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Erste Group Research Credit Markets Weekly | Credit | & CEE March 18, 2021

Credit Markets Weekly Sovereign Austria, Sub-Sovereigns & Agencies, Financials & Covered Bonds, Corporate Bonds

Analyst: Peter Kaufmann, CFA “Rising Stars” Despite Pandemic? [email protected]

Funding costs remain low in the high-yield segment as well The uptrend in Bund yields until the end of February did not significantly EUR Market overview increase financing costs for issuers of high-yield corporate bonds. Currently sorted by yield yields in the 5-yr. maturity range average 2.9%, which is below the level at Ø Ø Ø ASW Debt Type Ø Rating Term Yield (in BP) the beginning of the year (3.2%) and well below the issuance volume- DE Sovereign AAA 8.2 -0.23% -36.8 weighted Ø coupon (3.7%). The gradually improving economic outlook is Covered Bonds AAA 5.2 -0.16% 1.9 keeping credit spreads low or reducing them. This has hitherto compensated AT Agencies AA+ 5.4 -0.08% 5.8 for the upward pressure on borrowing costs exerted by rising Bund yields. In SSAs AA+ 8.6 0.21% 16.8 the near term, the two trends should continue to offset each other and Bank Senior A 4.4 0.23% 52.5 ensure that average yields remain fairly stable. High-yield issuers are taking AT Sovereign AA+ 12.8 0.26% 15.2 advantage of these conditions: their share of corporate bond issuance IG Corporates A- 6.2 0.47% 61.4 volume is rising. Relatively low refinancing requirements for issuers with IG Corp Hybrids BBB 5.1 1.68% 199.1 HY Corporates BB- 4.7 2.92% 319.5 particularly weak ratings should cap the number of defaults in 2021.

Source: Market data provider, Erste Group Research (own calculations) As expected, the investment grade segment proves far more susceptible to rising Bund yields. The Ø yield of 0.5% for the average 6-yr. maturity in the

segment is already slightly above the level recorded at the beginning of the Major Markets & Credit Research year (amid stable credit spreads). Gudrun Egger, CEFA (Head) "Rising Stars" despite Pandemic? Sovereign Austria Positive developments are easily overlooked during a crisis. For example, Margarita Grushanina S&P revised the rating outlook of Swedish automaker Volvo Car (BB+) to Sub-Sovereigns & Agencies positive on 08 March. The manufacturer in which Chinese car maker Geely Ralf Burchert, CEFA holds a 97.8% stake, inter alia benefited from its presence in China in 2020 (23% share of sales) and its focus on electric mobility. Another potential Financials & Covered Bonds Heiko Langer "rising star" is US-based streaming provider Netflix with its growing Carmen Riefler-Kowarsch subscriber base. S&P upgraded it to BB+ on January 26 (outlook: positive).

Corporate Bonds On 08 January, S&P had already upgraded the rating of Stellantis, the car Peter Kaufmann, CFA maker created through the merger of Fiat Chrysler (FCA) and Peugeot, from Bernadett Povazsai-Roemhild, CEFA Elena Statelov, CIIA BB+ to BBB-. Consolidation in the automotive sector continues apace. On 25 February Irish paper packaging group Smurfit Kappa succeeded in making the leap to "Rising Star" status. Moody's upgraded the company's rating from Ba1 to Baa3. A capital increase carried out in November 2020

Last updates: and a lowered target for the company’s debt level contributed to this. The Corporate Credit Monitor Austria rising importance of e-commerce and the move away from plastic packaging (available in German only) are providing a tailwind to the group. All the companies mentioned above Corporate Credit Monitor CEE have EUR-denominated bonds outstanding.

Week Ahead

Special topics of the week

Financials & Covered Bonds All data as of March 15, 2021 Issuer in focus: BAWAG Group AG 4 Note: Past performance is not necessarily Issuer in focus: HYPO NOE 5

indicative of future results. Issuer in focus: Insurance Group 6

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Market overview

Sub-Sovereigns & Agencies

German benchmark yield It seems 10-year German benchmark yields have made friends with remains at -0.3% the -0.3% level and hence remain in a sideways trend. By contrast, yields on US treasuries are testing new highs for the year above 1.7% on the heels of the US stimulus package agreement and the FOMC meeting. Meanwhile, signals from the ECB last week indicating the possibility of increased asset purchases are reflected in slightly softening SSA spreads in the euro area.

SSA Primary Market: By the middle of the month it is already obvious that March will once again France issues another green be a very strong month in terms of issuance activity after a rather muted bond February. Numerous issuers and in some cases large-scale placements are contributing to this: France (Aa2/AA/AA) is the largest sovereign issuer of green bonds and with its first green bond placement in 2017 also the trailblazer among sovereigns in the euro zone. The approximately EUR 29bn outstanding to date were joined by another EUR 7bn bond maturing in 2044 issued at 0.526% this week. Demand reached more than EUR 34bn, leading to a reduction in the issuance spread by 2 bps vs. initial pricing guidance. Spain's capital Madrid (Baa1/A-) raised EUR 1bn in a 10- year sustainable bond placement. The bond was priced at a yield of 0.42% or +12 bps over government bonds. The order book closed at EUR 3.3bn. The German state of Thuringia placed a EUR 800mn 10-year bond at -5 bps below mid-swaps, or -0.043%.

Plenty of offerings in the In the middle of the week, Saxony-Anhalt (Aa1/AA/AAA) raised EUR 500mn middle of the week, Greece over 30-years at +8 bps above mid-swaps, Luxembourg (Aaa/AAA/AAA) with a 30-year bond, OeKB with EUR 2.5bn via a 10-year bond and the Belgian region of Flanders (AA) a CNY-denominated placement EUR 1.25bn with a 25-year sustainability bond. Interest was strong with over EUR 26bn for a 30-year EUR 2.5bn benchmark placement by Greece (Ba3/BB-/BB) - the longest tenor since the country's capital market comeback in 2014. The issue was priced at mid-swaps +150bps (yield: 1.956%). Among domestic issuers, Oesterreichische Kontrollbank (OeKB, Aa1/AA+) was active placing a CNY 500mn bond with a one-year maturity for the Chinese market.

Financials & Covered Bonds

Despite a revival, issuance After last week ended very quietly, largely due to caution in light of the ECB volume in covered bond meeting, this week (calendar week 11) has been quite active in the banking markets remains well below the sector so far. Covered bond market issuance, although still significantly volume of the previous year below the levels of the previous year, has been able to catch up somewhat in March to date, leaving cumulative issuance volume around 45% below last year's total. In February, issuance volume was still 55% below that recorded in the previous year. Berlin Hyp placed a EUR 500mn green mortgage covered bond, thus providing fresh supply to ESG investors as well. The 'Aaa' rated covered bond maturing in January 2028 (tenor nearly 7 years) generated an order book of EUR 1.3bn. This led to the issuance spread being tightened from an initial +1 bp over mid-swaps to -3 bps below mid-swaps. From Austria, BAWAG was active with a EUR 500mn mortgage covered bond placement. With a term to maturity of 20 years, it is the covered bond with the longest tenor ever placed by an Austrian issuer. The order book reached EUR 1bn and the issuance spread was reduced from an initial +8 bps to +4 bps over mid-swaps.

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Supply from the CEE region is in evidence as well. Slovak bank VUB is placing a EUR 500mn covered bond with a five year term to maturity.

Austrian issuers active in the The market for senior unsecured bank bonds remains the dominant driver of primary market issuance in the Financials & Covered Bonds segment. Year-to-date issuance volume is only slightly below that of the previous year. Two Austrian issuers were active in the primary market of the segment as well, along with Spain's BBVA (EUR 1bn), Finland's OP Bank (dual tranche/ EUR 1bn), Sweden's (EUR 500mn), Goldman Sachs (dual tranche/ EUR 2.25bn) and (EUR 1.5bn). Volksbank Wien placed a 5-year senior non-preferred bond with a volume of EUR 500mn at the end of last week. The order book reached EUR 1bn and the issuance spread was reduced from 150 bps to 130 bps over mid-swaps. HYPO NOE was seen placing a 5-year EUR 500mn senior preferred bond. The issuance spread was reduced to 48 bps (original guidance 60-65 bps) and the order book amounted to EUR 600mn.

Secondary markets remain largely stable. There was neither much movement in spreads on covered bonds (which tend to fluctuate very little anyway), nor on senior unsecured bank bonds.

Corporate Bonds

Primary market activity As expected, primary market activity for EUR-denominated corporate bonds remains strong with a large continues to be brisk. Strong issuance volumes were once again attributable proportion of ESG-related to companies based outside of the Eurozone: Verizon (Baa1/BBB+/A-) from issuance the US placed EUR 2.75bn, APT Pipelines (Baa2/BBB) from Australia EUR 1.1bn and Imperial Brands (Baa3/BBB/BBB) from the UK EUR 1bn; to name just the largest transactions. Representatives of the high-yield segment raising funds included Sappi (Ba2/BB-) from South Africa with EUR 400mn and Victoria (B1/BB-/BB-) from Australia with EUR 250mn.

Since the beginning of last week, three green bonds and two bonds linked to the sustainability of the issuer have been issued. Overall, ESG-related issuance already stands at EUR 18bn year-to-date; this corresponds to around 16% of total primary market volume. The trend is clearly pointing upward: In both 2019 and 2020 it amounted to slightly more than 8%.

We expect issuance activity to remain very strong. According to Bloomberg, the pipeline is well-filled with planned placements.

HY spreads tighter since ECB High-yield spreads tightened immediately after the ECB meeting last meeting Thursday. The widening trend evident since the end of February has therefore been halted for the time being. In the investment grade segment, spreads remained stable. In this segment, they have de facto moved sideways since the beginning of the year.

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Financials & Covered Bonds Heiko Langer [email protected] Issuer in focus: BAWAG Group AG

Broad base of retail and BAWAG Group AG (“BAWAG Group”) serves a broad base of retail and corporate customers corporate customers in Austria. By means of several acquisitions the group expanded its operations into as an additional core market in recent years. In addition the group is active in selected developed markets. The history of BAWAG Group dates back to the year 1922 when it was founded as a bank for trade unions and consumer cooperatives. In 2007 the bank was taken over by a consortium led by the Cerberus Group. The stock exchange listing of BAWAG Group in 2017 represented a further milestone in the bank's strategic development. Following the exit of Cerberus in 2019, more than 70% of the shares are in the free float.

First green bond issue planned ESG matters are managed by a non-financial risk & ESG committee at for 2021 BAWAG, which was established at the management board level. BAWAG has a Sustainalytics ESG rating of 25.6, which corresponds to medium ESG-related risk. The MSCI ESG rating is 'BBB'. The bank plans to issue a first green bond in 2021.

Stable operating business; risk The FY 2020 earnings of BAWAG Group were characterized by a stable provisions weigh on results performance of the operating business, while being weighed down by risk provisions related to the COVID-19 pandemic. Pre-tax result declined by 38.8% to EUR 369.9mn. In the current year, BAWAG expects a muted business performance in 1H 2021, followed by a normalization in 2H 2021.

Profitability and efficiency as As the main issuing company for covered and unsecured bonds, BAWAG strengths - growth strategy as P.S.K. is rated 'A2' (stable) by Moody's. The agency praises the bank’s a risk factor strong profitability and solid capitalization, but also sees risks in the implementation of its growth strategy. As an issuer of securities affecting the bank's equity capital, BAWAG Group AG has a Moody's rating for its additional tier 1 ('Ba1') and subordinate debt securities ('Baa2').

Public and mortgage covered BAWAG P.S.K. issues covered bonds that are collateralized either by public bonds with 'Aaa' rating sector or by mortgage cover pools. Moody's assigns a rating of 'Aaa' to both types of covered bond programs. Mortgage covered bonds represent the lion's share (75%) of the bank's outstanding covered bonds.

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Financials & Covered Bonds Carmen Riefler-Kowarsch [email protected] Issuer in focus: HYPO NOE

Credit institution owned by the With total assets of around EUR 16bn, HYPO NOE is currently Austria's Province of Lower Austria with largest provincial mortgage bank. Its business focus is on public sector a focus on the public sector finance. However, it also covers real estate and corporate finance and serves private customers and SMEs in 27 branch offices in its core market. The focus is clearly on Austria, with a special emphasis on Lower Austria and Vienna. However, the bank also operates in Germany and in selected markets in the European Union. The federal province of Lower Austria is the sole owner of HYPO NOE. S&P derives from this a high importance for the bank's home region and thus assumes a high probability of support in case of need.

Net earnings of EUR 31.9mn HYPO NOE was able to increase both net interest income and net commission income in the 2020 financial year. There was a further significant reduction in administrative expenses as well. In combination this more than offset a doubling of risk provisions. Net earnings grew by 4.9% year-on-year to EUR 31.9mn (2019: EUR 30.4mn). Pre-tax earnings increased by 9.2% to EUR 41.2mn. Based on developments in the 2020 financial year, the bank's management expects a solid business performance in 2021 as well.

S&P assigns an issuer rating of On 07 May 2020 S&P made adjustments to HYPO NOE's rating outlook in ‚A‘ with a stable outlook response to the COVID-19 pandemic. The outlook was revised from 'positive' to 'stable', while the rating of 'A' was affirmed. S&P continues to highlight the support of the federal province as the bank's 100% owner as a credit-positive factor. Furthermore, the low-risk credit profile and strong capitalization of the bank are seen as buffers mitigating negative impacts related to COVID-19. However, deteriorating economic conditions could have a negative impact on its already weak profitability.

2021 refinancing requirements HYPO NOE is currently one of the five largest issuers in the Austrian of EUR 1.5bn covered bond market. Both the public sector and mortgage covered bond programs are rated 'Aa1'. The bank's funding plan for 2021 indicates refinancing requirements of up to EUR 1.5 billion. According to the company, it currently does not need to issue senior non-preferred bonds as it is already over-fulfilling regulatory MREL ratio requirements significantly, namely by >200%.

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Financials & Covered Bonds Peter Kaufmann, CFA [email protected] Issuer in focus:

Market leader in CEE Publicly listed Vienna Insurance Group (VIG) comprises around 50 subsidiaries offering life, property/casualty as well as health insurance policies in 30 countries - predominantly in Central and Eastern Europe.

Approximately 72% of VIG's shares are held by Wiener Staedtische Versicherungsverein. The remaining shares are free-floating.

With a market share of almost 19% and 22mn customers, the group is market leader in the CEE region. It employs 25,000 people. In terms of their contribution to premiums and earnings, Austria and the are the largest individual markets of the group. More than 50% of premiums and earnings are generated in the CEE Region. VIG began expanding in the CEE region 30 years ago and has extensive experience in these markets. The Group is gradually enhancing its market positions through the acquisition and successful integration of local insurance companies.

Acquisition of Aegon CEE On 29 Nov. 2020 VIG announced the acquisition of Aegon subsidiaries in subsidiaries , , and Turkey for EUR 830mn. In 2019 these posted net earnings of EUR 50mn with a volume of EUR 600mn in premiums written. In Hungary VIG will become the market leader (hitherto ranked in 6th place). VIG gains 4.5mn customers in total.

As of 31 Dec. 2020, the solvency capital ratio (Solvency II) of the VIG group stood at a very strong 235% based on an initial estimate and applying Solvency II transitional regulations (“transitionals”) for the first time (excl. “transitionals”: 195%). It is significantly stronger than the peer median. According to VIG, from today's perspective it should remain in the comfort zone defined by the Group (170-230%) even after the closing of the acquisition of the Aegon subsidiaries in the CEE region. Closing is expected in the second half of 2021.

S&P affirmed ‚A+‘ rating after S&P most recently affirmed VIG's “A+” rating on 03 Dec. 2020 (outlook: the announcement of the stable) and inter alia highlighted the strong capitalization in its rationale. acquisition S&P's rating of “A+” has been in place since July 2005: the group stood out in past crisis periods on account of its stability as well.

Despite the pandemic, VIG succeeded in keeping premium volume stable in 2020 (EUR 10.4bn; +0.3% y/y). Pre-tax earnings decreased to EUR 346mn (-33.7% y/y). This was primarily attributable to the decline in the financial result (EUR 596mn; -41.0% y/y), which was driven by non-recurring items. The ratio of claims and expenses to premiums (combined ratio) was reduced to 95.0% in 2020 (2019: 95.4%).

The management of VIG continues to see COVID-19 as a major uncertainty factor. Premiums are expected to remain unchanged in 2021, pre-tax earnings are seen at EUR 450-500mn and the combined ratio at 95% (all figures excl. the acquired Aegon CEE subsidiaries).

More information can be found in our issuer profile.

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EUR primary market

Total market Issue volume in annual comparison 2016-2021 YTD, in EUR bn 1,600 1,400 1,200 1,000 800 600 400 200

0

2017 2019 2020 2016 2018 2021

Agency Corporate Financial Muni/Local Gov't Sovereign Supra

Total market Issue volume, by rating … and by country 2019-2021 YTD 2019-2021 YTD

Other; 9% HY Other 1% CAN; 2% DEU; 20% 9% AAA FIN; 2% BBB- 20% AUT; 2% 7% LUX; 2% SWE; 3% BBB BEL; 3% 10% AA+ NLD; 5% 8% FRA; 16%

BBB+ GBR; 5% 9% AA 7% ITA; 6% AA- USA; 9% Multi-Nationals; A- A+ 4% ESP; 7% 12% A 7% 7% 6%

Source: Market data provider, Erste Group Research (own calculations)

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Total market

EUR issues Current Launch Volume Spread (ASW) Issue Spread/ ISIN Issuer Industry Rank Date Tap (in m) Currency Coupon Maturity S&P Moody's Fitch (Mid) Yield XS2320760114 VERIZON Media & Telecoms Senior 15.03.2021 N 750 EUR 1.125 19.09.2035 BBB+ Baa1 A- 96 MS+100 XS2320759884 VERIZON Media & Telecoms Senior 15.03.2021 N 1,000 EUR 0.750 22.03.2032 BBB+ Baa1 A- 73 MS+75 XS2320759538 VERIZON Media & Telecoms Senior 15.03.2021 N 1,000 EUR 0.375 22.03.2029 BBB+ Baa1 A- 54 MS+55 XS2321466133 Banking Sub 15.03.2021 N 1,000 EUR 1.125 22.03.2031 BB+ Baa3 BBB+ 150 MS+155 XS2321427408 BANK OF AMERICA Banking Senior 15.03.2021 N 1,500 EUR 0.694 22.03.2031 A- A2 A+ 75 MS+75 XS2320453884 UPM-KYMMENE Basic Materials Senior 15.03.2021 N 500 EUR 0.500 22.03.2031 NR Baa1 NR 58 MS+60 XS2320459063 IMPERIAL BRANDS Consumer Goods & Services Senior 15.03.2021 N 1,000 EUR 1.750 18.03.2033 BBB Baa3 NR - MS+170 XS2320533131 REPSOL Basic Materials Sub 15.03.2021 N 750 EUR 2.500 Perpetual BB+ Ba1 BB+ 279 MS+276.9 XS2320745156 HANNOVER RE Insurance Sub 15.03.2021 N 750 EUR 1.375 30.06.2042 A NR NR 135 MS+133 XS2321526480 NORDEA BANK Banking Senior 15.03.2021 N 500 EUR 0.500 19.03.2031 A Baa1 AA- 52 MS+52 DE000A161RM9 BAYERNLABO Agency Senior 15.03.2021 N 500 EUR 0.250 21.03.2036 NR Aaa NR 2 MS flat XS2319950130 AHLSTROM OYJ Manufacturing Senior 12.03.2021 N 350 EUR 3.625 04.02.2028 B B2 BB- 369 B+414 XS2320438653 CADENT FINANCE Utilities & Pow er Senior 12.03.2021 N 625 EUR 0.625 19.03.2030 BBB+ Baa1 A- 68 MS+70 AT000B122080 VOLKSBANK Banking Senior 12.03.2021 N 500 EUR 0.875 23.03.2026 NR Baa3 NR 118 MS+130 XS2314265237 PUBLIC POWER Utilities & Pow er Senior 11.03.2021 N 650 EUR 3.875 30.03.2026 B NR BB- 376 B+454 XS2317288301 AHOLD Consumer Goods & Services Senior 11.03.2021 N 600 EUR 0.375 18.03.2030 BBB Baa1 NR 45 MS+48 XS2314675997 EIB Supra Senior 11.03.2021 N 500 EUR 0.010 15.11.2030 AAA Aaa AAA -12 MS-12 FR0014002G36 SAFRAN Technology Senior 10.03.2021 N 700 EUR 0.750 17.03.2031 BBB+ NR NR 74 MS+80 FR0014002G44 SAFRAN Technology Senior 10.03.2021 N 700 EUR 0.125 16.03.2026 BBB+ NR NR 52 MS+60 FR0014002GI0 CADES Agency Senior 10.03.2021 N 5,000 EUR 0.000 25.05.2029 NR Aa2 AA 1 FRTR+15 BE0002779602 WALLONNE Municipality/Local Government Senior 10.03.2021 N 500 EUR 1.250 22.06.2071 NR A2 NR 91 BGB+35 BE0002778596 WALLONNE Municipality/Local Government Senior 10.03.2021 N 700 EUR 0.500 22.06.2037 NR A2 NR 30 BGB+31 DE000A3H2499 LOWER SAXONY Municipality/Local Government Senior 10.03.2021 N 1,000 EUR 0.010 17.03.2026 NR NR AAA -8 MS-6 FR0014002GB5 AFD Agency Senior 10.03.2021 N 1,250 EUR 0.375 25.05.2036 AA NR AA 16 FRTR+22 XS2310118976 CAIXABANK Banking Sub 09.03.2021 N 1,000 EUR 1.250 18.06.2031 BBB- Ba1 BBB- 157 MS+163 XS2317069685 Banking Senior 09.03.2021 N 1,250 EUR 0.750 16.03.2028 BBB Baa1 BBB- 87 MS+93 XS2315784806 APT PIPELINES Transport & Logistics Senior 09.03.2021 N 500 EUR 1.250 15.03.2033 BBB Baa2 NR 109 MS+115 XS2315784715 APT PIPELINES Transport & Logistics Senior 09.03.2021 N 600 EUR 0.750 15.03.2029 BBB Baa2 NR 85 MS+90 XS2315945829 VICTORIA PLC Manufacturing Senior 09.03.2021 N 250 EUR 3.750 15.03.2028 BB- B1 BB 380 B+429 XS2314657409 PROLOGIS INTL FUND II Industrials Senior 09.03.2021 N 500 EUR 0.750 23.03.2033 A- A3 NR 63 MS+65 EU000A3KM903 EUROPEAN UNION Supra Senior 09.03.2021 N 9,000 EUR 0.200 04.06.2036 AA Aaa AAA -9 MS-4 DE000A11QJK8 OLB BANK Banking Covered 09.03.2021 N 350 EUR 0.050 17.03.2031 NR Aa1 NR 6 MS+6 FR0014002FC5 BPCE SFH Banking Covered 08.03.2021 N 750 EUR 0.375 18.03.2041 AAA Aaa NR 3 MS+4 FR0014002FB7 BPCE SFH Banking Covered 08.03.2021 N 500 EUR 0.010 18.03.2031 AAA Aaa NR -1 MS flat IT0005437733 CREDIT AGRICOLE ITALIA Banking Covered 08.03.2021 N 500 EUR 0.125 15.03.2033 NR Aa3 NR 8 MS+9 EU000A1Z99N4 ESM Supra Senior 08.03.2021 N 2,000 EUR 0.000 15.12.2026 AAA Aa1 AAA -12 MS-11 DE000A289KB6 SAARLAND Municipality/Local Government Senior 08.03.2021 N 250 EUR 0.500 15.03.2051 NR NR AAA 8 MS+10 DE000A255D88 LOWER SAXONY Municipality/Local Government Senior 04.03.2021 N 1,000 EUR 0.125 10.01.2030 NR NR AAA -5 MS-5 XS2307437629 Banking Sub 04.03.2021 N 500 EUR 5.500 11.06.2031 CCC Caa2 NR 601 MS+582.3 XS2310411090 CITYCON OYJ Consumer Goods & Services Senior 04.03.2021 N 350 EUR 1.625 12.03.2028 BBB- Baa3 BBB- 184 MS+200 FR0014002BJ9 CREDIT MUTUEL ARKEA Banking Senior 04.03.2021 N 500 EUR 0.875 11.03.2033 NR Baa1 A- 76 MS+80 DE000A3H3JM4 DAIMLER Manufacturing Senior 04.03.2021 N 1,000 EUR 0.750 11.03.2033 BBB+ A3 BBB+ 62 MS+70 DE000CB0HRY3 Banking Senior 04.03.2021 N 500 EUR 0.100 11.09.2025 BBB+ A1 NR 43 MS+48 DE000RLP1270 LAND RHINELAND-PALATINATE Municipality/Local Government Senior 04.03.2021 N 600 EUR 0.375 10.03.2051 NR NR AAA 7 MS+8

AT0000A2QDQ2 HYPO TIROL Banking Covered 04.03.2021 N 500 EUR 0.010 11.03.2031 NR Aa1 NR 3 MS+4 XS2308322002 BOOKING HOLDINGS Consumer Goods & Services Senior 03.03.2021 N 750 EUR 0.500 08.03.2028 A- A3 NR 61 MS+70 XS2308321962 BOOKING HOLDINGS Consumer Goods & Services Senior 03.03.2021 N 950 EUR 0.100 08.03.2025 A- A3 NR 43 MS+50 XS2312746345 ENEL Utilities & Pow er Sub 03.03.2021 N 1,000 EUR 1.875 Perpetual BBB- Baa3 BBB 201 MS+201.1 XS2312744217 ENEL Utilities & Pow er Sub 03.03.2021 N 1,250 EUR 1.375 Perpetual BBB- Baa3 BBB 178 MS+171.9 XS2312723302 MONDELEZ INTERNATIONAL Consumer Goods & Services Senior 03.03.2021 N 650 EUR 1.375 17.03.2041 BBB Baa1 BBB 106 MS+105 XS2312723138 MONDELEZ INTERNATIONAL Consumer Goods & Services Senior 03.03.2021 N 600 EUR 0.750 17.03.2033 BBB Baa1 BBB 73 MS+70 XS2312722916 MONDELEZ INTERNATIONAL Consumer Goods & Services Senior 03.03.2021 N 750 EUR 0.250 17.03.2028 BBB Baa1 BBB 50 MS+50 XS2310748483 EATON CORP Industrials Senior 03.03.2021 N 600 EUR 0.577 08.03.2030 A- Baa1 BBB+ 64 MS+62 XS2310747915 EATON CORP Industrials Senior 03.03.2021 N 900 EUR 0.128 08.03.2026 A- Baa1 BBB+ 46 MS+45 XS2311407352 Banking Senior 03.03.2021 N 750 EUR 0.375 10.05.2027 BBB- Baa2 BBB 75 MS+77 IT0005438004 ITALY Sovereign Senior 03.03.2021 N 8,500 EUR 1.500 30.04.2045 BBB Baa3 BBB- 98 BTPS+12 DE000MHB64E1 MUENCHEN HYPBK Banking Senior 03.03.2021 N 500 EUR 0.375 09.03.2029 NR A2 NR 54 MS+57 XS2312584779 SR-BOLIGKREDITT AS Banking Covered 03.03.2021 N 1,000 EUR 0.010 10.03.2031 NR Aaa NR 5 MS+5 DE000A3H3D69 SAXONY-ANHALT Municipality/Local Government Senior 03.03.2021 N 1,000 EUR 0.000 10.03.2031 AA Aa1 AAA -6 MS-2 XS2310945048 BCO SABADELL Banking Sub 02.03.2021 N 500 EUR 5.750 Perpetual BB- NR NR 583 MS+619.8

Source: Market data provider, Erste Group Research (own calculations)

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Sovereigns/Sub-Sovereigns & Agencies Issue volume in monthly comparison … and by country 2019-2021 YTD, in EUR bn 2019-2021 YTD 70

60 Other; 8% NLD; 5% 50 LUX; 7% 40 DEU; 39%

30 FRA; 13% 20

10

0 Multi- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Nationals; 28% 2019 2020 2021 5Y average

Banks Senior (Financials) Issue volume in monthly comparison … and by country 2019-2021 YTD, in EUR bn 2019-2021 YTD 35

30 Other; 9% DNK; 2% USA; 19% 25 CAN; 3% AUS; 4% 20 SWE; 4% 15 CHE; 5% 10 FRA; 15% ITA; 5% 5

0 ESP; 6% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec GBR; 10% NLD; 7% DEU; 9% 2019 2020 2021 5Y average

Source: Market data provider, Erste Group Research (own calculations)

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Covered Bonds Issue volume in monthly comparison … and by country 2019-2021 YTD, in EUR bn 2019-2021 YTD 40 Other; 9% BEL; 3% 35 DEU; 21% AUT; 4% 30 AUS; 4% 25 NOR; 4% 20 GBR; 4% 15 FRA; 16% 10 ESP; 5% 5 ITA; 6% 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec NLD; 7% CAN; 8% SWE; 7% 2019 2020 2021 5Y average

Corporate Bonds Issue volume in monthly comparison ... and by sector 2019-2021 YTD, in EUR bn 2019-2021 YTD 80 Technology Consumer 70 Other 5% 7% Goods & 60 Basic Services Materials 24% 50 6% 40 Utilities & 30 Power 20 11% 10 0 Media & Manufacturi Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Telecoms ng 21% 2019 2020 2021 5Y average 13% Industrials 13%

Source: Market data provider, Erste Group Research (own calculations)

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EUR secondary market

EUR market International spread comparison Country Type 1-3Y 3-5Y 5-7Y 7-10Y >10Y Total AUSTRALIA Covered 3.5 6.5 6.0 12.5 12.7 6.1 Banks Senior 16.1 49.0 41.7 28.3 17.7 31.9 Corporates Senior 34.0 40.0 46.6 66.9 63.9 48.5 AUSTRIA Sovereign -16.0 -23.0 -22.8 -14.8 15.9 -6.1 SSA -5.6 -4.0 1.6 - 12.8 1.1 Covered -1.2 -1.8 -0.7 -0.8 0.1 -0.9 Banks Senior 49.7 63.9 80.0 38.1 - 65.5 Corporates Senior 25.4 31.1 37.0 49.3 56.3 38.5 BELGIUM Sovereign -19.0 -20.5 -19.1 -15.2 16.0 -0.6 Covered -1.4 -2.4 -2.3 -0.8 - -1.7 Banks Senior 28.1 56.3 57.7 45.9 - 45.8 Corporates Senior 29.6 32.0 41.5 42.8 92.3 49.1 BRITISH VIRGIN ISLANDS Corporates Senior 61.4 92.0 60.5 - 79.9 78.4 CANADA SSA 3.1 3.8 6.1 11.6 18.1 7.3 Covered 1.9 2.9 4.8 5.9 - 2.7 DENMARK Banks Senior 40.4 74.3 95.0 - - 62.2 Corporates Senior 25.0 57.8 81.3 40.6 - 56.6 FINLAND Sovereign -18.6 -23.5 -22.0 -17.9 -9.6 -16.7 SSA -8.3 -8.1 -4.8 -0.8 5.4 -3.7 Covered -5.0 -6.9 -4.9 -5.1 -2.4 -5.2 Banks Senior 18.9 40.6 32.3 55.8 - 30.1 FRANCE Sovereign -16.3 -19.1 -18.2 -12.4 20.0 -3.3 SSA 2.6 4.1 4.7 9.2 37.6 12.4 Covered -2.4 -1.9 -1.6 -0.8 2.3 -1.1 Banks Senior 28.4 52.2 66.6 67.7 81.5 53.6 Corporates Senior 28.7 34.8 41.4 42.4 56.4 39.4 GERMANY Sovereign -20.2 -30.0 -36.1 -38.1 -39.6 -31.3 SSA -9.2 -9.0 -8.0 -6.4 11.3 -4.4 Covered -4.0 -3.8 -2.5 -2.0 -1.6 -3.2 Banks Senior 37.0 56.5 71.8 89.0 151.8 61.8 Corporates Senior 36.0 42.0 44.6 48.1 52.6 44.0 IRELAND Sovereign -11.2 -13.9 -14.6 -9.0 4.3 -5.4 Corporates Senior 49.9 53.5 48.9 43.6 59.0 51.0 ITALY Sovereign 1.4 29.4 35.4 59.6 103.2 48.5 Covered 7.9 6.7 10.0 7.7 10.7 8.1 Banks Senior 43.2 76.1 93.1 111.4 - 72.3 Corporates Senior 33.8 41.4 57.7 49.8 57.4 47.4 JAPAN Banks Senior 30.3 42.0 52.8 53.5 - 43.3 Corporates Senior 40.5 41.3 78.0 97.8 106.4 77.0 JERSEY Corporates Senior 55.4 64.8 75.5 83.7 121.4 77.6 LUXEMBOURG Corporates Senior 39.0 56.1 57.7 44.3 64.1 53.6 MEXICO Sovereign 44.3 50.0 77.2 153.7 248.7 161.9 NETHERLANDS Sovereign -21.5 -25.4 -26.2 -24.8 -27.0 -25.1 SSA -7.8 -7.3 -4.6 -4.1 2.4 -4.9 Covered -0.4 1.6 2.4 1.1 -1.6 0.4 Banks Senior 32.3 57.9 48.7 56.2 41.9 44.8 Corporates Senior 30.0 37.5 43.9 47.0 61.7 42.8 NEW ZEALAND Banks Senior 16.9 24.6 - 30.3 - 21.9 NORWAY Covered -0.7 1.6 2.6 4.0 - 1.3 Banks Senior 25.9 33.4 42.1 - - 31.0 Corporates Senior 24.6 33.1 32.1 37.4 43.2 34.1 POLAND Sovereign 10.6 14.9 15.2 12.5 38.1 15.6 PORTUGAL Sovereign -12.7 1.0 7.4 19.1 54.1 20.8 ROMANIA Sovereign - 74.5 115.0 159.5 233.6 164.8 SINGAPORE Covered 6.6 8.9 7.9 - - 7.4 Sovereign -6.4 -16.7 -11.7 -9.3 12.9 -5.5 SLOVENIA Sovereign -9.0 -7.7 -6.7 -3.1 24.1 3.4 SPAIN Sovereign -2.4 2.5 10.3 22.1 79.0 31.5 SSA 9.8 15.9 26.2 33.1 - 18.0 Covered 8.4 7.3 7.2 3.0 7.0 7.2 Banks Senior 55.2 67.8 74.8 139.3 - 67.5 Corporates Senior 36.3 53.5 65.2 71.7 91.9 61.1 SUPRA NATIONAL SSA -14.0 -8.6 -13.2 -11.0 -2.1 -8.4 SWEDEN Covered -1.6 0.3 -0.1 2.4 4.4 -0.3

Source: Market data provider, Erste Group Research (own calculations)

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Sovereigns/Sub-Sovereigns & Agencies: Austria Spread development … and spread overview 2015-2021 YTD, ASW in BP EUR benchmark bonds, ASW in BP 50 60

40 50 40 30 30 20 20

10 10

0 0 -10 -10 -20

-20

30.06.20 30.04.21 30.09.21 28.02.22 31.12.22 31.05.23 31.10.23 31.03.24 31.01.25 30.06.25 30.11.25 30.04.26 30.09.26 28.02.27 31.07.27 31.12.27 31.05.28 31.10.28 31.03.29 31.08.29 30.11.20 31.07.22 31.08.24

12.2015 03.2016 09.2016 06.2017 09.2017 12.2017 03.2018 06.2018 12.2018 03.2019 06.2019 09.2019 12.2019 06.2020 09.2020 12.2020 06.2016 12.2016 03.2017 09.2018 03.2020 EUR Sub-Sovereigns EUR Austria SSA EUR Austria SSA Poly. (EUR SSA) Poly. (EUR Austria SSA)

Sovereigns/Sub-Sovereigns & Agencies: Austria Outstanding EUR benchmark bonds Current Volume Minimum Spread (ASW Issue ISIN Issuer (in m) Piece Coupon Maturity S&P Moody's Fitch Mid) Spread XS0542825160 AUTOBAHN SCHNELL AG 1,500 50,000 3.375 22.09.2025 AA+ Aa1 - -4 - XS0790003023 AUTOBAHN SCHNELL AG 1,000 100,000 2.750 11.06.2032 AA+ Aa1 - 6 85 XS1291264775 AUTOBAHN SCHNELL AG 1,000 100,000 0.625 15.09.2022 AA+ Aa1 - -6 - XS1484645616 KAF KAERTNER AUSGLEICHSZ 1,107 1 0.000 14.01.2032 - Aa1 AA+ 23 - XS0307792159 OEBB-INFRASTRUKTUR AG 1,500 50,000 4.875 27.06.2022 AA+ Aa1u - -5 - XS0520578096 OEBB-INFRASTRUKTUR AG 1,500 1,000 3.875 30.06.2025 AA+ Aa1u - -3 55 XS0691970601 OEBB-INFRASTRUKTUR AG 1,000 1,000 3.500 19.10.2026 AA+ Aa1u - 2 65 XS0782697071 OEBB-INFRASTRUKTUR AG 1,350 1,000 3.375 18.05.2032 AA+ Aa1u - 11 95 XS0949964810 OEBB-INFRASTRUKTUR AG 1,000 1,000 2.250 04.07.2023 AA+ Aa1u - -4 29 XS0984087204 OEBB-INFRASTRUKTUR AG 1,000 1,000 3.000 24.10.2033 AA+ Aa1u - 10 30 XS1138366445 OEBB-INFRASTRUKTUR AG 1,000 1,000 1.000 18.11.2024 AA+ Aa1u - -4 8 XS1689595830 OEKB OEST. KONTROLLBANK 1,500 100,000 0.250 26.09.2024 AA+ Aa1 - -4 - XS2152924952 OEKB OEST. KONTROLLBANK 1,750 100,000 0.000 06.04.2023 AA+ Aa1 - -8 -

Source: Market data provider, Erste Group Research (own calculations)

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Banks Senior (Financials): Austria Spread development … and spread overview 2015-2021 YTD, ASW in BP EUR benchmark bonds, ASW in BP 250 250

200 200

150 150

100 100

50 50

0 0

12.2015 03.2016 06.2016 09.2016 12.2016 03.2017 06.2017 09.2017 12.2017 03.2018 06.2018 09.2018 12.2018 12.2019 03.2019 06.2019 09.2019 03.2020 06.2020 09.2020 12.2020

30.06.20 30.04.21 30.09.21 28.02.22 31.07.22 31.12.22 31.05.23 31.10.23 31.03.24 31.08.24 30.11.25 30.09.26 31.07.27 31.12.27 31.05.28 31.10.28 31.03.29 31.08.29 30.11.20 31.01.25 30.06.25 30.04.26 28.02.27 EUR Banks Senior EUR Austria Bank Senior EUR Austria Banks Senior Poly. (EUR Banks Senior)

Banks Senior (Financials): Austria Outstanding EUR benchmark bonds Current Volume Minimum Spread (ASW Issue ISIN Issuer (in m) Piece Coupon Maturity S&P Moody's Fitch Mid) Spread XS2049584084 BAWAG P.S.K. 500 100,000 0.375 03.09.2027 - Baa2 - 85 - XS1982725159 ERSTE GROUP BANK AG 500 100,000 0.375 16.04.2024 A A2 A 28 - XS2000538343 ERSTE GROUP BANK AG 500 100,000 0.875 22.05.2026 A- Baa1 A- 52 - XS2083210729 ERSTE GROUP BANK AG 500 100,000 1.000 10.06.2030 BBB+ Baa2 BBB+ 121 - AT0000A2GH08 ERSTE GROUP BANK AG 750 100,000 0.875 13.05.2027 A A2 A 35 - AT0000A2J645 ERSTE GROUP BANK AG 500 100,000 1.625 08.09.2031 BBB+ Baa2 BBB+ 122 - AT0000A2JAF6 ERSTE GROUP BANK AG 500 100,000 0.050 16.09.2025 A A2 A 32 - AT0000A2KW37 ERSTE GROUP BANK AG 750 100,000 0.100 16.11.2028 A A2 A 44 - AT0000A2N837 ERSTE GROUP BANK AG 500 100,000 0.250 27.01.2031 A A2 A 38 - XS1807409450 HYPO NOE LB NOE WIEN AG 500 100,000 0.875 16.10.2023 A - - 49 - XS2193956716 HYPO NOE LB NOE WIEN AG 500 100,000 0.375 25.06.2024 A - - 32 - XS0981632804 RAIFFEISEN BANK INTL 500 100,000 6.000 16.10.2023 BBB Baa3 - 68 385 XS1917591411 RAIFFEISEN BANK INTL 500 100,000 1.000 04.12.2023 - A3 - 33 - XS2049823763 RAIFFEISEN BANK INTL 500 100,000 1.500 12.03.2030 - Baa3 - 151 - XS2055627538 RAIFFEISEN BANK INTL 750 100,000 0.375 25.09.2026 - A3 - 36 - XS2106056653 RAIFFEISEN BANK INTL 750 100,000 0.250 22.01.2025 - A3 - 35 - XS2189786226 RAIFFEISEN BANK INTL 500 100,000 2.875 18.06.2032 - Baa3 - 186 - XS2065593068 RAIFFEISEN LB NIEDEROEST 500 100,000 0.250 16.04.2024 - Baa1 - 49 -

Source: Market data provider, Erste Group Research (own calculations)

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Covered Bonds: Austria Spread development … and spread overview 2015-2021 YTD, ASW in BP EUR benchmark bonds, ASW in BP 35 40 30 35

25 30 25 20 20 15 15 10 10

5 5 0 0 -5 -5 -10

-10

30.06.20 30.11.20 30.04.21 30.09.21 28.02.22 31.07.22 31.12.22 31.05.23 31.10.23 31.03.24 31.08.24 31.01.25 30.11.25 30.04.26 30.09.26 28.02.27 31.07.27 31.12.27 31.05.28 31.10.28 31.03.29 31.08.29 30.06.25

12.2015 06.2016 09.2016 12.2016 06.2017 12.2017 03.2018 06.2018 12.2018 03.2019 06.2019 12.2019 06.2020 09.2020 03.2016 03.2017 09.2017 09.2018 09.2019 03.2020 12.2020 EUR Austria Covered Poly. (EUR Covered) EUR Covered EUR Austria Covered Poly. (EUR Austria Covered)

Covered Bonds: Austria Outstanding EUR benchmark bonds table 1/2 Current Volume Minimum Spread (ASW Issue ISIN Issuer (in m) Piece Coupon Maturity S&P Moody's Fitch Mid) Spread XS1551294926 BAWAG P.S.K. 500 100,000 0.750 18.01.2027 - Aaa - -1 - XS2013520023 BAWAG P.S.K. 500 100,000 0.625 19.06.2034 - Aaa - -1 - XS2058855441 BAWAG P.S.K. 500 100,000 0.010 02.10.2029 - Aaa - -2 - XS2106563161 BAWAG P.S.K. 500 100,000 0.010 21.01.2028 - Aaa - -1 - XS2234573710 BAWAG P.S.K. 750 100,000 0.010 23.09.2030 - Aaa - -2 - XS2259776230 BAWAG P.S.K. 500 100,000 0.010 19.11.2035 - Aaa - -2 - XS1181448561 ERSTE GROUP BANK AG 500 100,000 0.750 05.02.2025 - Aaa - -3 6 XS1346557637 ERSTE GROUP BANK AG 750 100,000 0.625 19.01.2023 - Aaa - -2 16 XS1550203183 ERSTE GROUP BANK AG 750 100,000 0.625 18.01.2027 - Aaa - -3 - XS1750974658 ERSTE GROUP BANK AG 1,000 100,000 0.750 17.01.2028 - Aaa - -2 - XS1807495608 ERSTE GROUP BANK AG 750 100,000 0.625 17.04.2026 - Aaa - -2 - XS1845161790 ERSTE GROUP BANK AG 750 100,000 0.250 26.06.2024 - Aaa - -3 - AT0000A286W1 ERSTE GROUP BANK AG 500 100,000 0.875 15.05.2034 - Aaa - 0 - AT0000A2A6W3 ERSTE GROUP BANK AG 500 100,000 0.010 11.09.2029 - Aaa - -2 - AT0000A2CDT6 ERSTE GROUP BANK AG 750 100,000 0.100 15.01.2030 - Aaa - -2 - XS0780267406 HYPO NOE LB NOE WIEN AG 500 1,000 3.000 09.05.2022 - Aa1 - -1 88 XS1590565112 HYPO NOE LB NOE WIEN AG 500 100,000 0.375 04.04.2023 - Aa1 - -2 - XS1875268689 HYPO NOE LB NOE WIEN AG 500 100,000 0.500 04.09.2025 - Aa1 - -1 - XS2057917366 HYPO NOE LB NOE WIEN AG 500 100,000 0.010 01.10.2026 - Aa1 - -1 - XS2176710510 HYPO NOE LB NOE WIEN AG 500 100,000 0.010 18.06.2027 - Aa1 - 1 - AT0000A2AYL3 HYPO TIROL BANK AG 500 100,000 0.010 19.10.2026 - Aa1 - 1 - XS1188081936 HYPO VORARLBERG BANK AG 500 100,000 0.750 11.02.2025 - Aaa - -3 7 XS1613238457 HYPO VORARLBERG BANK AG 500 100,000 0.375 17.05.2024 - Aaa - -4 - XS1856342560 HYPO VORARLBERG BANK AG 500 100,000 0.625 17.07.2026 - Aaa - 2 - XS1999728394 HYPO VORARLBERG BANK AG 500 100,000 0.250 21.05.2027 - Aaa - 3 - XS2086861437 RAIFFEISEN BANK INTL 500 100,000 0.125 03.12.2029 - Aa1 - 0 - XS0827597351 RAIFFEISEN LB NIEDEROEST 500 1,000 2.125 12.09.2022 - Aaa - -2 42 XS1196405556 RAIFFEISEN LB NIEDEROEST 500 100,000 0.625 03.03.2025 - Aaa - -2 1 XS1681119167 RAIFFEISEN LB NIEDEROEST 500 100,000 0.375 13.09.2024 - Aaa - -2 - XS1756364474 RAIFFEISEN LB NIEDEROEST 500 100,000 0.875 24.01.2028 - Aaa - 0 - XS1871114473 RAIFFEISEN LB NIEDEROEST 500 100,000 0.625 28.08.2026 - Aaa - -1 - XS1942629061 RAIFFEISEN LB NIEDEROEST 500 100,000 0.875 30.01.2029 - Aaa - 0 - XS2100569552 RAIFFEISEN LB NIEDEROEST 500 100,000 0.375 15.01.2035 - Aaa - 0 - XS1495631993 RLB OBEROESTERREICH 500 100,000 0.375 28.09.2026 - Aaa - -1 10

Source: Market data provider, Erste Group Research (own calculations)

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Covered Bonds: Austria Outstanding EUR benchmark bonds table 2/2

Current Volume Minimum Spread (ASW) ISIN Issuer (in m) Piece Coupon Maturity S&P Moody's Fitch (Mid) Issue Spread AT0000A228U7 RLB OBEROESTERREICH 500 100,000 0.875 12.07.2028 - Aaa - 1 - AT0000A2CFT1 RLB OBEROESTERREICH 500 100,000 0.500 22.01.2035 - Aaa - 1 - AT000B092622 RAIFFEISEN LB STEIERMARK 500 100,000 0.625 20.01.2023 - Aaa - 0 21 XS0942965525 RAIFFEISEN LB STEIERMARK 500 100,000 2.375 14.06.2028 - Aaa - 1 28 AT000B093273 RAIFFEISEN LB STEIERMARK 500 100,000 1.375 11.05.2033 - Aaa - 3 - AT000B066675 RAIFFEISEN LB VORARLBERG 500 100,000 0.500 17.09.2025 - Aaa - 1 - AT000B049465 BK AUSTRIA AG 500 100,000 2.375 22.01.2024 - Aaa - -2 35 AT000B049572 UNICREDIT BK AUSTRIA AG 500 100,000 0.750 25.02.2025 - Aaa - -2 3 AT000B049598 UNICREDIT BK AUSTRIA AG 500 100,000 0.750 08.09.2022 - Aaa - 0 5 AT000B049739 UNICREDIT BK AUSTRIA AG 500 100,000 0.625 16.01.2026 - Aaa - -2 - AT000B049754 UNICREDIT BK AUSTRIA AG 500 100,000 0.625 20.03.2029 - Aaa - -2 - AT000B049788 UNICREDIT BK AUSTRIA AG 500 100,000 0.250 04.06.2027 - Aaa - -3 - AT000B049796 UNICREDIT BK AUSTRIA AG 500 100,000 0.250 21.06.2030 - Aaa - -1 - AT000B049846 UNICREDIT BK AUSTRIA AG 500 100,000 0.050 21.09.2035 - Aaa - 0 - AT000B122031 VOLKSBANK WIEN AG 500 100,000 0.375 04.03.2026 - Aaa - 0 - AT000B122049 VOLKSBANK WIEN AG 500 100,000 0.125 19.11.2029 - Aaa - 1 -

Source: Market data provider, Erste Group Research (own calculations)

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Last publications

One year into the corona crisis: what’s next? - Credit Markets Weekly (March 11, 2021) ▪ Issuer in focus: IIB ▪ Kommunalkredit: Upgrade of Public Sector Covered Bonds ▪ Issuer in focus: VOLKSBANK WIEN AG

ESG: Transparency due to Disclosure Requirements - Credit Markets Weekly (March 4, 2021) ▪ EBA Proposes Green Asset Ratio for Banks ▪ VB Wien Submits Preliminary Results for 2020 ▪ Insolvencies & Default Rates: Trends

Inflation fears: yields rising - Credit Markets Weekly (February 25, 2021)

Focus on the Second Half of 2021 - Credit Markets Weekly (February 18, 2021) ▪ BAWAG: Stable core business – Risk provisioning weighs on results ▪ Platform on Sustainable Finance starts its work

Expectations for Italy are running high - Credit Markets Weekly (February 11, 2021) ▪ ESG reporting for financial services providers

Insolvencies: Impact on the Corporate Bond Market? – Credit Markets Weekly (February 4, 2021) ▪ Are Increasing Default Rates Tantamount to a Poor Performance of High-Yield Bonds?

Negative news causing rising volatility – Credit Markets Weekly (January 28, 2021) ▪ Sustainability on the rise ▪ Schuldschein market comeback expected in 2021

Schuldschein market comeback expected in 2021 – Credit Markets Special (January 25, 2021)

Patience is a Virtue – Credit Markets Weekly (January 21, 2021) ▪ Boom in Corporate Hybrids ▪ Issuer in focus: S Immo Group

Boom in Corporate Hybrids – Credit Markets Special (January 18, 2021)

2021 – after the annus horribilis – Credit Markets Weekly (January 14, 2021) ▪ SSA: Outlook 2021 ▪ Issuer in focus: AG

ECB to remain a pillar of support in 2021 – Credit Markets Weekly (December 17, 2020) ▪ EBA expects rising loan defaults in 2021 ▪ Corporate Bonds: 2020 retrospective and 2021 outlook ▪ Higher EU climate targets 2030: the next steps

Will the ECB meet market expectations? – Credit Markets Weekly (December 10, 2020)

Sentiment remains positive – Credit Markets Weekly (December 3, 2020) ▪ CP reporting 3Q 2020: ECB Funding Boosts Covered Bond Volumes ▪ High-yield default rate and debt payoff period

Markets Expect Additional ECB Support – Credit Markets Weekly (November 26, 2020) ▪ Issuer in focus: MOL

Optimisms persists thanks to vaccine research – Credit Markets Weekly (November 19, 2020) ▪ Relentless growth in green bonds

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Contacts

Group Research Corporate Treasury Product Distribution AT Head of Group Research Head: Christian Skopek +43 (0)5 0100 84146 Friedrich Mostböck, CEFA +43 (0)5 0100 11902 Fixed Income Institutional Sales CEE Macro/Fixed Income Research Head: Juraj Kotian (Macro/FI) +43 (0)5 0100 17357 Group Securities Markets Katarzyna Rzentarzewska (Fixed income) +43 (0)5 0100 17356 Head: Thomas Einramhof +43 (0)50100 84432 Malgorzata Krzywicka (Fixed income, Poland) +43 (0)5 0100 17338 Institutional Distribution Core / Head: Jürgen Niemeier +49 (0)30 8105800 5503 Alen Kovac (Head) +385 72 37 1383 Mate Jelić +385 72 37 1443 Institutional Distribution DACH+ Ivana Rogic +385 72 37 2419 Head: Marc Friebertshäuser +49 (0)711 810400 5540 Bernd Bollhof +49 (0)30 8105800 5525 Czech Republic Andreas Goll +49 (0)711 810400 5561 David Navratil (Head) +420 956 765 439 Mathias Gindele +49 (0)711 810400 5562 Jiri Polansky +420 956 765 192 Ulrich Inhofner +43 (0)5 0100 85544 Michal Skorepa +420 956 765 172 Sven Kienzle +49 (0)711 810400 5541 Nicole Gawlasova +420 956 765 456 Rene Klasen +49 (0)30 8105800 5521 Christopher Lampe-Traupe +49 (0)30 8105800 5523 Hungary Karin Rattay +43 (0)5 0100 84118 Orsolya Nyeste +361 268 4428 Michael Schmotz +43 (0)5 0100 85542 Klaus Vosseler +49 (0)711 810400 5560 Romania Slovakia Ciprian Dascalu (Head) +40 3735 10108 Šarlota Šipulová +421 2 4862 5619 Eugen Sinca +40 3735 10435 Monika Směliková +421 2 4862 5629 Dorina Ilasco +40 3735 10436 Iulian George Misu +40 758484043 Institutional Distribution CEE & Insti AM CZ Head: Antun Burić +385 (0)7237 2439 Slovakia Jaromir Malak +43 (0)5 0100 84254 Maria Valachyova (Head) +421 2 4862 4185 Katarina Muchova +421 2 4862 4762 Czech Republic Head: Ondrej Čech +420 2 2499 5577 Major Markets & Credit Research Milan Bartoš +420 2 2499 5562 Head: Gudrun Egger, CEFA +43 (0)5 0100 11909 Ralf Burchert, CEFA (Sub-Sovereigns & Agencies) +43 (0)5 0100 16314 Institutional Asset Management Czech Republic Hans Engel (Global Equities) +43 (0)5 0100 19835 Head: Petr Holeček +420 956 765 453 Margarita Grushanina (Austria, Quant Analyst) +43 (0)5 0100 11957 Petra Maděrová +420 956 765 178 Peter Kaufmann, CFA (Corporate Bonds) +43 (0)5 0100 11183 Martin Peřina +420 956 765 106 Heiko Langer (Financials & Covered Bonds) +43 (0)5 0100 85509 David Petráček +420 956 765 809 Stephan Lingnau (Global Equities) +43 (0)5 0100 16574 Blanca Weinerová +420 956 765 317 Carmen Riefler-Kowarsch (Financials & Covered Bonds) +43 (0)5 0100 19632 Petr Valenta +420 956 765 140 Rainer Singer (Euro, US) +43 (0)5 0100 17331 Croatia Bernadett Povazsai-Römhild, CEFA (Corporate Bonds) +43 (0)5 0100 17203 Head: Antun Burić +385 (0)7237 2439 Elena Statelov, CIIA (Corporate Bonds) +43 (0)5 0100 19641 Zvonimir Tukač +385 (0)7237 1787 Gerald Walek, CFA (Euro, CHF) +43 (0)5 0100 16360 Natalija Zujic +385 (0)7237 1638 Hungary CEE Equity Research Head: Peter Csizmadia +36 1 237 8211 Head: Henning Eßkuchen +43 (0)5 0100 19634 Gábor Bálint +36 1 237 8205 Daniel Lion, CIIA (Technology, Ind. Goods&Services) +43 (0)5 0100 17420 Ádám Szönyi +36 1 237 8213 Michael Marschallinger, CFA +43 (0)5 0100 17906 Romania and Bulgaria Nora Nagy (Telecom) +43 (0)5 0100 17416 Head: Ruxandra Lungu +40 373516562 Christoph Schultes, MBA, CIIA (Real Estate) +43 (0)5 0100 11523 Thomas Unger, CFA (Banks, Insurance) +43 (0)5 0100 17344 Group Institutional Equity Sales Vladimira Urbankova, MBA (Pharma) +43 (0)5 0100 17343 Head: Brigitte Zeitlberger-Schmid +43 (0)50100 83123 Martina Valenta, MBA +43 (0)5 0100 11913 Werner Fürst +43 (0)50100 83121 Josef Kerekes +43 (0)50100 83125 Croatia/Serbia Cormac Lyden +43 (0)50100 83120 Mladen Dodig (Head) +381 11 22 09178 Czech Republic Anto Augustinovic +385 72 37 2833 Head: Michal Řízek +420 224 995 537 Magdalena Dolenec +385 72 37 1407 Jiří Fereš +420 224 995 554 Davor Spoljar, CFA +385 72 37 2825 Martin Havlan +420 224 995 551 Pavel Krabička +420 224 995 411 Czech Republic Poland Petr Bartek (Head) +420 956 765 227 Head: Jacek Jakub Langer +48 22 538 62 65 Marek Dongres +420 956 765 218 Tomasz Galanciak +48 22 538 62 12 Jan Safranek +420 956 765 218 Przemyslav Nowosad +48 22 538 62 66 Stepien Grzegorz +48 22 538 62 11 Hungary Wysocki Wojciech +48 22 538 62 17 József Miró (Head) +361 235 5131 Croatia András Nagy +361 235 5132 Damir Eror +385 (0)72 37 2836 Tamás Pletser, CFA +361 235 5135 Hungary Nandori Levente + 36 1 23 55 141 Poland Krisztian Kandik + 36 1 23 55 162 Tomasz Duda (Head) +48 22 330 6253 Balasz Zankay + 36 1 23 55 156 Cezary Bernatek +48 22 538 6256 Romania Konrad Grygo +48 22 330 6254 Liviu Avram +40 3735 16569 Emil Poplawski +48 22 330 6252 Marcin Gornik +48 22 330 6251 Group Fixed Income Securities Markets Head: Goran Hoblaj +43 (0)50100 84403 Romania Caius Rapanu +40 3735 10441 FISM Flow Head: Aleksandar Doric +43 (0)5 0100 87487 Margit Hraschek +43 (0)5 0100 84117 Group Markets Christian Kienesberger +43 (0)5 0100 84323 Ciprian Mitu +43 (0)5 0100 85612 Head of Group Markets Bernd Thaler +43 (0)5 0100 84119 Oswald Huber +43 (0)5 0100 84901 Zsuzsanna Toth +36-1-237 8209 Poland: Group Markets Retail and Agency Business Pawel Kielek +48 22 538 6223 Head: Christian Reiss +43 (0)5 0100 84012 Michal Jarmakowicz +43 50100 85611 Markets Retail Sales AT Head: Markus Kaller +43 (0)5 0100 84239 Group Fixed Income Securities Trading Head: Goran Hoblaj +43 (0)50100 84403 Group Markets Execution Head: Kurt Gerhold +43 (0)5 0100 84232 Group Equity Trading & Structuring Head: Ronald Nemec +43 (0)50100 83011 Retail & Sparkassen Sales Head: Uwe Kolar +43 (0)5 0100 83214 Business Support Bettina Mahoric +43 (0)50100 86441 Major Markets & Credit Research Page 17

For the exclusive use of Erste Group Client (Erste Group) Erste Group Research Credit Markets Weekly | Credit | Austria & CEE March 18, 2021

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For the exclusive use of Erste Group Client (Erste Group)