1. Which ABB entities have issued public bonds?
ABB Ltd and ABB International Finance Ltd have issued public bonds. In addition, ABB Capital B.V. has issued certain private placements.
2. Could you give us an overview of the legal structure showing the relationship between ABB Ltd, ABB International Finance Limited and ABB Capital B.V.?
ABB International Finance Limited and ABB Capital B.V. are wholly-owned (indirect) subsidiaries of ABB Ltd. Please refer to the chart attached in the right-hand column.
3. How many public bonds are currently outstanding?
There are currently 4 public bonds outstanding. ABB has, in addition, issued a number of private placements. The full list of outstanding public bonds by issuer at originally issued principal amount is as follows:
ABB International Finance Limited
GBP 200 million 10% (1) bonds due 2009 (2, 3)
EUR 650 million 6.5% bonds due 2011 (2)
EUR 700 million 4.625% bonds due 2013 (2)
ABB Ltd
CHF 500 million 3.75% bonds due 2009 (4)
(1) excl. step-up
(2) issued under ABB’s Euro Medium Term Note (EMTN) Program
(3) GBP 20.1 million still outstanding
(4) CHF 108.3 million still outstanding
4. Do all the bonds have a Keep-Well Agreement with ABB Ltd? If not, which ones do not?
All bonds issued by ABB International Finance Ltd and ABB Capital B.V. benefit from a Keep-Well Agreement entered into between ABB Ltd and the respective issuer of the bond.
5. Could you provide us with the details of the Keep-Well Agreements?
The terms of the Keep-Well Agreement between ABB International Finance Ltd and ABB Ltd are summarized in the annually updated ABB EMTN Information Memorandum, which is available from the Fiscal Agent, Fortis Banque Luxembourg S.A., at the following e-mail address: laa@fortis.lu. The terms of the Keep-Well Agreement between ABB Capital B.V. and ABB Ltd are substantially similar.
6. What about the bonds issued by ABB Ltd? How are they secured?
There is no security provided in relation to bonds issued by ABB Ltd. ABB Ltd is the ultimate parent of the ABB Group and provider of the Keep-Well Agreement.
7. What assets do you have in ABB Ltd?
A balance sheet as of December 31, 2007 of ABB Ltd is provided in the ABB Group Annual Report 2007, available on this investor relations web site.
8. Are all the public bonds unsecured and unsubordinated?
Yes.
9. Do you have in your bond documentation a cross-default clause?
Yes. The relevant prospectus and/or EMTN Program sets out the details of the cross-default relevant to each bond.
10. Do you have a negative pledge in your bond documentation?
Yes. The relevant prospectus and/or EMTN Program sets out the details of the negative pledge relevant to each bond.
11. In which bonds do you have a step-up clause?
The GBP 200 million 10% bonds due 2009.
12. Could you explain the step-up clause?
Full details are provided in the prospectus for each bond and in our Annual Report and our 20-F filing with the United States Securities and Exchange Commission (SEC).
13. Which entities make available an annual report?
All the entities that issue public bonds.
14. Where can I find a copy of the annual report?
The consolidated and non-consolidated financial statements as of December 31, 2007 of ABB Ltd are provided in the ABB Group Annual Report 2007, which is available on this investor relations web site. The financial statements for ABB International Finance Limited are reproduced in the annually updated ABB EMTN Information Memorandum, which is available from the Fiscal Agent, Fortis Banque Luxembourg S.A., at the following e-mail address: laa@fortis.lu.
15. Where can I find the various public bond prospectuses?
Please contact the lead manager of the relevant bond issue, or, in the case of bonds issued under our EMTN Program, the Fiscal Agent, Fortis Banque Luxembourg S.A., at the following e-mail address: laa@fortis.lu.