located in
Piesteritz.
Capacity Kilotons per annum
PP 580
HDPE 175
Melamine 87
A total of 305 persons are employed in Germany.
Italy: Has a production facility for PP compounds for automotive and appliance markets as
well as a customer service centre.
Capacity Kilotons per annum
PP Compounds 30
A total of 69 persons are employed in Italy.
Sweden: Borealis is the only PE producer in Sweden with a cracker facility using naphtha,
propane, ethane and butane as feedstocks. The cracker has capacity of 632,000 tonnes per
year of ethylene and 218,000 tonnes per year of propylene. Feedstock is received via the ship.
Main polymer applications include pipe and wire & cable. An innovation centre focuses on
polymer design, scientific services and research and development. In 2007 Borealis invested
EUR 370 million into a new 350,000 tonnes per year low-density polyethylene plant to supply
the growing pipe and wire and cable market.
Capacity Kilotons per annum
Ethylene 632
Propylene 218
PE 915
A total of 937 persons are employed in Sweden.
United States of America: Has a standalone facility dedicated to PE compound production,
specialising in medium and high voltage insulations and semi-conductive cable grades. In
2007, Borealis upgraded capacity of its semi-con facilities to support growing demand for its
semi-conductive cable grades.
Capacity Kilotons per annum
PE Compounds 65
United Arab Emirates / Asia has the production sites of the Borouge Joint Venture with a
capacity of 2 million tonnes per year, with Borouge 1 and 2 already fully operating and
Borouge 3 expected to go live end 2013.
73

For information on the planned expansion, see "Investments", below.
8. 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.
9. INVESTMENTS
In January 2012, Borealis completed the acquisition of the French fertilizer producer PEC-
Rhin. This acquisition complements Borealis’ existing fertilizer business and is targeted to
enable the Borealis to further grow in Central and Eastern Europe.
Borealis finances its operations and investments through a variety of funding arrangements. At
the end of 2011, the group has committed unutilised credit lines available of EUR 1,108
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, an Austrian Bond, A German Private
Placement (Schuldschein), specific investment financings, and a trade receivables
securitisation programme.
10. 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 Noteholders in
respect of the Notes.
Some preliminary commitments, which are still subject to formal approval of one or more
management bodies have been made which might eventually lead to future investments.
These are not expected to materially impact the Issuer’s ability to meet its obligation to the
Noteholders in respect of the Notes.
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.
74

1. GENERAL
BUSINESS OVERVIEW
Borealis is organized into two business divisions, polyolefins and base chemicals. With more
than 40 years of experience in polyolefins and using the Issuer’s Borstar® technology,
Borealis provides plastic materials and solutions to the infrastructure, advanced packaging
and automotive markets across Europe, the Middle East and Asia. The Issuer’s production
facilities, innovation and service centres work with customers in more than 120 countries to
provide materials that make an essential contribution to society and sustainable development.
As an integrated polyolefins company, Borealis ensures a secure, cost-efficient supply of
hydrocarbon feedstocks for our crackers, and olefins for the Issuer’s PE and PP plants.
Borealis purchases feedstocks from the oil and gas industries and converts these into
ethylene and propylene through its olefin units.
2. MAIN ACTIVITY
2.1 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 the leading global provider of advanced polyolefin plastics solutions
for the pipe industry. The product and service portfolio of Borealis covers 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. Borealis’ leverages its renowned
technical & application competence, plants proximate to customers and most critically the
utilisation of the Borstar® technology, the Issuer’s proprietary process and catalyst technology
that offers simultaneous improvements in conversion economics and in key environmental
aspects (such as source reduction and recyclability). Borealis and Borouge started an initiative
called "Water for the World" in the year 2007; through this program, Borealis contributes to
addressing the global water challenge.
Energy and Communication Cables. As a leading provider of polyolefin compounds for the
global wire and cable industry, Borealis' solutions are widely used in low, medium and highvoltage
energy transmission and distribution cables, in data and communication cables, and in
building and automotive wires. Borealis focuses on developing improved cable production
technology and innovative installation techniques as a direct response to the needs of the
customers across the value chain. Borealis offers a complete range of high performance
products which provide lower costs with higher productivity, enhanced performance for longer
cable life, consistently clean materials, the most resilient protection for demanding cable
applications and consistent expansion for enhanced electrical properties.
Mobility
75

Borealis supplies a wide 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 are pioneering developments in areas including zero gap
applications for bumpers, off-line painted body panels and scratch resistant materials for car
interiors and exteriors.
The trend of lightweight cars has increased and Borealis contributes by virtue of sourcing
lightweight materials for automotive body panels, which have a positive impact on environment
and bring advantages in production. The next step will be the development of body panels
based on Borstar®.
Advanced Packaging
The superior properties and flexibility of Borealis polyolefins make them the advanced
packaging material of choice for applications as diverse as healthcare, courier bags, food
packaging, flexible and rigid transport packaging, bottles, crates, boxes, trays, large containers
and pallets.
2.2 BASE CHEMICALS
The Base Chemicals Group is comprised of the following Business Units:
Feedstocks and Olefins. As an integrated polyolefins company, Borealis aims at ensuring a
secure, cost-efficient supply of hydrocarbon feedstocks for its crackers, which convert these
into ethylene and propylene through its olefin units for the PE and PP plants. Borealis owns
crackers in Finland, Sweden and Abu Dhabi (Borouge) that produce both ethylene and
propylene, while propylene is also produced in a propane dehydrogenation plant in Belgium
and an olefins conversion unit in Abu Dhabi. Besides purchasing from the spot market, the
balance of feedstock and olefins required for Borealis' plants and those of its joint ventures are
sourced from its owners or joint venture partners. A range of co-products from the steam
cracking process such as pygas and butadiene are also sold to external markets. Borealis has
a competitive advantage with its steam crackers, as they have been designed with flexibility to
utilise feedstocks other than naphtha, most notably ethane and propane. This means Borealis
can take advantage of favourable price differentials to generate a cost advantage, which are
often passed on to the end consumer. In addition to the advantage of flexible feed cracking,
Borealis has a series of underground storage "caverns" at Borealis' Swedish facility, which
allows Borealis to further leverage any feedstock price arbitrage within the market.
Melamine and Fertilizer. Borealis is a leading provider of plant nutrients in the Danube
Region. Based on the infrastructure in Linz, a production facility fully integrated into a large
industrial complex, and the recently acquired ammonia and plant nutrient production facilities
in Ottmarsheim Borealis’ competitive advantage is its location on the Danube, providing a cost
effective distribution channel up river into Germany as well as France and down river into
Eastern Europe, where Borealis enjoys substantial brand recognition and market position
through its brand "Linzer Ware".
Phenol & 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. Phenol is used in adhesives, construction materials, carpets, CDs, DVDs, mobile
phones and household appliances. Borealis is the leading phenol producer in the Nordic and
76

Baltic regions. Acetone is commonly used in solvents for paints, acrylics, fibres and
pharmaceuticals. Cumene is a feedstock for other chemical processes.
3. NEW PRODUCTS AND ACTIVITIES
3.1 INNOVATION
Borealis’ strong market position has largely been achieved through its leading-edge Borstar®
technology and its continuous investment in research and development. Approximately 30%
per cent of Borealis’ research and development budget is dedicated to reaching beyond the
customers' current challenges to deliver tomorrow’s solutions. Borealis’ polymer research and
product development focuses on high-performance, cost-effective, differentiated polymers.
Approximately 10% of Borealis' workforce is allocated to the innovation. The Technology
organization is located at three sites at three Innovation Centers in Austria, Finland and
Sweden, which serves to reduce the time to market for new products.
3.2 BORSTAR® TECHNOLOGY
The Borstar® technology is built on process and catalyst technology development. The
Borstar® PE and PP capacity expansion in both Europe and the Middle East are a core
aspect of the Borealis and Borouge strategy. The most significant growth plan entails an
increase of Borouge production capacity in Abu Dhabi to 4.5 million tonnes of Borstar®
polyolefins per year. Slated for completion around 2014, the project will introduce Borstar® PP
to the complex.
The mission to be a leading supplier of innovative value-creating plastics solutions for PE and
PP rests largely on three key competences that Borealis continues to develop and invest in
heavily. These principles comprise the Borstar® innovation platform, which consists of:
� Multimodal PE and PP polymerisation processes,
� Several tools enabling innovative molecular design,
� Post reactor polymer modification
The latter includes selective cross linking: a process that significantly extends key PE
properties to enable its use in some extremely demanding applications that are at the heart of
infrastructure in modern society. In parallel to these different steps of product design,
intellectual protection for the different levels is also sought as indicated in the following figure.
Catalyst Process Polymer Conversion Application
77

1. GENERAL
MARKETS AND SECTOR ENVIRONMENT
While Europe has historically been Borealis’ core market, the Issuer today acts more global
with production facilities, innovation centres and service centres serving customers in more
than 120 countries.
Polyolefins and associated products represented in 2011 approximately 67 per cent of
Borealis' sales while base chemicals and associated products generated approximately 32 per
cent of sales (source: Annual Report 2011).
Borealis’ most important geographic markets in terms of 2011 based on revenue contribution
were Europe (84 per cent of revenues in 2011), the Middle East & Asia (7 per cent of
revenues in 2011) and the United States (3 per cent of revenues in 2011).
The following chart shows a breakdown of Borealis’ revenues in 2011.
2011A Revenue by Geography: € 7,096 mm
Middle East
& Asia
7%
USA
3%
Non EU
countries in
Europe
10%
Other
regions
6%
Source: Audited consolidated financial statements as of 31 December 2011 – 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.
2. POLYOLEFINS
EU
countries
74%
2011A Revenue by Segment: € 7,096 mm
Base
Chemicals
32%
Non -
allocated
1%
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
shows Borealis’ polyolefin capacity in kilotons per annum in 2011 2 :
2 Includes the acquisition of Qattor in Brazil and Sunoco PP in the US by Braskem
Polyolefins
67%
78

World 0 2 4 6 8 10 Europe
LyondellBasell
SINOPEC
ExxonMobil
Source: CMAI
Dow
SABIC
Braskem
CNPC
Borealis*
Total
Ineos
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.
3. BASE CHEMICALS
3.1 MELAMINE AND PLANT NUTRIENTS
Borealis is the European leader in the Melamine business with 25 per cent market share. It
also licenses its global leading high pressure Melamine process technology to the market.
Melamine is mainly used in the wood working industry (for laminate flooring, particleboards for
furniture, etc.). 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 on the Danube and Ottmarsheim on the Rhine provides a distribution channel up river to
Germany and Benelux and down river into Eastern Europe. The issuer has built a strong
market position via its own distribution network LINZER AGRO TRADE GmbH.
3.2 PHENOL AND AROMATICS
LyondellBasell
Borealis
Polimeri
ExxonMobil
Repsol
Borealis is the only producer in the Nordic and Baltic regions and, thus, the leading phenol
producer in the region (source: IHS). 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.
Ineos
SABIC
Dow
Total
TVK
0 2 4 6 8 10
79

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).
1. 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 30 June 2015
Daniel James Shook Chief financial officer 31 December 2015
Herbert Willerth Deputy chief executive; executive
vice president, operations
Gerd Löbbert Executive vice president,
polyolefins
Markku Korvenranta Executive vice president, base
chemicals
30 June 2014
31 December 2014
31 October 2015
Source: Extract from the Austrian Companies Register dated 12 June 2012 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 Principal activities outside the Issuer
Mark Garrett � Member of the board of directors of Nova
80

Name Principal activities outside the Issuer
Gerd Löbbert None
Daniel James Shook None
Chemicals, Corp
� Vice chairman of the board of directors of Abu Dhabi
Polymers Company Limited
� Member of the Tacaamol Project Committee
� Managing Director of Aabar Automotives GmbH and
Aabar Europe Holdings GmbH
� Managing Director of Nova Chemicals Holding
GmbH
Herbert Willerth � Board member of The Federation of Austrian
Industries – Lower Austria
� Management Board Member Abu Dhabi Polymers
Company Limited
� President of GFKT Gesellschaft zur Förderung von
Kunststofftechnik
� Management Board Member of Borouge Pte Ltd
Markku Korvenranta � Management Board Member of Abu Dhabi Polymers
Company Ltd
Source: Information provided by the members of the management board
2. 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 Principal activities outside the Issuer Appointed as of
Khadem Al Qubaisi Board Member and Managing Director of
International Petroleum Investment
21 February 2012
81

Name Principal activities outside the Issuer Appointed as of
Company
Chairman of Aabar Investments PJS
Chairman of Aabar Properties
Chairman of NOVA Chemicals Corporation
Chairman of Compañía Española de
Petróleos SA
Chairman of the Abu Dhabi National Takaful
Co. PSC
Chairman of Arabtec Holdings P.J.S.C
Chairman of First Energy Bank
Vice Chairman of Unicredit SpA.
Board Member of Abu Dhabi National
Chemicals Company P.J.S.C.
(ChemaWEyaat)
Board Member of Emirates Investment
Authority
David Charles Davies Deputy CEO and chief financial officer of
OMV Aktiengesellschaft
Member of supervisory board of Wiener
Börse AG
Deputy Chairman of the Supervisory Board,
Petrom S.A., Bucharest
Deputy Chairman of the Supervisory Board,
Petrol Ofisi A.S., Istanbul
Mohamed Al Mehairi Vice Chairman Pak-Arab Refinery Ltd.
Board Member of NOVA Chemicals
Corporation
Board Member of Aabar Investments PJS
21 February 2012
21 February 2012
82

Name Principal activities outside the Issuer Appointed as of
Mohamed Abdulla Al-Azdi CEO, Abu Dhabi National Chemicals
Company (ChemaWEyaat)
Manfred Leitner Member of the Supervisory Board, Petrom
S.A., Bucharest
Member of the Supervisory Board, Petrol
Ofisi A.S., Istanbul
Chairman of the Supervisory Board, Erdöl
Lagergesellschaft m.b.H, Lannach
Chairman of the Supervisory Board, OMV
Supply & Trading AG, Zug
Director of OMV Trading Services ltd,
London
OMV Shareholder Representative, Bratislava
Schwechat Pipeline GmbH, Vienna
21 February 2012
21 February 2012
Source: Extract from the Austrian Companies Register dated 12 June 2012 and information provided by the Issuer -- According to
information provided by the Issuer, the composition of the supervisory board of the Issuer changed as of 21 February 2012. Mr
Mohamed Al Khaja has been replaced by Mr Mohamed Abdulla Al-Azdi on 3 August 2010 and Mr Gerhard Roiss by Mr Manfred
Leitner on 21 February 2012.
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;
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- 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.
The audit committee consists of the following persons:
Name Position
Mohamed Abdulla Al-Azdi 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
3. ADMINISTRATIVE, MANAGEMENT, AND SUPERVISORY BODIES
CONFLICTS OF INTERESTS
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.
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1.1 KEY FIGURES
SELECTED FINANCIAL INFORMATION
The financial data provided below has been published in the Issuer's press release on the Q1
figures dated 11 May 2012:
Key figures in EUR million
(unaudited, rounded)
Q1 2012 Q1 2011
Net Sales 1,882 1,859
Net profit 140 174
Reduction / (increase) in net
interest-bearing debt
(186) (195)
Gearing (1) 40% 43%
Source: Accounting system of the Issuer for first quarter of the business year 2012
(1) Gearing is calculated as current and non-current loans borrowings minus cash and cash equivalents divided by
total equity.
The financial data provided below has been derived from the Issuer's audited consolidated
financial statements for the business years ended 31 December 2011 and 31 December 2010,
which were prepared in accordance with IFRS.
Key figures in EUR million
(rounded)
Financial year 2011 Financial year 2010
Net Sales 7,096 6,269
Net profit of the year 507 333
EBITDA (1) 569 610
Gearing (2) 35% 37%
Total Assets 6,128 5,630
(1) EBITDA is calculated as operating profit plus depreciation and amortisation.
(2) Gearing is calculated as current and non-current loans borrowings minus cash and cash equivalents divided by
total equity.
1.2 RECENT EVENTS
Since 31 December 2011, there are no recent events particular to the Issuer which are
relevant to a material extent to the evaluation of the Issuer’s solvency.
1.3 PROFIT FORECASTS OR ESTIMATES
The Issuer does not provide any profit forecasts or estimates in connection with the Offering.
85

1.4 SIGNIFICANT CHANGES, MATERIAL ADVERSE CHANGES, TRENDS
There has been no significant change in the financial or trading position of the Issuer or the
Borealis Group since 31 December 2011, no material adverse changes in the Issuer's
prospects since 31 December 2011 and the Issuer is not aware of any trends, uncertainties,
demands, commitments or events that are reasonably likely to have a material effect on the
Issuer's prospects for at least the current financial year.
86

1. AUSTRIA
TAXATION
This section on taxation contains a brief summary of the Issuer's understanding with regard to
certain important principles which are of significance in connection with the purchase, holding
or sale of the Notes in the Republic of Austria. This summary does not purport to exhaustively
describe all possible tax aspects and does not deal with specific situations which may be of
relevance for certain potential investors. The following comments are rather of a general
nature and included herein solely for information purposes. These comments are not intended
to be, nor should they be construed to be, legal or tax advice. This summary furthermore, only
refers to investors which are subject to unlimited (corporate) income tax liability in Austria. It is
based on the currently valid tax legislation, case law and regulations of the tax authorities, as
well as their respective interpretation, all of which may be amended from time to time. Such
amendments may possibly also be effected with retroactive effect and may negatively impact
on the tax consequences described. It is recommended that potential purchasers of the Notes
consult with their legal and tax adviser as to the tax consequences of the purchase, holding or
sale of the Notes. Tax risks resulting from the Notes shall in any case be borne by the
purchaser. For the purposes of the following it is assumed that the Notes are legally and
factually offered to an indefinite number of persons.
General remarks
Individuals having a permanent domicile (Wohnsitz) and/or their habitual abode (gewöhnlicher
Aufenthalt) in Austria are subject to income tax (Einkommensteuer) in Austria on their
worldwide income (unlimited income tax liability; unbeschränkte Einkommensteuerpflicht).
Individuals having neither a permanent domicile nor their habitual abode in Austria are subject
to income tax only on income from certain Austrian sources (limited income tax liability;
beschränkte Einkommensteuerpflicht).
Corporations having their place of effective management (Ort der Geschäftsleitung) and/or
their legal seat (Sitz) in Austria are subject to corporate income tax (Körperschaftsteuer) in
Austria on their worldwide income (unlimited corporate income tax liability; unbeschränkte
Körperschaftsteuerpflicht). Corporations having neither their place of effective management
nor their legal seat in Austria are subject to corporate income tax only on income from certain
Austrian sources (limited corporate income tax liability; beschränkte Körperschaftsteuerpflicht).
Both in case of unlimited and limited (corporate) income tax liability, Austria's right to tax may
be restricted by double taxation treaties.
Income taxation of the Notes
With the passing of the Budget Accompanying Act of 2011 (Budgetbegleitgesetz 2011), the
Austrian legislator intended to comprehensively realign the taxation of financial instruments, in
particular with regard to capital gains. Pursuant to the newly worded sec. 27(1) of the Austrian
Income Tax Act, the term investment income (Einkünfte aus Kapitalvermögen) comprises:
� income from the letting of capital (Einkünfte aus der Überlassung von Kapital) pursuant
to sec. 27(2) of the Austrian Income Tax Act, including dividends and interest;
� income from realised increases in value (Einkünfte aus realisierten Wertsteigerungen)
pursuant to sec. 27(3) of the Austrian Income Tax Act, including gains from the sale,
redemption and other realisation of assets that lead to income from the letting of capital,
zero coupon bonds and also broken-period interest; and
87

� income from derivatives (Einkünfte aus Derivaten) pursuant to sec. 27(4) of the Austrian
Income Tax Act, including cash settlements, option premiums received and income from
the sale or other realisation of forward contracts like options, futures and swaps and
other derivatives such as index certificates.
Also the withdrawal of the Notes from a bank deposit (Depotentnahme) and circumstances
leading to Austria's loss of taxation right regarding the Notes vis-à-vis other countries, e.g., a
relocation from Austria (Wegzug), are in general deemed to constitute a sale (cf. sec. 27(6)(1)
of the Austrian Income Tax Act).
Individuals subject to unlimited income tax liability in Austria holding the Notes as a nonbusiness
asset are subject to income tax on all resulting investment income pursuant to
sec. 27(1) of the Austrian Income Tax Act. In case of investment income with an Austrian
nexus (inländische Einkünfte aus Kapitalvermögen), basically meaning income that is paid by
an Austrian paying agent (auszahlende Stelle) or an Austrian custodian agent (depotführende
Stelle), the income is subject to a withholding tax of 25 per cent; no additional income tax is
levied over and above the amount of tax withheld (final taxation pursuant to sec. 97(1) of the
Austrian Income Tax Act). In case of investment income without an Austrian nexus, the
income must be included in the income tax return and is subject to a flat income tax rate of
25 per cent In both cases, upon application, the option exists to tax all income subject to the
tax rate of 25 per cent at the lower progressive income tax rate (option to regular taxation
pursuant to sec. 27a(5) of the Austrian Income Tax Act). Pursuant to sec. 27(8) of the Austrian
Income Tax Act, losses from investment income may not be offset with other types of income.
Negative income subject to the flat tax rate of 25 per cent may not be offset with income
subject to the progressive income tax rate (this equally applies in case of an exercise of the
option to regular taxation). Further, an offsetting of losses from realised increases in value and
from derivatives with (i) interest and other claims against credit institutions and (ii) income from
Austrian or foreign private law foundations and comparable legal estates (privatrechtliche
Stiftungen und damit vergleichbare Vermögensmassen) is not permissible.
Individuals subject to unlimited income tax liability in Austria holding the Notes as a business
asset are subject to income tax on all resulting investment income pursuant to sec. 27(1) of
the Austrian Income Tax Act. In case of investment income with an Austrian nexus (as
described above) the income is subject to a withholding tax of 25 per cent While this
withholding tax has the effect of final taxation for income from the letting of capital, income
from realised increases in value and income from derivatives must on the other hand be
included in the income tax return (nevertheless flat income tax rate of 25 per cent). In case of
investment income without an Austrian nexus, the income must always be included in the
income tax return (flat income tax rate of 25 per cent). In both cases upon application the
option exists to tax all income subject to the tax rate of 25 per cent at the lower progressive
income tax rate (option to regular taxation pursuant to sec. 27a(5) of the Austrian Income Tax
Act). Pursuant to sec. 6(2)(c) of the Austrian Income Tax Act, depreciations to the lower fair
market value and losses from the sale, redemption and other realisation of financial assets
and derivatives in the sense of sec. 27(3) and (4) of the Austrian Income Tax Act, which are
subject to the special tax rate of 25 per cent, are primarily to be offset against income from
realised increases in value of such financial assets and derivatives and with appreciations in
value of such assets; only half of the remaining negative difference may be offset against
other types of income (and carried forward).
Corporations subject to unlimited corporate income tax liability in Austria are subject to
corporate income tax on interest from the Notes at a rate of 25 per cent In case of investment
income with an Austrian nexus (as described above) the income is subject to a withholding tax
of 25 per cent, which can be credited against the corporate income tax liability. However,
under the conditions set forth in sec. 94(5) of the Austrian Income Tax Act no withholding tax
is levied in the first place. Income from the sale of the Notes is subject to corporate income tax
of 25 per cent Losses from the sale of the Notes can be offset against other income (and
carried forward).
88

Private foundations pursuant to the Austrian Private Foundations Act fulfilling the prerequisites
contained in sec. 13(3) and (6) of the Austrian Corporate Income Tax Act and holding the
Notes as a non-business asset are subject to interim taxation at a rate of 25 per cent on
interest income, income from realised increases in value and income from derivatives. In case
of investment income with an Austrian nexus (as described above) the income is subject to a
withholding tax of 25 per cent, which can be credited against the tax falling due. Under the
conditions set forth in sec. 94(12) of the Austrian Income Tax Act no withholding tax is levied.
As of 1 January 2013, pursuant to sec. 93(6) of the Austrian Income Tax Act, the Austrian
custodian agent will be obliged to automatically offset negative investment income against
positive investment income, taking into account all of a taxpayer's bank deposits with the
custodian agent (for the period from 1 April 2012 to 31 December 2012 grandfathering
provisions exist). If negative and at the same time or later positive income is earned, then the
negative income is to be offset against the positive income. If positive and later negative
income is earned, then the withholding tax on the positive income is to be refunded, with such
refund being limited with 25 per cent of the negative income. In certain cases, the offsetting is
not permissible. The custodian agent has to issue a written confirmation on the offsetting of
losses for each bank deposit.
EU withholding tax
Sec. 1 of the Austrian EU Withholding Tax Act (EU-Quellensteuergesetz) – which transforms
into national law the provisions of Council Directive 2003/48/EC of 3 June 2003 on taxation of
savings income in the form of interest payments – provides that interest payments paid or
credited by an Austrian paying agent to a beneficial owner who is an individual resident in
another Member State (or in certain dependent or associated territories) are subject to a
withholding tax of 35 per cent if no exception from such withholding applies. Sec. 10 of the
Austrian EU Withholding Tax Act provides for an exemption from withholding tax where the
beneficial owner presents to the paying agent a certificate drawn up in his/her name by the
competent authority of his/her Member State of residence for tax purposes, indicating the
name, address and tax or other identification number or, failing such, the date and place of
birth of the beneficial owner, the name and address of the paying agent, and the account
number of the beneficial owner or, where there is none, the identification of the security; such
certificate shall be valid for a period not exceeding three years.
Austrian inheritance and gift tax
Austria does not levy an inheritance and gift tax anymore.
However, it should be noted that certain gratuitous transfers of assets to (Austrian or foreign)
private law foundations and comparable legal estates (privatrechtliche Stiftungen und damit
vergleichbare Vermögensmassen) are subject to foundation tax (Stiftungseingangssteuer)
pursuant to the Austrian Foundation Tax Act (Stiftungseingangssteuergesetz). Such tax is
triggered if the transferor and/or the transferee at the time of transfer have a domicile, their
habitual abode, their legal seat or their place of effective management in Austria. Certain
exemptions apply in case of a transfer mortis causa, in particular for bank deposits, publicly
placed bonds and portfolio shares (i.e., less than 1 per cent). The tax basis is the fair market
value of the assets transferred minus any debts, calculated at the time of transfer. The tax rate
is in general 2.5 per cent, with a higher rate of 25 per cent applying in special cases.
In addition, a special notification obligation exists for gifts of money, receivables, shares in
corporations, participations in partnerships, businesses, movable tangible assets and
intangibles. The notification obligation applies if the donor and/or the donee have a domicile,
their habitual abode, their legal seat or their place of effective management in Austria. Not all
gifts are covered by the notification obligation: In case of gifts to certain related parties, a
threshold of EUR 50,000 per year applies; in all other cases, a notification is obligatory if the
value of gifts made exceeds an amount of EUR 15,000 during a period of five years.
Furthermore, gratuitous transfers to foundations falling under the Austrian Foundation Tax Act
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described above are also exempt from the notification obligation. Intentional violation of the
notification obligation may lead to the levying of fines of up to 10 per cent of the fair market
value of the assets transferred.
Further, it should be noted that gratuitous transfers of the Notes can trigger income tax on the
level of the transferor pursuant to sec. 27(6)(1) of the Austrian Income Tax Act (see above).
2. LUXEMBOURG
The following summary is of a general nature only and is based on the laws presently in force
in Luxembourg, though it is not intended to be, nor should it be construed to be, legal or tax
advice. The information contained within this section is limited to Luxembourg withholding tax
issues and prospective investors in the Notes should therefore consult their own professional
advisers as to the effects of state, local or foreign laws, including Luxembourg tax law, to
which they may be subject.
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 withholding tax or a tax of a similar nature refers to Luxembourg tax law and/or
concepts only.
Withholding Tax
(i) Non-resident holders of Notes
Under Luxembourg general tax laws currently in force and subject to the laws of 21 June
2005, as amended (the Laws), there is no withholding tax on payments of principal, premium
or interest made to non-resident holders of Notes, nor on accrued but unpaid interest in
respect of the Notes, nor is any Luxembourg withholding tax payable upon redemption or
repurchase of the Notes held by non-resident holders of Notes.
Under the Laws implementing the Council Directive 2003/48/EC of 3 June 2003 on taxation of
savings income in the form of interest payments and ratifying the treaties entered into by
Luxembourg and certain dependent and associated territories of EU Member States (the
Territories), payments of interest or similar income made or ascribed by a paying agent
established in Luxembourg to or for the immediate benefit of an individual beneficial owner or
a residual entity, as defined by the Laws, which is resident of, or established in, an EU
Member State (other than Luxembourg) or one of the Territories will be subject to a
withholding tax unless the relevant recipient has adequately instructed the relevant paying
agent to provide details of the relevant payments of interest or similar income to the fiscal
authorities of his/her/its country of residence or establishment, or, in the case of an individual
beneficial owner, has provided a tax certificate issued by the fiscal authorities of his/her
country of residence in the required format to the relevant paying agent. Responsibility for the
withholding of the tax will be assumed by the Luxembourg paying agent. Payments of interest
under the Notes coming within the scope of the Laws will be subject to a withholding tax at a
rate of 35%.
(ii) Resident holders of Notes
Under Luxembourg general tax laws currently in force and subject to the law of 23 December
2005, as amended (the Law), there is no withholding tax on payments of principal, premium or
interest made to Luxembourg resident holders of Notes, nor on accrued but unpaid interest in
respect of Notes, nor is any Luxembourg withholding tax payable upon redemption or
repurchase of Notes held by Luxembourg resident holders of Notes.
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%. Such withholding tax will
90

e 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. Payment of interest under the Notes coming within
the scope of the law will be subject to a withholding tax at a rate of 10%.
91

1. SUBSCRIPTION PERIOD
SUBSCRIPTION AND SALE
The Notes 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 (the "Offer"). The Public Offer will start on 25 June 2012
and end on 27 June 2012 (the "Subscription Period"), or such earlier date as the Issuer may
determine in agreement with the Joint-Lead Managers. The Joint-Lead Managers and the
other Syndicate Banks (together, the "Managers") are entitled to reduce or decline
subscriptions and to close the subscription period early.
2. ISSUE PRICE AND ITS DETERMINATION
The issue price (the "Issue Price") is currently not fixed and is expected to be between 98 per
cent and 102 per cent of the nominal amount. The Issue Price may be calculated by adding
the selling commission for private investors of 1.5 percentage points to the price for
institutional investors (the "Re-offer Price") which will be determined on the basis of interest
rates, maturity, yield and demand by institutional investors in the course of a book-building
procedure on or around 20 and 21 June 2012.The Issue Price will be published prior to the
beginning of the Subscription Period (see "PUBLICATION OF INFORMATION WHICH IS
RELEVANT FOR THE OFFER" below). The Managers are entitled to give discounts 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 orders from institutional investors. The Issuer and the
Joint-Lead Managers will decide upon the allocation of the Notes to institutional investors.
Subsequently, the Joint-Lead Managers determine in consultation with the Issuer the Issue
Price at which the Notes are issued as well as the coupon applicable to the Notes.
3. CONDITIONS TO WHICH THE OFFER IS SUBJECT
The Offer is subject to the condition as set out in the Subscription Agreement that Managers
may terminate the Subscription Agreement in case of the occurrence of certain events, e.g. if
a change in the national or international, financial, political, legal or fiscal conditions or force
majeure occurred which could materially affect the market price of the Notes.
4. AGGREGATE NOMINAL AMOUNT OF THE OFFER
The aggregate nominal amount of the issue of Notes will be determined by the Issuer in
agreement with the Joint-Lead Managers within the book-building procedure which is
expected to take place on or around 20 and 21 June 2012. The allotment of Notes to
institutional investors and the Syndicate Banks will be effected by the Joint-Lead Managers
upon consultation with the Issuer. Thereafter, information on the aggregate nominal amount
(together with the issue price, coupon, yield, net proceeds and the Syndicate Banks) will be
filed with the CSSF and published on the website of the Luxembourg stock exchange and on
the website of the Issuer (www.borealisgroup.com).
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5. SALE TO RETAIL INVESTORS
The sale of Notes to retail investors at the Issue Price takes place during the Subscription
Period. Interested investors which intend to subscribe for Notes in Austria and/or Luxemburg
may apply for subscription upon the start of the subscription period at their respective
depository bank in Austria and/or Luxemburg, i.e. the bank in Austria and/or Luxemburg where
the interested investor has his securities account. The Issuer, the Managers and certain
further banks participating in the distribution of the Notes reserve the right to shorten or refuse
subscriptions. In case of a reduction of subscriptions the access amounts paid by applicants
will be refunded by the depository banks of the respective investors. When all Notes have
been subscribed for, generally no further subscriptions will be accepted. The subscribers will
be informed on the number of Notes allotted to them via their security custodians. Noteholders
are free to dispose of their Notes in accordance with the rules of the Clearing Systems. There
are no pre-emption rights.
6. MINIMUM AND MAXIMUM SUBSCRIPTION AMOUNT
The minimum subscription amount corresponds to the minimum denomination of the Notes
which is EUR 1,000. No maximum subscription amount has been set.
7. FORM, CENTRAL SECURITIES DEPOSITARY
The Notes 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
Note representing the Notes will be deposited with the Oesterreichische Kontrollbank
Aktiengesellschaft, Am Hof 4, 1010 Vienna, Austria, in its function as Central Securities
Depository. The Noteholders are entitled to joint ownership interests in the global note
representing the Notes in accordance with Austrian law.
8. PLACEMENT AND UNDERWRITING
Pursuant to a subscription agreement (Übernahmevertrag) to be entered into on or about
26 June 2012 (the "Subscription Agreement") between the Issuer and the Managers, the
Managers will agree, subject to certain conditions, to subscribe the total aggregate nominal
amount of the Notes of up to EUR 200,000,000. The management commission will be 0.35 per
cent of the aggregate nominal amount.
The Issuer has agreed to reimburse the Managers for certain expenses incurred in connection
with the issue of the Notes. The total expenses of the Offer (including the management
commission and ancillary expenses, e.g. costs for marketing, legal advice and listing) are
estimated to be not more than 0.5% of the aggregate nominal amount of the Notes. The net
total proceeds of the Offer will amount to the aggregate nominal amount of the Notes issued,
multiplied by the Issue Price (as defined above) total expenses of the Offer.
9. PUBLICATION OF INFORMATION WHICH IS RELEVANT FOR THE OFFER
Certain information (e.g. the Syndicate Banks, the aggregate nominal amount, the Issue Price,
coupon, yield and net proceeds) which is expected to be available at 21 June 2012, i.e. after
the approval and publication of this Prospectus, will prior to the commencement of the
Subscription Period be filed with the CSSF and published on the websites of the Luxembourg
93

Stock Exchange (www.bourse.lu) and the Issuer (www.borealisgroup.com) by the Issuer. To
the extent legally required certain information will be published in the Luxemburger Wort.
10. DELIVERY OF NOTES
The Notes will be delivered to such investors which have transferred the amount necessary for
the subscription of Notes to the depository bank at the issue date. The depository bank will
book the respective amount of Notes on the investor's securities account. The issue date is
2 July 2012. The delivery of definitive notes is excluded.
94

1. GENERAL
SELLING RESTRICTIONS
In addition to the selling restrictions below, the distribution of this Prospectus and the offer of
the Notes 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.
2. 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 Notes to the public in that Relevant Member State prior to
the publication of a prospectus in relation to the Notes 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 Notes 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 Notes to the public” in relation to
any Notes 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 Notes to be offered so as to
enable an investor to decide to purchase or subscribe the Notes, 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.
95

3. 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 Notes described herein in any province or territory of
Canada. No securities commission or similar authority in Canada has reviewed or in any way
passed any decision upon this document or the merits of the Notes described herein, and any
representation to the contrary is an offence.
4. NOTICE TO INVESTORS IN JAPAN
The Notes 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 Notes, 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.
5. 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 Notes 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 Notes 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 Notes 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 Notes in, from or otherwise involving the United
Kingdom.
96

6. NOTICE TO INVESTORS IN THE UNITED STATES OF AMERICA AND ITS
TERRITORIES
The Notes 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 Notes, and will offer and sell the
Notes (i) as part of its distribution at any time and (ii) otherwise until 40 days after the
completion of the distribution of all the Notes 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 Notes, 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 Notes, it will have sent to each distributor,
dealer, or person receiving a selling concession, fee or other remuneration that purchases
Notes from it during the restricted period a confirmation or notice to substantially the following
effect:
"The Notes 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 Notes 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.
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GENERAL INFORMATION
1. LISTING AND ADMISSION TO TRADING
The Issuer may apply for admission to listing of the Notes on the Second Regulated Market
(Geregelter Freiverkehr) of the Vienna Stock Exchange. Although the Issuer expects to be
granted admission to listing for the Notes, the Issuer cannot guarantee that such admission
will indeed be granted. The first day of listing for the Notes is expected to be on or about
2 July 2012. Other senior unsecured notes (ISIN: AT0000A0H0V3) of the Issuer are listed in
the Second Regulated Market (Geregelter Freiverkehr) of the Vienna Stock Exchange.
2. STATUTORY AUDITORS
The German language consolidated financial statements incorporated in an English translation
version by reference hereto have been audited by Ernst&Young
Wirtschaftsprüfungsgesellschaft m.b.H., Wagramer Straße 19, 1220 Wien, Austria
(Telephone: +43 (1) 211 70-0) ("E&Y"), as indicated in the audit opinion with respect thereto.
E&Y has rendered unqualified audit reports on the consolidated financial statements of the
Issuer for the years ended 31 December 2010 and 31 December 2011 on 17 February 2011
and 16 February 2012. E&Y 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 reappointed
during the period covered by the historical financial information.
3. AUTHORISATION
The Issuer has obtained all necessary consents, approvals and authorisations in Austria in
connection with the issue of the Notes. The Notes will be issued in accordance with a
resolution of the supervisory board of the Issuer passed on 19 March 2012.
4. CLEARING AND SETTLEMENT
The Notes 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.
5. RATINGS
6. YIELD
Neither the Issuer nor the Notes are rated.
The yield of the Notes 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. The calculation of the
yield is based on actual/actual (pursuant to the calculation method defined by ICMA).
7. REPRESENTATION OF NOTEHOLDERS
The Terms and Conditions of the Notes contain no provisions on the representation of the
Noteholders. In certain cases, a joint representative (Kurator) may be appointed to represent
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the Noteholders before the Austrian courts in accordance with the Austrian Curator Act
(Kuratorengesetz) (e.g. if rights of the Noteholders are likely to be affected due to a lack of
common representation).
8. 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.
9. OTHER
This Prospectus includes neither a statement nor a report from a third party as an expert.
10. INTEREST OF NATURAL AND LEGAL PERSONS INVOLVED IN THE
ISSUE/OFFER
The Managers participate in the issue of Notes in the regular course of their business as credit
institutions in order to generate commissions turnover. The Managers and/or their subsidiaries
may from time to time in the ordinary course of their business, severally or jointly have further
business relationships with the Issuer, e.g. with respect to investment advice or financial
transactions, and may keep such business relationships. Furthermore, there may exist finance
agreements among the Issuer and one or more of the Managers. The Issuer may in the
course of its ordinary funding activities use the net proceeds of the issue of Notes for the
partial or entire redemption of such existing financings with the Managers. In the view of the
Issuer, there are no further possible conflicts of interest.
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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.
BAM Borealis Agrolinz Melamine 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 1,600
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 and latex paints.
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 (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 cumene is used to produce phenol and
acetone.
DVD Digital Versatile Disc
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EIB European Investment Bank
EUR Euro
HDPE High density polyethylene. Coming from a low pressure process 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 hydrocarbon like ethylene and propylene.
PE Polyethylene. Polyethylenes (or polythenes) are thermoplastic polymers
consisting mainly of ethylene (C2H4), which is 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
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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 naphtharange
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.
Syndicate Banks Means the banks which will be parties to the Subscription Agreement other
than the Joint-Lead Managers and information on which is expected to be
available at 21 June 2012, i.e. after the approval and publication of this
Prospectus and will prior to the commencement of the Subscription Period be
filed with the CSSF and published on the websites of the Luxembourg Stock
Exchange (www.bourse.lu) and the Issuer (www.borealisgroup.com) by the
Issuer
UAE United Arab Emirates
U.S. United States of America
W&C wire and cable
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UniCredit Bank Austria AG
Schottengasse 6
A-1010 Vienna
Austria
ISSUER
Borealis AG
Wagramerstraße 17-19
1220 Vienna
Austria
JOINT-LEAD MANAGERS
PAYING AGENT
Erste Group Bank AG
Graben 21
1010 Vienna
Austria
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
Ernst& Young
Wirtschaftsprüfungsgesellschaft
m.b.H
Wagramer Straße 19
1220 Vienna
Austria
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