Prospectus dated 18 January 2021
Wintershall Dea Finance 2 B.V. (The Hague, the Netherlands) €650,000,000 Undated Subordinated Resettable Fixed Rate Notes ISIN XS2286041517, Common Code 228604151, WKN A287SZ Issue Price: 100 per cent. €850,000,000 Undated Subordinated Resettable Fixed Rate Notes ISIN XS2286041947, Common Code 228604194, WKN A287SY Issue Price: 100 per cent. each guaranteed on a subordinated basis by Wintershall Dea GmbH (Celle, Federal Republic of Germany)
Wintershall Dea Finance 2 B.V. (the "Issuer") will issue on 20 January 2021 (the "Issue Date") €650,000,000 Undated Subordinated Resettable Fixed Rate Notes (the "NC2026 Notes") and €850,000,000 Undated Subordinated Resettable Fixed Rate Notes (the "NC2029 Notes" and, together with the NC2026 Notes, the "Notes" and each a "Series of Notes") in the denomination of €100,000 each.
The NC2026 Notes and the NC2029 Notes are each unconditionally and irrevocably guaranteed by Wintershall Dea GmbH (the "Guarantor" or the "Company" and, together with all its consolidated subsidiaries, "we", "us", "our", "Wintershall Dea" or the "Group") pursuant to subordinated guarantees (the "Subordinated Guarantee for the NC2026 Notes" and the "Subordinated Guarantee for the NC2029 Notes", respectively, and together, the "Subordinated Guarantees").
The Notes and the Subordinated Guarantees will be governed by the laws of the Federal Republic of Germany ("Germany").
The NC2026 Notes will bear interest from and including 20 January 2021 (the "Interest Commencement Date") to but excluding 20 July 2026 (the "NC2026 First Reset Date") at a rate of 2.4985 per cent. per annum. Thereafter, unless previously redeemed, the NC2026 Notes will bear interest from and including the NC2026 First Reset Date to but excluding 20 July 2031 (the "NC2026 Second Reset Date") at a rate per annum equal to the Reference Rate for the relevant Reset Period (each as defined in § 3 of the terms and conditions of the NC2026 Notes (the "NC2026 Terms and Conditions")) plus a margin of 292.4 basis points per annum (not including a step-up). Thereafter, unless previously redeemed, the NC2026 Notes will bear interest from and including the NC2026 Second Reset Date at a rate per annum equal to the Reference Rate for the relevant Reset Period plus a margin of 392.4 basis points per annum (including a step-up of 100 basis points).
Interest on the NC2026 Notes will be payable annually in arrear on 20 July of each year, commencing on 20 July 2021 (short first coupon).
The NC2029 Notes will bear interest from and including the Interest Commencement Date to but excluding 20 January 2029 (the "NC2029 First Reset Date") at a rate of 3.000 per cent. per annum. Thereafter, unless previously redeemed, the NC2029 Notes will bear interest from and including the NC2029 First Reset Date to but excluding 20 January 2034 (the "NC2029 Second Reset Date") at a rate per annum equal to the Reference Rate for the relevant Reset Period (each as defined in § 3 of the terms and conditions of the NC2029 Notes (the "NC2029 Terms and Conditions" and together with the NC2026 Terms and Conditions, the "Terms and Conditions")) plus a margin of 331.9 basis points per annum (not including a step-up). Thereafter, unless previously redeemed, the NC2029 Notes will bear interest from and including the NC2029 Second Reset Date at a rate per annum equal to the Reference Rate for the relevant Reset Period plus a margin of 431.9 basis points per annum (including a step-up of 100 basis points).
Interest on the NC2029 Notes will be payable annually in arrear on 20 January of each year, commencing on 20 January 2022. The Issuer is entitled to defer interest payments under each Series of Notes under certain circumstances (as set out in § 4(1) of the relevant Terms and Conditions) (such payments the "Deferred Interest Payments"). Such Deferred Interest Payments will not bear interest. The Issuer may pay such Deferred Interest Payments (in whole or in part) at any time upon due notice (as set out in § 4(2) of the Terms and Conditions) and will be required to pay such Deferred Interest Payments (in whole, but not in part) under certain other circumstances (as set out in § 4(3) of the Terms and Conditions).
The Notes have no final maturity date. The Issuer may redeem (i) the NC2026 Notes during the period from and including 20 April 2026 to and including the NC2026 First Reset Date or on any Interest Payment Date of the NC2026 Notes thereafter and (ii) the NC2029 Notes during the period from and including 20 July 2028 to and including the NC2029 First Reset Date or on any Interest Payment Date of the NC2029 Notes thereafter.
The Issuer may call the NC2026 Notes for redemption (in whole but not in part) with effect as of any date prior to but excluding 20 April 2026 at their relevant Make-whole Amount. The Issuer may call the NC2029 Notes for redemption (in whole but not in part) with effect as of any date prior to but excluding 20 July 2028 at their relevant Make-whole Amount. The "Make-whole Amount" will be the higher of the Principal Amount of the relevant Series of Notes or their Present Value (as defined in the Terms and Conditions).
The Issuer may further redeem all outstanding Notes of each Series at any time upon occurrence of a (i) Gross-up Event, (ii) a Tax Event, (iii) an Accounting Event or (iv) a Rating Agency Event or (v) in case of minimal outstanding aggregate principal amount (all as defined and further described in the Terms and Conditions).
Each Series of Notes will initially be represented by a temporary global note in bearer form (each a "Temporary Global Note"). Interests in a Temporary Global Note will be exchangeable, in whole or in part, for interest in a permanent global note in bearer form (each a "Permanent Global Note" and together with the Temporary Global Note, the "Global Notes") not earlier than 40 days after the Issue Date (the "Exchange Date"), upon certification as to non-U.S. beneficial ownership. The Global Notes will be kept in custody by a common safekeeper on behalf of both Clearstream Banking S.A and Euroclear Bank SA/NV (together, the "Clearing System").
This prospectus (the "Prospectus") does not constitute a prospectus within the meaning of Regulation (EU) No 1129/2017 of the European Parliament and of the Council of 14 June 2017 (as amended, the "Prospectus Regulation"). Neither the Luxembourg Financial Supervisory Authority, the Commission de Surveillance du Secteur Financier, nor any other "competent authority" (as defined in the Prospectus Regulation) has approved this Prospectus or reviewed information contained in this Prospectus.
This Prospectus constitutes a prospectus for the purpose of Part IV of the Luxembourg Law of 16 July 2019 on Prospectuses for Securities. Application has been made to list the Notes on the official list (the "Official List") of the Luxembourg Stock Exchange and for admission to trading of the Notes on the Euro MTF Market operated by the Luxembourg Stock Exchange, which is a multilateral trading facility for the purposes of Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments, as amended, ("MiFID II"), and, therefore, not an EU-regulated market.
This Prospectus will be published in electronic form together with all documents incorporated by reference on the website of the Luxembourg Stock Exchange (www.bourse.lu).
This Prospectus does not constitute an offer to sell, or the solicitation of an offer to buy, the Notes in any jurisdiction where such offer or solicitation is unlawful.
The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and subject to certain exceptions, the Notes may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons.
Prospective purchasers of the Notes should ensure that they understand the nature of the Notes and the extent of their exposure to risks and that they consider the suitability of the Notes as an investment in light of their own circumstances and financial condition. Investing in the Notes involves certain risks. Please review the section entitled "Risk Factors" beginning on page 13 of this Prospectus.
Joint Bookrunners
Citigroup Commerzbank (Structuring Advisor)
HSBC Santander
SMBC Nikko UniCredit
2 RESPONSIBILITY STATEMENT
The Issuer, with registered office in The Hague, the Netherlands, and the Guarantor, with registered office in Celle, Germany, accept responsibility for the information contained in this Prospectus and hereby declare that, having taken all reasonable care to ensure that such is the case, the information contained in this Prospectus is, to the best of their knowledge, in accordance with the facts and does not omit anything likely to affect the import of such information.
The Issuer and the Guarantor further confirm that (i) this Prospectus contains all information with respect to the Issuer, the Guarantor and the Group, to the Notes and the Subordinated Guarantees which is material in the context of the issue and offering of the Notes, including all information which, according to the particular nature of the Issuer, the Guarantor, the Notes and the Subordinated Guarantees is necessary to enable investors and their investment advisers to make an informed assessment of the assets and liabilities, financial position, profits and losses, and prospects of the Issuer, the Guarantor and the Group and of the rights attached to the Notes and the Subordinated Guarantees; (ii) the statements contained in this Prospectus relating to the Issuer, the Guarantor, the Group, the Notes and the Subordinated Guarantees are in every material respect true and accurate and not misleading; (iii) there are no other facts in relation to the Issuer, the Guarantor, the Group, the Notes or the Subordinated Guarantees the omission of which would, in the context of the issue and offering of the Notes, make any statement in this Prospectus misleading in any material respect; and (iv) reasonable enquiries have been made by the Issuer and the Guarantor to ascertain such facts and to verify the accuracy of all such information and statements.
NOTICE
No person is authorised to give any information or to make any representation other than those contained in this Prospectus and, if given or made, such information or representation must not be relied upon as having been authorised by or on behalf of the Issuer, the Guarantor or the Joint Bookrunners (as defined in the section "Subscription and Sale of the Notes").
This Prospectus should be read and understood in conjunction with any supplement hereto and any documents incorporated herein or therein by reference.
Each investor contemplating purchasing any Notes should make its own independent investigation of the financial condition and affairs, and its own appraisal of the creditworthiness, of the Issuer and the Guarantor. This Prospectus does not constitute an offer of Notes or an invitation by or on behalf of the Issuer, the Guarantor or the Joint Bookrunners to purchase any Notes. Neither this Prospectus nor any other information supplied in connection with the Notes should be considered as a recommendation by the Issuer, the Guarantor or the Joint Bookrunners to a recipient hereof and thereof that such recipient should purchase any Notes.
This Prospectus reflects the status as of its date. The offering, sale and delivery of the Notes and the distribution of this Prospectus may not be taken as an implication that the information contained herein is accurate and complete subsequent to the date hereof or that there has been no adverse change in the financial condition of the Issuer or the Guarantor since the date hereof.
To the extent permitted by the laws of any relevant jurisdiction, neither any Joint Bookrunner nor any of its respective affiliates nor any other person mentioned in this Prospectus, except for the Issuer and the Guarantor, accepts responsibility for the accuracy and completeness of the information contained in this Prospectus or any document incorporated by reference, and accordingly, and to the extent permitted by the laws of any relevant jurisdiction, none of these persons accept any responsibility for the accuracy and completeness of the information contained in any of these documents. The Joint Bookrunners have not independently verified any such information and accept no responsibility for the accuracy thereof.
This Prospectus does not constitute, and may not be used for the purposes of, an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not authorised or to any person to whom it is unlawful to make such offer or solicitation.
3 The distribution of this Prospectus and the offering, sale and delivery of the Notes in certain jurisdictions may be restricted by law. Persons into whose possession this Prospectus comes are required to inform themselves about and to observe any such restrictions. For a description of the restrictions applicable in the EEA, the United States of America, Singapore and the United Kingdom, see "Subscription and Sale of the Notes – Selling Restrictions".
The Notes issued pursuant to this Prospectus are complex financial instruments and are not a suitable or appropriate investment for all investors. In some jurisdictions, regulatory authorities have adopted or published laws, regulations or guidance with respect to the offer or sale of securities such as the Notes to retail investors.
For the avoidance of doubt the content of any website referred to in this Prospectus does not form part of this Prospectus and the information on such websites has not been scrutinised or approved by the Luxembourg Stock Exchange.
The language of this Prospectus is English. In respect of the Terms and Conditions German is the controlling and legally binding language.
In this Prospectus all references to "€", "EUR" or "Euro" are to the currency introduced at the start of the third stage of the European Economic and Monetary Union, and as defined in Article 2 of Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the Euro, as amended.
MIFID II PRODUCT GOVERNANCE / TARGET MARKET: PROFESSIONAL INVESTORS AND ECPS ONLY
Solely for the purposes of each manufacturer’s product approval process, the target market assessment in respect of both Series of Notes has led to the conclusion that: (i) the target market for the Notes is eligible counterparties and professional clients only, each as defined in MiFID II; and (ii) all channels for distribution of the Notes to eligible counterparties and professional clients are appropriate. Any person subsequently offering, selling or recommending the Notes (a "distributor") should take into consideration the manufacturers’ target market assessment; however, a distributor subject to MiFID II is responsible for undertaking its own target market assessment in respect of the Notes (by either adopting or refining the manufacturers’ target market assessment) and determining appropriate distribution channels.
PRIIPS REGULATION / PROHIBITION OF SALES TO EEA AND UK RETAIL INVESTORS
The Notes are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the European Economic Area ("EEA"). For these purposes, a retail investor means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of MiFID II; or (ii) a customer within the meaning of Directive (EU) 2016/97 (as amended, the "Insurance Distribution Directive"), where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II. Consequently, no key information document required by Regulation (EU) No 1286/2014 (as amended, the "PRIIPs Regulation") for offering or selling the Notes or otherwise making them available to retail investors in the EEA has been prepared and therefore offering or selling the Notes or otherwise making them available to any retail investor in the EEA may be unlawful under the PRIIPs Regulation.
The Notes are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the United Kingdom ("UK"). For these purposes, a retail investor means a person who is one (or more) of: (i) a retail client, as defined in point (8) of Article 2 of Regulation (EU) No 2017/565 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 ("EUWA"); or (ii) a customer within the meaning of the provisions of the Financial Services and Markets Act 2000 (the "FSMA") and any rules or regulations made under the FSMA to implement Directive (EU) 2016/97, where that customer would not qualify as a professional client, as defined in point (8) of Article 2(1) of Regulation (EU) No 600/2014 as it forms part of domestic law by virtue of the EUWA. Consequently no key information document required by Regulation (EU) No 1286/2014 as it forms part of domestic law by virtue of the EUWA (the "UK PRIIPs Regulation") for offering or selling the Notes or otherwise making them available to retail investors in the UK has been prepared and
4 therefore offering or selling the Notes or otherwise making them available to any retail investor in the UK may be unlawful under the UK PRIIPs Regulation.
Where acting as agent on behalf of a disclosed or undisclosed client when purchasing, or making or accepting an offer to purchase, any Notes (or any beneficial interests therein) from the Issuer, the Guarantor and/or the Joint Bookrunners the foregoing representations, warranties, agreements and undertakings will be given by and be binding upon both the agent and its underlying client.
SINGAPORE SECURITIES AND FUTURES ACT PRODUCT CLASSIFICATION
In connection with Section 309B of the Securities and Futures Act (Chapter 289) of Singapore (the "SFA") and the Securities and Futures (Capital Markets Products) Regulations 2018 of Singapore (the "CMP Regulations 2018"), the Issuer has determined, and hereby notifies all relevant persons (as defined in Section 309A(1) of the SFA), that the Notes are ‘prescribed capital markets products’ (as defined in the CMP Regulations 2018) and Excluded Investment Products (as defined in MAS Notice SFA 04-N12: Notice on the Sale of Investment Products and MAS Notice FAA-N16: Notice on Recommendations on Investment Products).
BENCHMARK REGULATION: STATEMENT ON REGISTRATION OF BENCHMARK ADMINISTRATOR
Following the respective First Reset Date, interest amounts payable under each Series of the Notes are calculated by reference to the annual swap rate for swap transactions denominated in Euro with a term of 5 years, which appears on the Reuters Screen Page ICESWAP2 and which is provided by ICE Benchmark Administration Limited ("IBA"). As at the date of this Prospectus, IBA appears on the register of administrators and benchmarks established and maintained by the European Securities and Markets Authority ("ESMA") pursuant to Article 36 of the Benchmark Regulation (Regulation (EU) 2016/1011) (the "Benchmark Regulation").
STABILISATION
IN CONNECTION WITH THE ISSUE OF THE NOTES, CITIGROUP GLOBAL MARKETS EUROPE AG (THE "STABILISING MANAGER") (OR ANY PERSON ACTING ON BEHALF OF ANY STABILISING MANAGER) MAY OVER-ALLOT NOTES OR EFFECT TRANSACTIONS WITH A VIEW TO SUPPORTING THE MARKET PRICE OF THE NOTES AT A LEVEL HIGHER THAN THAT WHICH MIGHT OTHERWISE PREVAIL. HOWEVER, STABILISATION MAY NOT NECESSARILY OCCUR. ANY STABILISATION ACTION MAY BEGIN ON OR AFTER THE DATE ON WHICH ADEQUATE PUBLIC DISCLOSURE OF THE TERMS OF THE OFFER OF THE NOTES IS MADE AND, IF BEGUN, MAY CEASE AT ANY TIME, BUT IT MUST END NO LATER THAN THE EARLIER OF 30 DAYS AFTER THE ISSUE DATE OF THE NOTES AND 60 DAYS AFTER THE DATE OF THE ALLOTMENT OF THE NOTES. ANY STABILISATION ACTION OR OVER-ALLOTMENT MUST BE CONDUCTED BY THE STABILISING MANAGER (OR ANY PERSON ACTING ON BEHALF OF THE STABILISING MANAGER) IN ACCORDANCE WITH ALL APPLICABLE LAWS AND RULES.
FORWARD-LOOKING STATEMENTS
This Prospectus includes certain “forward-looking statements”. All statements other than statements of historical facts included in this Prospectus, including, without limitation, those regarding the Issuer’s, the Guarantor’s and the Group’s financial positions, business strategies, plans and objectives of management for future operations, are forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “aim”, “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intend”, “may”, “plan”, “project”, “probability”, “target”, “goal”, “objective”, “should” or “will” or, in each case, their negative, or other variations or comparable terminology. Such forward- looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Issuer, the Guarantor or the Group, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking
5 statements. Such forward-looking statements are based on numerous assumptions regarding the Issuer’s, the Guarantor’s or the Group’s, as applicable, present and future business strategies and the environment in which the Issuer, the Guarantor or the Group, as applicable, will operate in the future. In addition, even if their financial condition, results of operations and cash flows, and the development of the industry in which they operate, are consistent with the forward-looking statements contained in this Prospectus, those results or developments may not be indicative of results or developments in subsequent periods.
Factors that could cause such differences in actual results include (but are not limited to): hydrocarbon prices, the quantity and quality of the Group’s reserves and resources, operational risks inherent in the Group’s exploration, production and transportation activities, competition in the oil and gas industry, policy changes and shifts towards alternative energy, among other factors, also discussed in "Risk Factors".
The foregoing factors should not be construed as exhaustive. Other sections of this Prospectus describe additional factors that could adversely affect the Issuer’s, the Guarantor’s or the Group’s business, financial condition or results of operations. Moreover, they operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible to predict all such risk factors. The Issuer, the Guarantor and the Group cannot assess the impact of all risk factors on their business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results.
Any forward-looking statements in this Prospectus speak only as of the date on which they are made. The Issuer, the Guarantor and the Group expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in their respective expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
LIKE-FOR-LIKE FINANCIAL INFORMATION
The Group comprises Wintershall Dea GmbH and its subsidiaries, including Wintershall Dea International GmbH (formerly Wintershall Dea Deutschland AG, formerly DEA Deutsche Erdoel AG) ("Dea"). The Group was formed on 1 May 2019 through the combination of the:
• oil and gas business (including the midstream business) of BASF SE ("BASF") which was held in Wintershall Holding GmbH (as the Company was named until the Merger) ("Wintershall") and its subsidiaries; and
• the oil and gas business of LetterOne Holdings S.A. ("LetterOne"), comprising Dea and its subsidiaries (the "Merger").
Due to the history of the Group, this Prospectus contains certain like-for-like historical financial information as of and for the periods from 1 January to 31 December 2018 and 1 January to 31 December 2019 (the "Like-for-Like Financial Information").
This Like-for-Like Financial Information is derived from the addition of the consolidated financial statements of Wintershall, the consolidated financial statements of Dea for the relevant periods and the consolidated financial statements of the Group, as applicable.
The Like-for-Like Financial Information accounts for the new reporting format adapted in preparation of the Merger, but only reflects to the effects of the purchase price allocation from 1 May 2019 onwards. Investors should note that the Like-for-Like Financial Information is therefore not reconcilable from the audited historical financial information of the relevant entities.
The Like-for-Like Financial Information is not intended to illustrate how the results or financial situation of the Group would have stood if the Merger had been effective as of 1 January 2018 or as of 1 January 2019. The Like- For-Like Financial Information therefore do not constitute pro-forma financial information. The Like-for-Like Financial Information is not indicative of the actual performance of the Group during any historical period or a projection of its operations or performance at any future date or for any future period.
6 The Like-for-Like Financial Information was prepared for illustrative information only and is unaudited.
NON-IFRS FINANCIAL MEASURES
This Prospectus contains non-IFRS measures and ratios, including adjusted EBITDAX ("EBITDAX"), adjusted net income, Capex (including and excluding M&A), free cash flow, total debt, net debt and net debt to EBITDAX that are not required by, or presented in accordance with, International Financial Reporting Standards ("IFRS") as adopted by the EU.
The non-IFRS measures and ratios may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of the operating results of Wintershall, Dea or the Group as reported under IFRS. The Group’s management uses these items to measure operating performance and liquidity in presentations to its Management Board and as a basis for strategic planning and forecasting, as well as monitoring certain aspects of our operating cash flow and liquidity. The Group presents non-IFRS measures and ratios because it believes that they and similar measures are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and liquidity. Non-IFRS measures such as EBITDAX, adjusted net income or free cash flow are not measurements of the Group’s performance or liquidity under IFRS and should not be considered as alternatives to operating profit, profit for the year, or any other performance measures derived in accordance with IFRS or as alternatives to cash flow from operating, investing or financing activities.
For additional information see "Description of the Guarantor and the Group – Historic Financial Information for the Guarantor and the Group – Non-IFRS Financial Measures".
7 TABLE OF CONTENTS
CERTAIN RESERVES, RESOURCES AND PRODUCTION INFORMATION ...... 9
RISK FACTORS ...... 12
USE OF PROCEEDS ...... 43
TERMS AND CONDITIONS OF THE NC2026 NOTES ...... 44
TERMS AND CONDITIONS OF THE NC2029 NOTES ...... 100
THE SUBORDINATED GUARANTEE FOR THE NC2026 NOTES ...... 156
THE SUBORDINATED GUARANTEE FOR THE NC2029 NOTES ...... 164
DESCRIPTION OF THE ISSUER ...... 172
DESCRIPTION OF THE GUARANTOR AND THE GROUP ...... 175
TAXATION ...... 237
SUBSCRIPTION AND SALE OF THE NOTES ...... 246
GENERAL INFORMATION ...... 250
DOCUMENTS INCORPORATED BY REFERENCE ...... 252
8 CERTAIN RESERVES, RESOURCES AND PRODUCTION INFORMATION
Reserves and Resources
Certain of the Group’s gas and oil reserves and resources data presented in this Prospectus has been prepared by the Group’s management and independently evaluated by DeGolyer & MacNaughton Corporation ("D&M") with respect to all relevant assets of the Group as of 31 December 2019 in accordance with the Petroleum Resource Management System ("PRMS") Revised June 2018 sponsored by the Society of Petroleum Engineer’s ("SPE"), as well as standards developed by the World Petroleum Council ("WPC"), the American Association of Petroleum Geologists ("AAPG"), the Society of Petroleum Evaluation Engineers ("SPEE"), the Society of Exploration Geophysicists ("SEG"), the Society of Petrophysicists and Well Log Analysts ("SPWLA") and the European Association of Geoscientists and Engineers ("EAGE").
The reserves and resources information presented in this Prospectus is categorized as follows:
• "1P reserves", or "proved reserves", are those quantities of petroleum, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under defined economic conditions, operating methods, and government regulations. If deterministic methods are used, the term reasonable certainty is intended to express a high degree of confidence that the quantities will be recovered. If probabilistic methods are used, there should be at least a 90 per cent. probability that the quantities actually recovered will equal or exceed the estimate.
• "2P reserves", or "proved plus probable reserves", are 1P reserves plus those additional reserves which analysis of geoscience and engineering data indicate are less likely to be recovered than 1P reserves. It is equally likely that actual remaining quantities recovered will be greater than or less than the estimated 2P reserves. In this context, when probabilistic methods are used, there should be at least a 50 per cent. probability that the actual quantities recovered will equal or exceed the 2P reserves estimate.
• "2C resources" or "contingent resources", are those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from known accumulations by application of development projects but which are as of the date of this Prospectus not considered to be commercially recoverable owing to one or more contingencies, of the same technical confidence as probable, but not commercially matured to Reserves.
• "economically viable" contingent resources are those quantities associated with technically feasible projects where cash flows are positive under reasonably forecasted conditions but are not reserves because they do not meet all commercial criteria.
Estimated reserves presented herein may differ from estimates made in accordance with guidelines and definitions used by other companies in the industry.
As of 31 December 2019, 100 per cent. of the Group’s 2P reserves and the majority of 2C contingent resources were independently evaluated by D&M.
Reserve figures as of 31 December 2019 as presented in this Prospectus may not be directly comparable to the figures for this period included in the Annual Report as of and for the short fiscal year ended 31 December 2019 of the Group as reserve figures presented in the Annual Report as of and for the short fiscal year ended 31 December 2019 were based on the Group’s internal estimates on a working interest basis.
Typical to the industry in which the Group operates, there are a number of uncertainties inherent in estimating quantities of 1P and 2P reserves and 2C resources. Therefore, the reserves and resources information in this Prospectus represents only estimates. Reserves and resources assessment is a subjective process of estimating underground accumulations of oil and gas that cannot be measured in an exact manner. The accuracy of any reserves or resources estimate is a function of a number of variable factors and assumptions, many of which are beyond the Group’s control.
9 Prospective investors should not place undue reliance on the ability of the estimates of 1P and 2P reserves and 2C resources to predict actual 1P and 2P reserves and 2C resources or on comparisons of similar reports concerning other companies, and this Prospectus should be accepted with the understanding that our financial performance subsequent to the date of the estimates may necessitate revision of the 1P and 2P reserves and 2C resources information set forth herein.
See "Risk Factors — Risks relating to the Guarantor and the Group — The oil and gas reserves and resources data presented in this Prospectus are estimates that may vary significantly from the actual quantities that may be recovered".
Unless otherwise indicated, all production figures contained in this Prospectus are presented on a working interest basis to the Group, whereas all reserves figures are presented on a net entitlement basis. Working interest is the Group’s percentage ownership in a project which corresponds to the percentage of costs for the project that it is required to pay. Net entitlement represents the net volume attributed to the Group due to its various contract agreements in different jurisdictions. Forecasts of production for the Group’s individual assets are derived from internal production estimates and those included in the D&M Report (as defined below). The Group’s legal interest and effective working interest in the relevant fields and license areas are separately disclosed. See "Description of the Guarantor and the Group—Material Agreements" for a more detailed discussion of the terms of the agreements governing the Group’s interests.
Hydrocarbon Data
The reports referenced in this Prospectus use the following estimates:
• oil and gas condensate in standard millions of barrels ("MMbbl") (a barrel being the equivalent of 42 U.S. gallons);
• natural gas in billion cubic metres ("bcm"), billions of cubic feet ("bcf") and trillions of cubic feet ("tcf") at standard temperature and pressure bases;
• natural gas liquids ("NGL") and liquefied petroleum gas ("LPG") in millions of barrels ("MMbbl"); and
• liquid in standard thousands of barrels of oil equivalent ("mboe") and standard millions of barrels of oil equivalent ("MMboe").
This Prospectus presents certain production and reserves-related information on an "equivalency" basis. The Group’s conversion of data for tonnes into barrels and from cubic feet into barrels of oil equivalent ("boe") may differ from that data used by other companies. For the figures as of 31 December 2019, the Group has assumed a conversion rate of 5.600 bcf to 1 MMboe for all its assets.
These conversions were based on an energy equivalency conversion method primarily applicable at the burner tip and do not represent value equivalencies at the wellhead. Although these conversion factors are an industry accepted convention, they are not reflective of price or market value differentials between product types.
Presentation in Independent Reserves Evaluator Reports
D&M has carried out assessments of certain fields in the Group’s asset base in all countries on a historical basis and provided its independent estimate as of 31 December 2019 in reports and related appendices dated 30 June 2020 (the "D&M Report").
The technical personnel responsible for preparing the independent estimate of reserves and resources of the Group’s assets at D&M meet the requirements regarding qualifications, independence, objectivity and confidentiality set forth by the SPE. D&M is an independent consultancy and does not own an interest in the Group’s properties and is not employed on a contingent fee basis.
10 Commercial Partners
In this Prospectus, when describing activities in relation to licenses and assets in which the Group holds interests, references to "we", "our" and similar words mean, depending on the context, the Group and its commercial partners with interests in such licenses and assets.
To the extent not otherwise indicated, the information contained in this Prospectus on the market environment, market developments, market and economic growth rates, market trends and competition in the markets in which the Group operates is based on the Issuer’s and the Guarantor’s assessments and estimates.
These assessments are, in turn, based on publicly available sources, including, but not limited to, third-party studies or estimates that are also primarily based on data or figures from publicly available sources.
11 RISK FACTORS
Before deciding to purchase the Notes, investors should carefully review and consider the following risk factors and the other information contained in this Prospectus. Should one or more of the risks described below materialise, this may have a material adverse effect on the business, prospects, shareholders’ equity, assets, financial position and results of operations (Vermögens-, Finanz- und Ertragslage) or general affairs of the Issuer, the Guarantor or the Group. Moreover, if any of these risks occur, the market value of the Notes and the likelihood that the Issuer or the Guarantor will be in a position to fulfil their payment obligations under the Notes or the Subordinated Guarantees, respectively, may decrease, in which case the holders of the Notes (the "Noteholders") could lose all or part of their investments. Factors which the Issuer and the Guarantor believe may be material for the purpose of assessing the market risks associated with the Notes are also described below.
The Issuer and the Guarantor believe that the factors described below represent the principal risks inherent in investing in the Notes, but the Issuer and/or the Guarantor may be unable to pay interest, principal or other amounts on or in connection with the Notes for other reasons than those described below. Additional risks of which the Group is not presently aware could also affect the business operations of the Group and have a material adverse effect on the Group's business activities and financial condition and results of operations. Prospective investors should read the detailed information set out elsewhere in this Prospectus (including any documents incorporated by reference herein) and reach their own views prior to making any investment decision.
The order in which the risks are presented does not necessarily reflect the likelihood of their occurrence or the magnitude of their potential impact on the business, financial condition and results of the operations of the Group.
Words and expressions defined in the Terms and Conditions of the Notes below shall have the same meanings in this section.
Potential investors should, among other things, consider the following:
Risks relating to the Issuer
Finance subsidiary
As a finance company within the Group, the Issuer raises capital in order to lend funds to companies of the Group. Hence, it in general faces the risk that loans granted by it may not be repaid when due and payable for whatever reason.
All loans are granted to either the Guarantor or to one of its Group companies. Therefore, the risk of no repayment is directly dependent on the Guarantor or the respective Group company.
The ability of the Guarantor to meet its obligations under the Subordinated Guarantees is affected as outlined in the risk factors in the subsection entitled "Risks relating to the Guarantor and the Group" below. As a consequence, these risk factors also apply with regard to the Issuer.
Risks relating to the Guarantor and the Group
The Group’s business depends significantly on hydrocarbon prices, which can be volatile, and are impacted by global economic conditions
The Group’s revenues, cash flow, reserves and resources estimates, profitability and growth depend substantially on prevailing international and local prices of the hydrocarbons that the Group produces. Hydrocarbon prices are volatile and depend on factors beyond the Group’s control, including, but not limited to:
• changes in global and regional supply and demand, and expectations regarding future supply and demand for oil and gas products;
• the ability and willingness of the members of the Organization of the Petroleum Exporting Countries ("OPEC") and other oil-producing nations to set and maintain specified levels of production and prices;
12 • access and proximity to, and the capacity and cost of, pipelines, shipping vessels, storage platforms, transportation and refining infrastructure for oil and gas;
• prices and availability of new technologies that increase oil and gas production or that promote fuel efficiency, thereby impacting supply or demand;
• geopolitical uncertainty, including political, economic and military developments in oil and gas producing regions, particularly the Middle East / North Africa, Russia and Latin America, as well as originating from US policies;
• government regulations and actions, including changes to subsidies, the imposition of export restrictions, taxes, repatriations and nationalizations, regulation and sanctions and unusually long authority procedures;
• increasing government regulations, actions and international treaties and agreements which aim to reduce the environmental impact of oil and gas exploration, development and production activities, including the emission of greenhouse gases and increased expenditure for producers to comply with such regulations, actions, treaties and agreements;
• policy actions, including government subsidies for alternative energy, protests or litigation, against the oil and gas industry and fossil fuel extraction or transportation;
• terrorism or the threat of terrorism, war or threat of war, which may affect supply, transportation or demand for hydrocarbons and refined petroleum products; weather conditions and natural disasters;
• trading and speculative activities by market participants and others seeking to secure access to oil and gas or to hedge against commercial risks, or as part of investment portfolio activity;
• the level and effect of trading in commodity futures markets; and
• fluctuations in exchange rates of the U.S. dollar, the currency in which the world’s oil trade is generally denominated, with the Euro, which is the Group’s reporting currency, and other currencies in which the Group incurs operating expenses, such as the Russian rouble, the Norwegian kroner and Argentine peso.
The global prices of oil and gas have declined significantly since 2014 and reached a multi-decade low in April of 2020.
Following the outbreak of SARS-CoV-2 and its associated disease ("Covid-19") and due to an absence of an agreement to cut production among OPEC countries, oil prices dropped drastically below $20/bbl in April of 2020. Prices recovered to and stabilized at levels above $45/bbl in December 2020 due to an OPEC agreement on a significant production cut as a response to the prevailing volatility in oil prices and an improved Covid-19 pandemic outlook. As of the date of this Prospectus, prices are driven, and are expected to be driven in the future, largely by general uncertainty about the recovery of the global economic activity and further development of the Covid-19 pandemic and the containment action taken globally in response thereto, such as restrictions on travel, imposition of quarantines, prolonged closures of workplaces, or curfews or other social distancing measures.
European gas prices have been similarly volatile, falling from €29/MWh in September 2018 to €5/MWh in June 2020. This decline has been driven by global gas market oversupply resulting from growth in European domestic gas supply and significant LNG expansion, especially in Australia, the United States and Russia, which has exceeded global LNG demand growth. The winter 2019/20 was warm both in Europe and Asia, further contributing to gas market oversupply. Further demand decrease from Covid-19 related containment measures worsened existing conditions, pushing prices to historic lows in the first half of 2020. Gas prices recovered from these historic lows due to economic recovery, particularly in Asia, and due to the anticipation of a potentially cold winter in 2020/2021.
The Group’s profitability is determined in large part by the difference between the revenues received from the oil and gas that it produces, net income and dividends from its midstream business and its investments on the one hand, and operational costs, taxation, as well as costs incurred in transporting and selling its oil and gas on the other. Consequently, lower prices for oil and gas may reduce its revenues, cash flow and profitability, and therefore the
13 amount of oil and gas that the Group is able to produce economically, or may reduce the economic viability of the production levels of specific wells or of planned exploration and development projects.
Current global economic conditions, including instability in certain emerging markets, are likely to have significant long-term effects on the Group’s operating results. Global economic growth drives demand for energy from all sources, including oil and gas. A lower future economic growth rate could result in decreased demand growth for the Group’s oil and gas production as well as lower commodity prices, which could reduce its cash flows and profitability. Additionally, the Group has in the past and may, in the future, revise its underlying price assumptions for impairment testing requiring the Group to impair the value of its assets.
A further decline or continued volatility in the prices of oil and/or gas or a downturn in global economic conditions could have a material adverse effect on its business, financial condition and results of operations.
The oil and gas reserves and resources data presented in this Prospectus are estimates that may vary significantly from the actual quantities that may be recovered
While estimates of reserves and resources are inherently uncertain, the categorization of reserves accounts for the range of uncertainty in the estimates. However, it is important to consider the reserves and resources set forth in this Prospectus represent estimates only and should not be construed as exact quantities, and they are subject to revision. The estimates are based on technical experts’ reports and have been independently evaluated in accordance with PRMS guidelines and definitions by independent reserves evaluator. PRMS guidelines may differ from guidelines used to prepare reserves and resources data in other jurisdictions, such as in the United States where SEC guidelines apply. Investors, therefore, should not place undue reliance on the forward-looking statements with respect to the Group’s estimated reserves and resources and should not assume that the data found in the reserves and resources information is directly comparable to similar information that has been prepared in accordance with the reserves and resources reporting standards of other jurisdictions.
Following the Merger, the Group has integrated and aligned its reserves and resources reporting as of 31 December 2019, which is evaluated by a single independent evaluator as of the date of this Prospectus. Such reserves independent evaluator may have used different assumptions in its production of its reserves report than previous reserves auditors of the Group (see also "As a result of the Merger, the oil and gas reserves and resources data presented in this Prospectus is not fully comparable to other reporting" below) or estimates previously published by the Group.
In general, estimates of economically recoverable oil and gas reserves and resources are based on a number of factors, variables and assumptions made as of the date on which the reserves and resources estimates were determined, such as geological and engineering estimates (which have inherent uncertainties), historical production from the properties, the assumed effects of regulation by government agencies and estimates of future production profiles, commodity prices, investments and operating costs, all of which may vary significantly from actual results.
Underground accumulations of hydrocarbons cannot be measured in an exact manner and estimates thereof are a subjective process aimed at understanding the statistical probabilities of recovery. Estimates of the quantity of economically recoverable gas and oil reserves and resources, rates of production and the timing of development expenditures depend upon several variables and assumptions, including the following:
• production history compared with production from other comparable producing areas;
• quality and quantity of available data;
• interpretation of the available geological and geophysical data;
• effectiveness of the applied technologies and equipment;
• effects of regulations adopted by government agencies;
• future operating costs, tax on the extraction of commercial minerals, development costs and workover and abandonment costs;
• future percentages of international sales;
14 • future commodity prices;
• capital investments; and
• the judgement of the persons preparing the estimate.
As all reserves and resources estimates are subjective, each of the following items may differ materially from those assumed in estimating reserves and resources:
• the quantities and qualities that are ultimately recovered;
• the timing of the recovery of gas and oil reserves and resources;
• the amount and timing of additional exploration and future development expenditures;
• the production and operating costs incurred; and
• future hydrocarbon sales prices.
Many of the factors in respect of which assumptions are made when estimating reserves and resources are beyond the Group’s control and therefore these estimates may prove to be incorrect over time. Evaluations of reserves and resources necessarily involve multiple uncertainties. The accuracy of any reserves and resources evaluation depends on the quantity and quality of available information and data as well as on reservoir engineering and geological interpretation and judgement. Results of drilling, interpretation, testing and production after the date of the estimates may require substantial upward or downward revisions in the Group’s reserves and resources data. Moreover, different reserves engineers may make different estimates of reserves and resources and cash flows based on the same available data. Due to the inherent uncertainties and the limited nature of reservoir data and the inherently imprecise nature of reserves or resources estimates, the initial reserves or resources estimates are often different, and may be materially different, from the quantities of oil and gas that are ultimately recovered.
Further, the Company is currently conducting its internal reserves and resources reporting as of 31 December 2020; in parallel, reserves and contingent resources are independently evaluated by the independent evaluator D&M with the same effective date. At the time of the publication of this Prospectus, the Company anticipates a decline in its internally reported reserves and resources as of 31 December 2020 when compared to its reserves and resources as of 31 December 2019, and expects the same to be the case with respect to the result of the independent evaluation by D&M. The decline is primarily driven by volumes produced during the year 2020 (approximately 613 mboe/d for the period 1 January 2020 to 30 September 2020) and the changes with respect to technical and economic evaluation of assets, whereof significant parts are already comprised in impairment charge taken during the second quarter of 2020 (related to lower commodity price assumptions and reduced reserve expectations in the West Nile Delta development in Egypt).
If the assumptions upon which the estimates of the Group’s gas and oil reserves and resources have been based prove to be incorrect, or if the actual reserves and resources available to it are otherwise less than the current estimates or of lesser quality than expected, the Group may be unable to recover and produce the estimated levels or quality of oil, gas and other hydrocarbons set out in this Prospectus and this could have a material and adverse effect on its business, prospects, financial condition and results of operations as the estimates of the Group’s gas and oil reserves and resources are an indicator of the future potential of the Group’s performance.
As a result of the Merger, the oil and gas reserves and resources data presented in this Prospectus is not fully comparable to other reporting
Reserves and resources data as at 31 December 2019 provided in this Prospectus is based on the D&M Report. Reserve figures as of 31 December 2019 as presented in this Prospectus may not be directly comparable to the figures for this period included in the Annual Report as of and for the short fiscal year ended 31 December 2019 of the Group as reserve figures presented in the Annual Report as of and for the short fiscal year ended 31 December 2019 were based on the Group’s internal estimates on a working interest basis.
In addition, pre-merger internal reserves estimates in historical reports of Wintershall and Dea were prepared using standards and classifications that differ from those used in the preparation of the D&M Report. As such, the reserves
15 and resources information in this Prospectus may not be directly comparable to historical reporting of Wintershall and Dea.
Investors must exercise caution when using such data to evaluate the Group’s oil and gas reserves and production data.
The Group faces numerous operational risks inherent in its exploration, production, transportation and sales activities that may affect its ability to produce oil and gas at expected levels, quality and costs
The Group’s operations are subject to numerous risks inherent in the exploration, production, transportation and sales of hydrocarbons. These risks include, but are not limited to, encountering unusual or unexpected drilling conditions, rock formations or geological pressures, geological uncertainties, adverse weather conditions, seismic shifts, tremors, blowouts, oil spills, uncontrollable flows of oil, gas or well fluids, explosions, fires, improper installation or operation of equipment and equipment damage and shutdowns or failure. Additionally, a potential Covid-19 outbreak on a production site or a platform may also lead to major operational problems such as, for example, a complete production shutdown. Further, the Group may be required to curtail, delay or cancel certain drilling operations because of a Covid-19 outbreak leading to project delays and production cuts. Other potential factors impeding drilling operations and/or production possibilities might be breaches of security, title problems, government requirements, sales restrictions caused by lack of demand e.g. during potential shut-downs of customers operations because of Covid-19 outbreak, labour disputes or shortages or delays in the availability of drilling rigs and the delivery of equipment.
In addition, all modes of transportation and storage of hydrocarbons are subject to damage from natural catastrophes, severe storms or other severe weather conditions and involve significant hazards that could result in fires, explosions, spills and other unexpected or dangerous conditions. Underground natural gas storage facilities, in particular, are vulnerable to gas migration and other issues as a result of geological formations or historical well structures. A loss of containment of hydrocarbons and other hazardous materials could occur during transportation by pipeline, rail or road. Given the high volumes of hydrocarbons that the Group produces and transports in the ordinary course of business, the occurrence of any of the above risks could reduce or shut down its production wells, cause the loss of equipment or negatively impact the projected economic performance of its projects. The occurrence of any of the foregoing risks may result in environmental damage, injury to persons and loss of life, damage to its property, delays to or loss of production and third-party liabilities. The Group could also suffer damage to its reputation, loss of licenses and be subject to penalties and/or criminal sanctions, which could have a material adverse effect on its business, financial condition and results of operations.
The Group faces risks to the equipment, services, storage, transportation facilities and infrastructure used in its exploration and production activities, including those owned, controlled or operated by third parties
The Group relies on oil and gas field suppliers and contractors to provide materials and services in conducting its exploration and production activities. The current crisis caused by Covid-19 is also affecting the Group’s oil and gas field suppliers and contractors. Some of these companies may face bankruptcy risk potentially resulting in the inability to discharge their contractual obligations. Oil and gas development and exploration activities are dependent upon, among others, the availability of drilling rigs, vessels and related third-party equipment or services. High demand for such equipment or services or access restrictions may affect the availability and cost of, and the Group’s access to, such equipment and services and may delay the Group’s development and exploration activities. Failure by it or its contractors to secure necessary equipment or services could materially and adversely affect its business, financial condition and results of operations. In addition, prices for the equipment and services that the Group depends on to conduct its business may not be sustained at levels that enable it to operate profitably. Any competitive pressures on these oil and gas field suppliers and contractors, or substantial increases in the worldwide prices of commodities, such as steel, could result in a material increase in costs of the equipment and services required to conduct the Group’s business. Any increases in costs could have a material adverse effect on its operating income, cash flows and borrowing capacity and may require a reduction in the carrying value of its properties, its planned level of spending for exploration and development and the level of its reserves and resources.
In order to monetise its production, the Group also relies on storage and transportation facilities and infrastructure to deliver its hydrocarbons from the production site to loading terminals or further mid- and downstream facilities,
16 which are often owned, controlled or operated by third-parties, some of whom are its competitors. If an operator of these facilities or infrastructure fails to perform its obligations satisfactorily or substantially increases transportation tariffs or there are limits on available capacity due to higher than expected demand, this may lead to delays or the curtailment of transportation or delivery of its hydrocarbons. Even where the Group has some contractual control over the transportation of its production through firm transportation arrangements, third-party systems and facilities may be temporarily unavailable due to market conditions or operational issues or other reasons, including adverse weather conditions, capacity constraints or geopolitical instability, which could have a material adverse effect on its business, financial condition and results of operations. Further, these third-party operators could become subject to increased tariffs imposed by government regulators or the operators or owners of the transportation systems available for the transport of its hydrocarbons, which could result in decreased offtaker demand and downward pricing pressure. In addition, its transportation arrangements with customers vary such that, in certain circumstances, the Group remains liable for transportation risks in delivering its production to its customers. If the Group is unable to access the requisite transportation and other infrastructure necessary to convey its production to its customers, its operations could be materially and adversely affected.
The oil and gas industry is highly competitive, and the Group may not be able to keep up with technological developments in its industry
The oil and gas industry is highly competitive, including in regions where the Group has assets. The key areas where the Group faces competition include:
• acquisition of exploration and production licenses, or interests in such licenses, at auctions or sales run by government authorities or companies already owning such licenses;
• acquisition of other companies that may already own licenses or existing hydrocarbon producing assets;
• purchase, leasing, hiring, chartering or other procuring of equipment that may be scarce;
• engagement of third-party service providers whose capacity to provide key services may be limited;
• ability to dispose of assets;
• securing additional offtakers of production;
• differentiating technologies;
• employment of qualified, experienced and skilled management and oil and gas professionals; and
• access to financing, including the debt and equity markets.
Competition in the Group’s industry is intense and depends, among other things, on the number of competitors in the market, their financial resources, their degree of geological, geophysical, engineering and management expertise, their degree of vertical integration, their ability to select, acquire and develop reserves and properties on time and on budget, their ability to foster and maintain relationships with host governments of the countries in which they have assets and their pricing policies. The Group’s competitors include entities with greater technical, physical and financial resources. A recent trend among investors, which also increases competitive pressures, is for financial institutions and investment funds to financially support viable management teams with proven oil and gas experience to acquire resources and establish investments in the oil and gas sector and lock in supply. When looking at acquisition opportunities, the Group also frequently competes with major national and state-owned enterprises, which typically possess significant financial resources and are able to offer attractive and favourable prices to sellers. The effects of operating in a competitive industry may include higher than anticipated prices for the acquisition of licenses or assets, acquisition of licenses or assets with lower than anticipated expected future production volumes, licensing terms providing for increased obligations, the hiring by competitors of key management, restrictions on the availability or increase in cost of equipment or services.
In addition, the oil and gas industry is characterised by rapid and significant technological advancements and introduction of new products and services using new technologies and may involve a certain degree of risk in their implementation. The Group invests resources in technological improvements and advancements in many areas of its
17 business which may not deliver the expected efficiencies or returns on its investments. As others use or develop new technologies, the Group may be placed at a competitive disadvantage or may be forced by competitive pressures to implement those new technologies at substantial costs. Other oil and gas companies may have greater financial, technical and personnel resources that allow them to exploit technological advantages, which may in the future allow them to implement new technologies before the Group can. The Group may not be able to respond to these competitive pressures or implement new technologies on a timely basis or at an acceptable cost. If one or more of the technologies that the Group uses now or in the future were to become obsolete, its business could be adversely impacted.
If the Group is unsuccessful in competing against other companies, its business, financial condition and results of operations could be adversely affected.
A shift towards alternative energy could have an adverse effect on the Group’s industry
Increased environmental awareness and the improved competitiveness of "green" technologies have led to a global trend in recent years towards greater fuel efficiency and a shift to alternative energy sources. There is a risk that improvements in fuel efficiency over the near-term, whether due to technological advancements or more stringent regulation, could lower demand for oil and gas. For example, several jurisdictions have introduced programmes to incentivise the use of more environmentally-friendly vehicles by offering subsidies or tax breaks or by banning the use of vehicles using conventional petroleum-based fuels. The roll-out of these and similar schemes across the Group’s markets could reduce demand for vehicles with diesel and gasoline engines, which would, in turn, lower demand for oil and gas. Legislative changes and a shift in consumer preference towards alternative fuels could have a material adverse effect on the Group’s strategy, business, financial condition and results of operations.
Climate change abatement legislation against fossil fuel extraction and transportation may have a material adverse effect on the Group’s industry
Global responses to climate and related energy issues are an area of increasing focus in both the public and private sectors around the world. In recent years, international, federal, state and local governments have taken steps to reduce emissions of greenhouse gases. The spread of Covid-19 has also led to a change of consumption behaviour of individuals and corporations which in turn has an impact on the emission of greenhouse gases. The Group’s operations are associated with emissions of greenhouse gases, greenhouse gas emissions-related laws, policies and regulations, including the Paris Agreement on Climate Change and related legislation and regulations implementing its stated goals. Compliance with these obligations may result in substantial capital, compliance, operating and maintenance costs which cannot be reliably estimated. These pieces of legislation or regulatory initiatives could also have a material adverse effect on the Group’s business by diminishing the demand for oil and gas, increasing its cost structure or causing unexpected delays and disruptions to its operations. In addition, policy approaches that promote and subsidise the usage of alternative energy sources, including solar, wind power, hydro-electric, biofuels, and other "green" initiatives could have a material adverse impact on levels of demand for oil and gas.
The Group faces various risks associated with the trend toward increased anti-oil and gas development activity
In recent years, the Group has seen significant growth in opposition to oil and gas development globally. Companies in the oil and gas industry can be the target of opposition to hydrocarbon development from stakeholder groups, including national, state and local governments, regulatory agencies, non-governmental organizations, local communities and public citizens. This opposition is focused on attempting to limit or stop hydrocarbon development or extraction activities in or transportation from certain areas. Examples of such opposition include: efforts to reduce access to public and private lands; delaying or cancelling permits for drilling or pipeline construction; limiting or banning industry techniques such as hydraulic fracturing, and/or adding restrictions on the use of water and associated disposal; imposition of set-backs on oil and gas sites; delaying or denying air-quality permits; advocating for increased regulations, punitive taxation, citizen ballot initiatives or moratoriums on industry activity; and the use of social media channels to cause reputational harm.
In addition, in recent years, there has been a shift in investor sentiment away from extractive industries, including oil and gas production. If this trend continues, it could lead to reduced or less favourable access to capital markets and other sources of funding for companies in these industries, including the Group.
18 The Group may also incur costs associated with responding to these anti-development efforts, including legal challenges, or complying with any new legal or regulatory requirements resulting from these efforts, which could have a material adverse effect on its business, financial condition and results of operations.
The Group is exposed to the cyclical nature of the oil and gas industry
The oil and gas industry has historically 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. Third-party oil field equipment materials and service costs are also subject to these supply and demand dynamics. For example, during periods of decreasing levels of industry exploration and production, the demand for, and cost of, drilling rigs and oil field services decreases. Conversely, during periods of increasing levels of industry activity, the demand for, and cost of, drilling rigs and oil field services increases. As a result, during certain points in the cycle, drilling rigs and oil field services may not be available at rates that allow a satisfactory return on its investment.
In addition, demand for oil and gas products fluctuates in line with expectations of economic growth. There can be no assurance that future growth in demand for oil and gas will be sustained or that the Group will not be affected by industry over-supply, which could have a material adverse effect on its business, financial condition and results of operations.
The Group has been formed through the Merger and there are risks associated with integrating the constituent businesses
The combination of two separate businesses is a complex, costly and time-consuming process. While the active phase of the post-merger integration process was completed as of 31 December 2020, the Group will be required to devote further management attention and resources to complete the combination of the business practices and operations of its two legacy companies. A failure to meet the challenges involved in combining the two businesses and to realise the anticipated benefits of the transactions could cause an interruption of, or a loss of momentum in, the activities of the Group and could adversely affect the results of operations of the Group.
The overall combination of Wintershall’s and Dea’s businesses may also result in material unanticipated problems, expenses, liabilities, competitive responses or loss of customer and other business relationships. The difficulties of combining the operations of the companies include, among others:
• difficulties in integrating operations and systems, such as information technology, financial reporting and communications systems;
• difficulties in achieving anticipated synergies, business opportunities and growth prospects from the combination;
• difficulties in managing the expanded operations of a significantly larger and more complex company;
• challenges in conforming standards, controls, procedures and accounting and other policies, business cultures and compensation structures between the two companies;
• integrating the companies’ financial reporting and internal control systems;
• challenges in keeping existing customers and obtaining new customers;
• difficulties with employees as a result of planned redundancies;
• attracting and retaining key personnel;
• the diversion of management attention to integration matters;
• the impact of the additional debt financing expected to be incurred in connection with the Merger;
• contingent liabilities that are larger than expected; and
• potential unknown liabilities, adverse consequences and unforeseen increased expenses associated with the Merger.
19 In addition, as of the date of this Prospectus, the Group relies on certain IT services provided by BASF pursuant to transitional services agreements, which are time limited with some due to expire as early as 2021. When BASF no longer provides these IT services, if the Group is unable to undertake them internally or to find a suitable external provider in a timely manner, at a reasonable cost or at all, its business could be adversely affected.
Many of the foregoing factors are outside its control and any one of them could result in increased costs, decreased expected revenues and diversion of management time and energy, which could materially impact its business, financial condition and results of operations. In addition, the full benefits of the Merger may not be realised, including the synergies or sales or growth opportunities that are expected. These benefits may not be achieved within the anticipated time frame, or at all. Further, additional unanticipated costs may be incurred during the integration process. All of these factors could decrease or delay the expected accretive effect of the Merger.
The Group may be unsuccessful in finding, acquiring, developing and producing oil and gas reserves and resources that are economically recoverable
The Group’s future success depends on its ability to find and develop or acquire additional oil and gas reserves and resources that are economically recoverable. Oil and gas exploration and production activities are capital intensive and fundamentally uncertain in their outcome. In addition, it is difficult to estimate the costs of implementing any exploration and/or project development programme due to the inherent uncertainties of drilling in unknown formations, the costs associated with encountering various drilling conditions such as over pressured zones and changes in drilling plans and locations.
Even if wells are productive, they may not produce sufficient net revenues to return a profit after drilling, operating and other costs. Completion of a well does not assure a profit on the investment or recovery of drilling. Completion and operating costs and drilling hazards and environmental requirements can lead to cost overruns, project delays and under-performance of assets. In addition, various field operating conditions, including, but not limited to, delays in obtaining government approvals, permits, licenses, authorizations or consents, shut-ins of connected wells, insufficient storage or transportation capacity or other geological and mechanical conditions may also adversely affect production from successful wells.
Under most of its license and concession agreements, the Group partially or fully finances exploration, development and operations and the related facilities and equipment and will only recover its costs (which are often capped) if there is successful production. Additionally, the treatment of the exploration and development of oil and gas under its license and concession agreements is frequently ambiguous leading to uncertain terms as to cost recovery and entitlements to oil and gas discoveries. If the Group is unsuccessful in its exploration, appraisal and development activities, the Group may be unable to meet its production targets and its reserves, resources and production may decline, which could have a material adverse effect on its business, financial condition and results of operations.
Additionally, mature producing oil and gas reservoirs are generally characterised by declining production rates that vary depending upon reservoir characteristics and other factors. The rate of decline will change if production from existing wells declines in a different manner than the Group has estimated and can change under other circumstances. Thus, its future oil and gas reserves, resources and production and, therefore, its cash flow and results of operations, are highly dependent upon the Group’s success in efficiently developing and exploiting its current properties and economically finding or acquiring additional recoverable reserves and resources. The Group may not be able to develop, find or acquire additional reserves and resources to replace its current and future production at acceptable costs. If the Group is unable to replace its current and future production, its reserves and resources will decrease, and its business, financial condition and results of operations could be materially and adversely affected.
The Group’s exploration and production operations must comply with its obligations under licenses, contracts and development plans
The Group’s exploration and development operations must be carried out in accordance with the terms of the applicable production sharing contracts, licenses, operating agreements, annual work programmes and budgets. Pursuant to legislation in the jurisdictions in which the Group does business, the Group or its commercial partners in joint ventures, as applicable, may be subject to fines or a suspension or termination of license if a license holder (which, in certain cases, are third parties) or party to a related agreement fails to comply with its obligations under
20 the relevant license or agreement, to make timely payments of royalties and taxes, provide the required geological information or meet other reporting requirements. In addition, the Group and its commercial partners, as applicable, have obligations to develop the fields in accordance with specific requirements under certain licenses and related agreements, field development plans, laws and regulations and certain licenses may contain terms that place restrictions on the Group, including change of control clauses. If the Group or its partners were to fail to satisfy such obligations with respect to a specific field, the Group or its partners may incur fines and penalties or the production sharing contract, the license or related agreements for that field may be suspended, revoked or terminated. For example, a failure to submit a development plan on time and/or to get an approval from a responsible government authority may result in the delay of a development or the forfeiture of the relevant license, which could have a material adverse effect on the Group’s reserves and resources, expected future production, business, financial condition and results of operations.
In addition, a portion of the licenses pursuant to which the Group conducts operations are solely exploration licenses, which have a limited life before the Group is obliged to seek to convert the license to a production license, extend the license or relinquish the license area. If hydrocarbons are discovered during the exploration license term, the Group or its commercial partners, as applicable, may be required to apply for a production license before commencing production. However, no assurance can be given that any necessary production licenses will be granted by the relevant authorities.
The authorities in the jurisdictions in which the Group does business are typically authorised to, and do from time to time, inspect its assets to verify compliance by the Group or its commercial partners, as applicable, with relevant laws, regulations and the licenses or the agreements pursuant to which the Group conducts its business. There can be no assurance that the views of the relevant government agencies regarding the development of the fields that the Group or its commercial partners operate or the compliance with the terms of the licenses pursuant to which the Group conducts such operations will coincide with the Group’s views, which could lead to disputes with the relevant authorities.
In addition, sometimes it may be difficult to ascertain whether the Group has complied with obligations under production sharing contracts and licenses as the extent of such obligations may be unclear or ambiguous and regulatory authorities in jurisdictions in which the Group does business may not be forthcoming with confirmatory statements that work obligations have been fulfilled, which can lead to further operational uncertainty.
The occurrence of any of the above risks could have a material adverse effect on its business, financial condition and results of operations.
The Group is exposed to a significant number of laws and regulations which are subject to change and differing interpretation
The activities of the Group are exposed to extensive laws and regulations governing various matters. These include laws and regulations relating to bribery and corruption, taxation, antitrust, financial and gas markets regulations, economic sanctions, environmental protection, management and use of hazardous substances, management of natural resources, licenses over resources owned by various governments, exploration, development of projects, production and post-closure reclamation, the employment of expatriates, labour and occupational health and safety standards, and historical and cultural preservation. The terms attaching to any permit or license to operate may be onerous. Additionally, in many of the developing countries where the Group operates, the legal systems may not be mature and legal practice may not be developed, such that, in certain cases, there may be significant uncertainty as to the correct legal position, as well as the possibility of laws changing or new laws and regulations being enacted, which has the potential to render the Group unable to enforce its understanding of title, permits or other rights, as well as to increase compliance costs.
These laws and regulations may allow government authorities and private parties to bring lawsuits based upon damages to property and injury to persons resulting from the environmental, health and safety, regulatory and other impacts of the Group’s past and current operations, and could lead to the imposition of substantial fines, penalties, other civil or criminal sanctions, the curtailment or cessation of operations, orders to pay compensation, orders to remedy the effects of violations and/or orders to take preventative steps against possible future violations. Moreover, the costs associated with compliance with these laws and regulations are substantial. Any changes to these laws or
21 regulations or more stringent enforcement or restrictive interpretation of current laws and regulations, particularly with respect to environmental matters and remediation obligations, by government authorities or rulings or clearances obtained from such government authorities could cause additional expenditure to be incurred or impose restrictions on, or suspensions of, the Group’s operations and delays in the development of its properties. Failure to obtain, maintain or renew a necessary permit could mean that the Group would be unable to proceed with the development or continued operation of an asset. In addition, certain of the Group’s assets are located in countries where title to land and rights in respect of land and resources (including indigenous title) has not been and may not always be clear, creating the potential for disputes over resource development. Disputes relating to an asset could disrupt or delay production or other projects and/or impede the Group’s ability to develop new assets.
In addition, the enactment of new laws, regulations and sanctions as well as changes to existing laws and regulations (including, but not restricted to, environmental laws, the imposition of higher license fees and hydrocarbon royalties or taxes), compliance with which could be expensive or onerous, could also have a material adverse impact on the ability of the Group to operate its businesses and/or the profitability of its assets. For example, the adopted amendments to the EU Gas Directive (Directive 2009/73/EC of 13 July 2009 concerning common rules for the internal market in gas) extended the scope of European regulation to offshore import pipelines in territorial waters of EU Member States, which have not been subject to this regulation previously.
Furthermore, the Group does business in jurisdictions and with counterparties who have, in the past, and may in the future, become the targets of economic sanctions. These sanctions can be imposed or altered with little or no advance notice. The Group is committed to complying with all applicable sanctions in its business and taking all necessary measures in order to mitigate risks to its business as a result of the imposition of or changes in applicable sanctions regimes. There can be no assurance that compliance with applicable sanctions will not impose additional costs on the Group.
The Group is exposed to significant political risk
The Group operates and owns interests in assets in a large number of geographic regions and countries, some of which are complex or have unstable political or social climates and, as a result, is exposed to a wide range of political, economic, regulatory, social and tax environments. These environments are subject to change in a manner that may be materially adverse for the Group, including uncertainty around and changes to government policies and regulations governing industrial production, foreign investment, inflation, capital and price controls, import and export controls, tariffs, subsidies, income and other forms of taxation (including policies relating to the granting of advance rulings on taxation matters), nationalization or expropriation of property, repatriation of income, royalties, the environment, labour and health and safety.
Volatile oil and gas prices and other factors in recent years have resulted in stricter natural resource policies in some countries, with governments repudiating or renegotiating contracts or licenses with, and expropriating assets from, companies that are producing in such countries. The hydrocarbons that the Group produces and sells, are considered strategic resources for particular countries. Governments in these countries may decide not to recognize previous arrangements if they regard them as no longer being in the national interest. Governments may also implement export controls on commodities regarded by them as strategic or place restrictions on foreign ownership of production, exploration or development assets. Renegotiation or nullification of existing agreements, licenses, concessions, permits or tax rulings, changes in fiscal policies (including new or increased taxes or royalty rates) and currency restrictions imposed by the governments of countries in which the Group operates could all have a material adverse effect on the Group.
In recent years, the Group has been subject to significant changes in fiscal policy from certain countries around the world as the global geopolitical climate has evolved, partly affected by fluctuations in oil and gas prices. Continued changes may negatively impact the financial results of existing assets and projects and reduce anticipated future returns and overall level of prospective investment in those countries. In addition, there may be uncertainty around changes in and the enforcement of applicable tax regimes, which can make planning of future investments challenging.
The Group transacts business in locations where it is exposed to a greater-than-average risk of overt or effective expropriation or nationalization, including in countries where the government has previously expropriated assets held
22 within the jurisdiction of other companies or where members of the government have publicly proposed that such action be taken. In addition, title to the Group’s hydrocarbon rights may be challenged or impugned, and title insurance may not generally be available. In many cases, the government of the country in which a particular asset is located is the sole authority able to grant such rights and, in some cases, may have limited infrastructure and limited resources which may severely constrain the Group’s ability to ensure that it has obtained secure title to individual exploration licenses or extraction rights. A successful challenge to the Group’s hydrocarbon extraction rights may result in the Group being unable to proceed with the development or continued operation of a well or project. In some instances, the government’s authority to grant extraction rights may be challenged. Although the Group may not be a party to these actions, its ability to develop the relevant assets may be compromised.
The Group’s operations may also be affected by political and economic instability in or in relation to the countries in which it operates. Such instability could be caused by, among other things, terrorism, civil war, guerrilla activities, military repression, civil disorder, crime, workforce instability, change in government policy or the ruling party, economic or other sanctions imposed by other countries, extreme fluctuations in currency exchange rates or high inflation.
The Group operates in emerging markets such as Argentina, Egypt and Russia which are subject to greater risks than other markets, including economic, political, infrastructure and legal risks. For instance, as Russia produces and exports large quantities of crude oil, natural gas and other commodities, the Russian economy is particularly vulnerable to fluctuations in the prices of crude oil, natural gas and other commodities on the world market. Emerging markets such as Argentina, Egypt and Russia are also subject to heightened volatility based on economic, military and political conflicts. For example, the economic sanctions imposed on certain Russian companies and individuals by the U.S., EU and other countries, and the respective counter-sanctions imposed by Russia to foreign trade and companies have had a significant impact on the Russian economy. The resulting geopolitical tensions and sanctions programs have had and could continue to have an adverse effect on the Russian economy, accelerating capital flight from Russia and resulting in volatility on the Russian markets and impacting foreign producers. In addition, the Russian political system remains vulnerable to popular dissatisfaction and social unrest, and such instability could adversely affect the value of investments in Russia. The Group also faces legal risks in doing business in emerging markets such as Argentina and Egypt since the investment climate, and related legal framework, is still evolving. For example, the government of Argentina has imposed foreign exchange controls in response to volatility in the financial markets. Such developments could impact the enforceability of contracts and may result in unpredictable and inconsistent interpretation of applicable law, which, in turn, could have an adverse impact on the Group.
The geopolitical risks associated with operating in a large number of regions and countries, if realised, could affect the Group’s ability to manage or retain interests in its production, exploration and development assets and could have a material adverse effect on the profitability, ability to finance or, in extreme cases, viability of one or more of its industrial assets. Although the Group’s production, exploration and development assets are geographically diversified across various countries, disruptions in certain of its industrial operations at any given time could have a material adverse effect on the business and results of operations and financial condition of the Group.
The Group may not be able to achieve its strategic goals and finance its activities
The Group sets a number of operational and project targets in order to achieve its overall strategic goals. There can be no assurance, however, that the Group will be able to meet these strategic goals on time or at all. The Group’s business requires significant capital expenditures, including in the areas of exploration and development, production and transportation, as well as to meet its obligations under environmental laws and regulations. If the Group is unable to finance its activities, the Group may delay or abandon its business or technical plans, fall behind in its maintenance requirements or be unable to take advantage of business opportunities.
The Group relies on cash flows from its operating and financing activities to finance its capital expenditures. If its operating cash flows decrease or the Group is unable to otherwise raise financing on acceptable terms, the Group will have to reduce or shift its planned capital expenditures. Any such reduction or shift could materially and adversely affect its ability to expand its business, achieve its strategic targets and, if the reductions are severe enough, could adversely affect its ability to maintain its operations at current levels. If any of these risks were to materialise, they could have a material adverse effect on its business, financial condition and results of operations.
23 The Group conducts most of its operations with commercial partners, including through joint ventures, which may increase the risk of disagreements, delays, scope changes, additional costs or the suspension or termination of the licenses or the agreements that govern its assets
The Group has entered into business ventures with commercial partners, including through incorporated or unincorporated joint ventures, in respect of the majority of its assets. The Group holds non-controlling stakes in the majority of these joint ventures and consortia. It is possible that its interests and those of its commercial partners may not always be aligned, resulting in possible project delays, additional costs or disagreements.
To the extent that the Group is not the operator of its gas and oil assets, the Group will be dependent on its commercial partners acting as operators and may have limited ability or be unable to direct or control operations, the timing and performance of such activity or the costs thereof. Where the Group is the operator of an asset, it is also dependent on constructive engagement with its partners. Any mismanagement of a gas or oil property by one of its commercial partners may result in delays or increased costs. The terms of any relevant operating agreement generally impose standards and requirements in relation to an operator’s activities, but there can be no assurance that the operator will observe these standards or requirements in practice. There is also a risk that a commercial partner may elect not to participate in certain activities which require that party’s consent and it may not be possible for the Group to undertake such activities alone or in conjunction with the remaining commercial partners at the desired time or at all.
The majority of the Group’s partners are other integrated oil and gas companies. The Group has multiple projects with certain of them, including Gazprom, Total and Equinor. While the considerable experience as working partner benefits its operations, the Group is also exposed to concentration risk with respect to these partners. In addition, as the Group has pre-funding arrangements with certain of its commercial partners, the Group may suffer unexpected and significant costs or other losses if its commercial partners become insolvent or otherwise unable to pay debts as they come due or if they default on their obligations to fund capital or other obligations. The Group may, in turn, be subject to claims by its commercial partners regarding alleged non-compliance with its obligations.
Furthermore, failure by its commercial partners to comply with obligations under relevant licenses or the agreements may cause these licenses or agreements to revert back to the relevant government authority who can then reallocate them. Although in many cases the Group would expect the relevant government authority to permit it to continue operations at a field during a reallocation process, there can be no assurance that the Group will be able to continue operations pursuant to these reclaimed licenses or that any transition related to the reallocation of a license would not materially disrupt its operations or development and production schedule.
The Group’s exit strategy in relation to any particular oil and gas interest may also be subject to the prior approval of its commercial partners. The terms of operating agreements often require commercial partners to approve an incoming participant to the business venture or provide them with pre-emption rights with respect to the transfer of its interest, either of which could affect its ability to sell or transfer an interest.
In addition, some of the Group’s partners in joint venture arrangements are its competitors. A protracted disagreement between the Group and any of its joint venture partners could seriously disrupt the normal operations and management of its projects, and adversely affect the Group’s revenues from them. Furthermore, even though as of the date of this Prospectus the Group does not expect material changes to the ownership of its joint ventures, there can be no assurance that there will not be changes in the ownership or management structure of its current joint ventures, or any other joint venture that the Group may enter into in the future, and the effect of any such change or failure to conduct business as planned could have a material adverse effect on its business.
The Group is exposed to risks related to its midstream business
The Group has economic interests in onshore and offshore gas pipelines in Germany and Northern Europe. The onshore pipelines are operated by regulatory unbundled subsidiaries, whereas the existing offshore systems are operated by a third party in which the Group has a minority share. This midstream business, which is accounted for at equity, has historically been a stable source of income. The European gas transportation business is heavily regulated. The regulatory framework applicable to the subsidiaries involved in natural gas transport in the EU has historically been stable, with the exception of a sudden change in the EU Gas Directive in 2019, which extended the scope of EU regulation to the territorial waters of the EU member states. However, the risk of further regulatory
24 intervention, both in the general framework, the level of return on equity and in the operation and expansion of gas pipeline systems, for example, as part of investment measures ordered under national net development plans or in relation to the connection of biogas or hydrogen, cannot be excluded.
The Group also partly finances Nord Stream 2 AG. The Group’s involvement with the Nord Stream 2 project is limited to the provision of loans together with major European energy companies. The US has decided to put the Nord Stream 2 project in a broader geopolitical framework and threatens all industries or parties involved in the project with sanctions. As of the date of this Prospectus, further investments into the financing arrangements to which the Group is a party are no longer grandfathered under the revised Public Guidance for Section 232 of the "Countering America’s Adversaries Through Sanctions Act" published on 15 July 2020. Further disbursements under the financing agreements would therefore be subject to a direct sanction risk. However, there are no such disbursements planned as of the date of this Prospectus. The US State Department clarified, that activities undertaken prior to 15 July 2020 will not be sanctioned if they have been in compliance with the previous guidance, which all of our Groups activities were. Those recent activities of the US could have severe consequences for the construction of Nord Stream 2. The US government is expected to take an aggressive approach toward the contractors of the project. On 20 October 2020, this was underlined with the publication of a Public Guidance to the "Protecting Europe's Energy Security Act", which puts additional pressure on all contractors of pipelay vessels that are working for Nord Stream 2. Within the scope of the "Protecting Europe's Energy Security Clarification Act" ("PEESCA"), end of December 2020, further sanctions have been enacted as part of the "National Defense Authorization Act" 2021. PEESCA targets basically all contractors for the project completion and pre-commissioning. The financial investors are not targeted.
In addition, Nord Stream 2 AG may be required to sell certain parts of the pipeline located in German territorial waters to comply with new German regulations due to "ownership unbundling". There is a risk that in the current macro environment, and in particular due to the ongoing dispute with the US, Nord Stream 2 AG may not be able to find a suitable buyer for the stake in the pipeline, which could in turn jeopardize the granting of the necessary operating licenses.
Any of the points described above could lead to a business risk for the Group in case the project cannot be completed and, as a consequence, loans cannot be repaid, or in case of a different interpretation of the sanctions language by US authorities.
The Group may face unanticipated costs in connection with decommissioning obligations
Licensees are typically obliged under the terms of relevant production sharing contracts or production agreements, licenses or local law to dismantle and remove equipment, to cap or seal wells and generally to remediate production sites. In connection with the sale or transfer of its assets, the Group may retain or be liable for decommissioning liabilities, even if the Group has not contractually agreed to accept these liabilities. Decommissioning costs are also uncertain due to possible changes in the relevant legislation and increasingly stringent environmental requirements. The financial statements included elsewhere in this Prospectus make provisions based on the Group’s estimate of the aggregate decommissioning costs to be incurred at the end of each of its interests in licenses. These are estimates based on facts and circumstances known as of the date of such financial statements including the then extent of its operations. No guarantee can be given that these provisions will be sufficient to address future liabilities. An increase in these decommissioning costs could materially and adversely affect its business, prospects, financial condition and results of operations.
The Group depends on its Management Board and other key personnel to effectively manage its business
The Group’s future operating results depend in significant part upon the continued contribution of its Management Board, key senior management and technical, financial and operations personnel. The Group’s success is dependent on the ability of its Management Board and management to operate its growing business and to manage the ongoing changes from the Merger. In addition, the personal connections and relationships of its Management Board and key management with many of its joint venture partners are important to the conduct of its business. If the Group were to unexpectedly lose a member of its key management or fail to maintain one of the strategic relationships of its key management team, its business and results of operations could be materially adversely affected.
25 In addition, the Group uses independent advisers and contractors to provide it with certain technical assistance and services. The Group relies upon the owners and operators of rigs and drilling equipment, and upon providers of field services, to drill and develop its prospects to production. The Group also relies upon the services of other third- parties to explore or analyse its prospects to determine a method in which the prospects may be developed in a cost- effective manner. In certain cases, the Group may exercise limited control over the activities and business practices of these providers and any inability on its part to maintain satisfactory commercial relationships with them or their failure to provide quality services could adversely affect its business.
Attracting additional and retaining existing skilled personnel is fundamental to the continued growth of its business. The Group requires skilled personnel in both technical and non-technical business areas. Personnel costs, including salaries, are increasing as the general level of prices and inflation grow, the standard of living rises in the countries in which the Group has assets and as industry-wide demand for suitably qualified personnel increases. No assurance can be given that the Group will successfully attract new personnel or retain the existing personnel required to continue to expand its business and to successfully execute and implement its business strategy.
Any damage to the Group’s business reputation could adversely affect its business
The Group’s reputation is extremely important to its business for numerous reasons including, but not limited to, finding commercial partners for business ventures, acquiring new business, farming-in into new licenses, obtaining adequate financing on acceptable terms, securing existing and granting new licenses from governments, procuring offtake contracts, attracting contractors and employees and negotiating favourable terms with suppliers.
Some of the Group’s current and potential exploration and development activities are located in or near communities that may regard such operations as having a detrimental effect on their safety or environmental, economic or social circumstances and the Group has been in the past, and may, in the future, be subjected to complaints and legal proceedings from members of such communities. The continued success of the Group’s operations and projects are in part dependent upon broad support of and a healthy relationship with the respective local communities in which the Group operates. If it is perceived that the Group is not respecting or advancing the economic and social progress and safety of the local communities, its reputation could be damaged, which could have a negative impact on its "social license to operate", its ability to secure new resources and labour and the safety and security of the Group’s workforce and assets. In addition, any negative perception of the oil and gas industry, due to the actions of other businesses in the industry or external factors, could be imputed to the Group, and negatively impact the way the Group is perceived.
Any damage to the Group’s reputation, whether arising from litigation, regulatory, supervisory or enforcement actions, matters affecting its financial reporting or compliance with administrative agencies in the jurisdictions in which the Group does business, negative publicity, including from environmental activists, or the conduct of its business or otherwise, could materially and adversely affect its business, prospects, financial condition or results of operations.
The Group is exposed to risks in relation to compliance with anti-corruption laws and regulations and economic sanctions programmes, including sanctions against Russia
The Group is exposed to the risk of violating anti-corruption laws and sanctions regulations applicable in those countries where the Group, its commercial partners or agents do business. Some of the international locations in which the Group does business may lack a developed legal system and have high levels of corruption. The global nature of its business and the Group’s continued expansion, including in developing countries, exposes it to the increased risk of violations of anti-corruption laws, sanctions regulation or similar laws. Violations of anti-corruption laws and sanctions regulations may be punishable by civil penalties, including fines, denial of export privileges, injunctions, asset seizures, debarment from government contracts (and termination of existing contracts) and revocations or restrictions of licenses, as well as criminal fines and imprisonment. Any major violations could have a significant impact on its reputation and, consequently, on the Group’s ability to win future business.
In particular, the Group’s international operations and production activities could be subject to anti-corruption laws and regulations such as the U.S. Foreign Corrupt Practices Act of 1977 ("FCPA") and the United Kingdom Bribery Act of 2010 ("United Kingdom Bribery Act") and are also subject to any anti-corruption laws of any jurisdiction
26 applicable to it. The FCPA prohibits providing, offering, promising, or authorising, directly or indirectly, anything of value to government officials, political parties, or political candidates for the purposes of obtaining or retaining business or securing any improper business advantage. As part of its business, the Group deals with state-owned business enterprises, the employees of which may be considered government officials for purposes of the FCPA. The provisions of the United Kingdom Bribery Act extend beyond bribery of government officials and are broader than the FCPA in a number of other respects, including jurisdiction, non-exemption of facilitation payments and penalties. In particular, the United Kingdom Bribery Act (unlike the FCPA) does not require a corrupt or improper intent to be established in relation to the bribery of a public official and also applies to the active payment of bribes as well as the passive receiving of bribes. Furthermore, unlike the vicarious liability regime under the FCPA, whereby corporate entities can be liable for the acts of its employees, the United Kingdom Bribery Act introduced a new corporate offence directly applicable to corporate entities that fail to prevent bribery and did not establish and adopt adequate procedures to prevent bribery from occurring and, in certain circumstances, can render parties liable for the acts of their joint venture or commercial partners.
In addition, since March 2014, heightened tensions between Russia and Ukraine, in particular relating to the accession of Crimea to Russia, have resulted in the imposition of sanctions, asset freezes, travel limitations and certain other measures against specified Russian individuals as well as specified Russian companies by the United States, the European Union and certain other authorities. These sanctions include prohibitions on providing technology in support of exploration or production for deep-water, Arctic offshore or shale projects that have the potential to produce oil in the Russian Federation, encompassing the majority of Russian companies in the oil and gas industry.
While the Group has several joint venture partnerships in Russia, neither the Group nor its joint ventures have active operations in Russia in the particular areas of oil and gas exploration and production that are targeted by current sanctions regimes. However, if the United States or the European Union were to impose further sanctions which included its joint venture partners, this could, among other things, limit its access to certain types of technology in the oil and gas industry, its ability to acquire new assets and its ability to operate its existing assets, any of which could have a material adverse effect on its business, financial condition or results of operations.
The Group has policies and procedures designed to ensure its compliance with applicable laws and regulations and has trained its employees to comply with such laws and regulations and to consider the policies of and the compliance of its commercial partners when choosing entities with whom to enter into business arrangements. However, there can be no assurance that the Group’s policies and procedures will be followed at all times or effectively detect and prevent all violations of the applicable laws and every instance of fraud, bribery and corruption in every jurisdiction in which one or more of its employees, consultants, agents, commercial partners, contractors, sub-contractors or joint venture partners is located. As a result, the Group could be subject to penalties and reputational damage and material and adverse consequences on its business, prospects, financial condition or results of operations if the Group or other parties with whom the Group does business fail to prevent any such violations or are the subject of investigations into potential violations.
Please also refer to the risk factor "The Group is exposed to risks related to its midstream business" above for details on the risks relating to the Nord Stream 2 project.
The Group’s insurance coverage may not be sufficient
Oil and gas exploration, development, and production operations are subject to all the risks and hazards typically associated with such operations. The Group maintains a number of separate insurance policies to protect its core businesses against loss and liability to third-parties, including general liability, physical damage and operators’ extra expense (which includes the cost of regaining control of wells, re-drilling, seepage, pollution, clean-up and contamination). However, in accordance with industry practice and as a result of the Group’s assessment of its insurance programme profile from time to time, the Group is not fully insured against all potential risks. Furthermore, not all risks applicable to the Group’s business are insurable, or only insurable at a disproportionately high cost. Although the Group maintains liability insurance in an amount that the Group considers adequate and consistent with industry standard and the Group’s material assets located in North Africa, Russia and Ogarrio (Mexico) also benefit from investment guarantees provided by the Federal Republic of Germany, the nature of these risks is such that
27 liabilities could materially exceed policy limits or not be covered at all, in which event the Group could incur significant costs that could have adverse effect on its business. Any uninsured loss or liabilities, or any loss and liabilities exceeding the insured limits, may adversely affect its business, financial condition and results of operations.
The Group is subject to the risk of litigation
Oil and gas companies like the Group can be involved in various legal proceedings and disputes with landowners, royalty owners, authorities, joint venture partners or other operators over matters such as leases, title transfer, joint interest billing arrangements, revenue distribution, or production or cost sharing arrangements, as well as legal proceedings and disputes with customers and suppliers and in relation to construction and other activities at its assets, in the ordinary course of business. Damages claimed under such proceedings may be material or may be indeterminate, and the outcome of such litigation or arbitration could adversely affect the Group’s business. In addition, because the Group maintains a diversified portfolio of assets that includes global projects, the complexity and types of legal procedures with which the Group may become involved may vary, and the Group could incur significant legal and support expenses in different jurisdictions. While the Group assesses the merits of each claim and defends accordingly, the Group may be required to incur significant expenses and there can be no guarantee that a court or tribunal finds in its favour. Further, the adverse publicity surrounding such claims, particularly those relating to environmental matters, could materially and adversely affect the Group’s business, financial condition and results of operations. For further detail on material proceedings in which the Group is involved, please see "Description of the Guarantor and the Group – Legal and other proceedings".
The Group is subject to credit risks
The Group’s business is exposed to the risk that the amounts owed by its customers for products sold or services rendered will not be paid when due, and that some of them may not be able to perform timely and fully their obligations, for example, due to insolvency. In such cases, the Group seeks to resolve any disputes and recover amounts owed to it in conformity with the laws of the jurisdictions where the Group operates and with established business practices. The Group is also exposed to credit risk through its arrangements with suppliers, and its joint venture and other partners. As a result of the uncertainty regarding the amount and the date at which the Group will recover overdue debts from its customers, the Group may need substantial financial resources to maintain its financial stability.
The Group is also exposed to credit risk through its arrangements with suppliers and its joint venture and other partners. While the Group conducts thorough financial due diligence on all of its material counterparties, there can be no assurance that its business would not be adversely impacted if one of its customers, suppliers or joint venture partners experienced financial difficulty.
Changes in foreign exchange rates may affect the Group’s results of operations and financial position
The Group is exposed to market fluctuations in foreign exchange rates. Its reporting currency is the Euro. Revenues are based on several currencies including U.S. dollars, while operational costs and investment may be denominated in other currencies, including, for example, the Norwegian kroner and Russian rouble. The Group’s net foreign currency exposure (after natural hedges) is hedged actively with linear contracts where feasible to eliminate effects of currency fluctuations. Significant fluctuations in exchange rates between U.S. dollars, the Euro and its other operational currencies could materially and adversely affect its reported results.
The Group engages in limited trading and hedging activities that could expose it to losses
The nature of its operations results in exposure to fluctuations in commodity prices. The Group uses financial instruments and physical delivery contracts to hedge part of its exposure to these risks or otherwise optimise its business. If the Group engages in hedging, the Group will be exposed to credit related losses in the event of non- performance by counterparties to the associated financial instruments. Additionally, depending on the type of hedging instruments, it could limit its ability to receive the full benefit of commodity price increases and the Group may not be able to find pricing for hedging on suitable terms. The Group also engages in limited natural gas trading for optimisation of sales in its European markets. Any related trading risks are limited and monitored on a daily basis. If the Group enters into hedging or trading arrangements, the Group may suffer financial loss if the Group is unable to
28 commence operations on schedule or is unable to produce sufficient quantities of hydrocarbons to fulfil its obligations.
The Group may be unable to sell assets on attractive terms and may be required to retain liabilities for certain matters
The Group regularly reviews its asset base to assess the market value versus holding value of existing assets, with a view to optimising deployed capital. Its ability to consummate any future assets could be affected by various factors, including the availability of purchasers willing to purchase such assets at prices acceptable to it. In specific cases, the Group may retain certain liabilities or agree to indemnify buyers for certain matters and to divest certain assets or the Group may provide an indemnity to a buyer. The magnitude of any such retained liability or indemnification obligation may be difficult to quantify at the time of the transaction and ultimately may be material. Also, as is typical in divestiture transactions, third-parties may be unwilling to release the Group from guarantees or other credit support provided prior to the sale of the divested assets. As a result, after a sale, the Group may remain secondarily liable for the obligations guaranteed or supported to the extent that the buyer of the assets fails to perform these obligations.
The Group may incur material costs to comply with health and safety and environmental regulations
The Group operates in an industry that is inherently hazardous and consequently subject to comprehensive regulation. Failure to adequately mitigate risks relating to compliance with these regulations may result in loss of life, injury, or adverse impacts on health of employees, contractors and third-parties or the environment. Such failure, whether inadvertent or otherwise, by the Group to comply with applicable legal or regulatory requirements may give rise to significant liabilities and/or delays in permissions. A lack of compliance may even lead to denial of permissions that the Group requires for operating its sites. In addition, more stringent environmental laws and regulation may contradict existing license agreements which have been granted and could result in the loss or curtailment of its rights.
The terms of licenses or permissions may include more stringent environmental and/or health and safety requirements. The Group’s operations have the potential to impact soil, air and ground-water quality, biodiversity and ecosystems. Obtaining exploration, development or production licenses and permits may become more difficult or may be delayed due to government, regional or local environmental consultation, scientific studies, approvals or other considerations or requirements. Furthermore, third-parties such as environmental organizations may judicially contest licenses and permits already granted by relevant authorities.
The Group has incurred, and expects to continue to incur, substantial capital and operating costs in an effort to comply with increasingly complex health, safety and environmental laws and regulations. New laws and regulations, self- imposed obligations, the imposition of tougher requirements in licenses, increasingly strict enforcement, or new interpretations of, existing laws, regulations and licenses, or the discovery of previously unknown contamination may require further expenditures to, for example:
• modify operations;
• upgrade treatment plants;
• install pollution control equipment;
• perform site clean ups;
• curtail or cease certain operations; or
• pay fees or fines or make other payments for pollution, discharges or other breaches of environmental requirements.
The costs of the measures taken to comply with environmental regulations have been part of its established business practices and have not had a material adverse effect on the Group’s operations to date. However, in the future, the costs of such measures and liabilities related to potential environmental damage caused by the Group may increase, including, for example, due to legacy obligations relating to waste disposal sites, such as sludge pits. In addition, it is not possible to predict what future environmental regulations will be enacted or how current or future environmental regulations will be applied or enforced. The Group may have to incur significant expenditure for the
29 installation and operation of systems and equipment for remedial measures in the event that environmental regulations become more stringent or government authorities elect to enforce them more vigorously, or costly environmental reform is implemented by environmental regulators. Any such expenditure may have a material adverse effect on its business, financial condition and results of operations. No assurance can be given that environmental laws will not result in a curtailment of production or a material increase in the cost of production, development or exploration activities. For further detail, see "Description of the Guarantor and the Group – Climate and Environmental Protection".
The Group’s IT systems may be subject to intentional and unintentional disruption
The Group is dependent on its IT systems for the normal operation of its business. As part of the post-Merger integration process, as of the date of this Prospectus the Group is reliant on certain IT functions provided by BASF under transitional services agreements while the Group builds out its standalone IT infrastructure. Furthermore, the Group started as part of the integration process an ERP (Enterprise Resource Planning) transition in 2020 in order to transform the historical ERP landscape to one global harmonized future-proof standard. Any delay in the mentioned processes, due to unforeseen difficulties, resource constraint, potential failure to implement, cost increase or otherwise, could have an adverse impact on its business.
In addition, the Group could be a target of cyber-attacks designed to penetrate its network security or the security of its internal systems, misappropriate proprietary information, commit financial fraud and/or cause interruptions to its activities, including a reduction or halt in its production. Such attacks could include hackers obtaining access to the Group’s systems, the introduction of malicious computer code or denial of service attacks. If an actual or perceived breach of the Group’s network security occurs, it could adversely affect its business or reputation, and may expose it to the loss of information, litigation and possible liability. Such a security breach could also divert the efforts of its technical and management personnel. In addition, such a security breach could impair the Group’s ability to operate its business and provide products and services to its customers. If this happens, the Group’s reputation could be harmed, its revenues could decline, and its business could suffer.
In addition, confidential information that the Group maintains may be subject to misappropriation, theft and deliberate or unintentional misuse by current or former employees, third-party contractors or other parties who have had access to such information. Any such misappropriation and/or misuse of its information could result in the Group, among other things, being in breach of certain data protection and related legislation, which could have a material adverse effect on its business, financial condition and results of operations.
The Group may be subject to work stoppages or other labour disturbances
The Group employs local workers in many of the countries in which it does business. Additionally, the Group hires contractors who, in turn, have their own local employees. Although the Group believes that it has good relations with its employees and its contractor’s employees, strikes, work stoppages or other labour disturbances may occur. The majority of the Group’s employees, and those employed by its contractors, are represented by labour unions and councils and the Group or its contractors may not be able to negotiate acceptable collective bargaining agreements or future restructuring agreements or may become subject to material cost increases or additional work rules imposed by such agreements. As part of the post-Merger integration process, the Group is planning significant redundancies, particularly at its operations in Germany and Norway. While the Group is undertaking the redundancy process with the utmost care, there can be no assurance that it will not have an adverse impact on its relationship with employees in the affected business areas. The occurrence of any of the foregoing could adversely affect its business, financial condition and results of operations.
The Group may be adversely affected by changes to tax legislation or its interpretation
The Group does business in multiple jurisdictions and its profits are taxed according to the tax laws of such jurisdictions. Fluctuations in tax rates can have an impact on projects and make certain projects less economically viable. The Group’s tax rate, including its effective tax rate, may be affected by changes in tax laws or their interpretation, and in any given financial year will reflect a variety of factors that may not be present in succeeding financial years. As a result, the Group’s tax rate may increase in future periods, which could have a material adverse effect on its financial results.
30 Tax regimes in certain jurisdictions can be subject to differing interpretations and tax rules in any jurisdiction are subject to legislative change and changes in administrative and regulatory interpretation. For example, the Group’s Russian gas projects are joint ventures with Gazprom, which, since 2016, has been subject to an increased mineral extraction tax burden in Russia, which has been applied to certain of the Group’s joint ventures.
In certain circumstances, the interpretation by the Group’s relevant subsidiaries of applicable tax law as applied to their transactions and activities may not coincide with that of the relevant tax authorities. As a result, transactions may be challenged by tax authorities and any of its profits from activities in those jurisdictions may be subject to additional tax or additional unexpected transactional taxes (e.g. stamp duty or capital gains tax) may arise, which, in each case, could result in significant legal proceedings and additional taxes, penalties and interest, any of which could have a material adverse impact on the Group’s business, financial condition, project economics or results of operations.
While the current petroleum tax regime in Norway has been stable for the last 15 years, despite the significant oil price fluctuations during this period, there is no assurance that future political conditions in Norway will not result in the government adopting different policies for petroleum taxation. In the event there are changes to this tax regime, it could lead to new investments being less attractive and the amount of taxes the Group is required to pay could change. Any future tax reform in Norway may result in changes in the Norwegian tax system that may affect the Group’s current and future tax positions, net income after tax and financial condition.
The Group may fail to fully identify potential problems related to acquired reserves and resources or to properly estimate those reserves and resources
Although the Group performs a review of properties that it acquires that it believes is consistent with industry practices, such reviews are inherently incomplete. It generally is not feasible to review in-depth every individual property involved in each acquisition. However, even a detailed review of records and properties may not necessarily reveal existing or potential problems, nor will the Group’s permit it as a buyer to become sufficiently familiar with the properties to assess fully and accurately their deficiencies and potential. Inspections may not always be performed on every well, and environmental problems, such as groundwater contamination, are not necessarily observable even when an inspection is undertaken. Even when problems are identified, the Group often assumes certain environmental and other risks and liabilities in connection with acquired properties. There are numerous uncertainties inherent in estimating quantities of proved oil and gas reserves and resources and future production rate and costs with respect to acquired properties, and actual results may vary substantially from those assumed in the estimates. Accordingly, the oil and gas reserves and resources and production rates information set out in this Prospectus may not reflect actual oil and gas reserves and resources and production rates or be comparable to similar information reported by other companies. In addition, there can be no assurance that acquisitions will not have an adverse effect on its operating results, particularly during the periods in which the operations of acquired businesses are being integrated into its ongoing operations.
The Group’s strategy may expose it to risks
The Group is the leading independent European gas and oil company with full lifecycle capabilities across exploration, development and production activities complemented by investments in its midstream business. As part of its strategy, the Group may in the future seek additional opportunities to further expand its integrated portfolio and to possibly restructure or cease its existing operations where it is appropriate. The Group assesses each investment that it makes on the basis of financial, operational and market analysis, which may include certain assumptions.
Among the risks associated with this strategy, which could materially and adversely affect the Group’s business, results of operations or financial condition, are the following:
• the Group may incur substantial costs, delays or other operational or financial problems in integrating or restructuring acquired businesses, production sites and distribution networks;
• such acquisitions and restructuring processes may divert management’s attention from the operation of existing businesses;
31 • the Group may not be able to identify, acquire, profitably manage or successfully restructure such additional businesses;
• the Group may not be able to fully or effectively enforce its ownership rights or financial claims in the entities in which the Group invests;
• the Group may not realise the projected profits or anticipated benefits;
• the Group may encounter significant post-acquisition integration or restructuring issues relating to political or government interference and investigation, trade union interference and/or employment issues;
• the Group may not be able to retain key personnel of the newly acquired or recently restructured businesses; and
• the Group may encounter unanticipated events, circumstances or legal liabilities.
The Group’s ability to continue to grow and to penetrate new markets will depend on a number of factors. These include, among others, the availability of internal and external financing, the availability of suitable third-party business partners able to share risks and costs as well as existing and future competition. The Group might not be able to implement its growth strategy or successfully manage previous acquisitions and further its growth and this may have a material adverse effect on its business, results of operations or financial condition.
The Group’s production and development projects require substantial capital expenditures and its ability to generate sufficient cash flow to fund its operations depends on many factors beyond its control
The Group makes, and expects to continue to make, substantial capital expenditures in its business for the exploration, development, production and acquisition of oil and natural gas reserves and resources to offset declines in its key production assets. The Group incurs significant costs in conducting its exploration and development activities to establish the extent of oil and gas reserves and resources through seismic and other surveys and drilling, which can differ significantly from estimates, with no guarantee that such expenditure will result in the discovery of commercially deliverable resources and could lead to write-downs of reserves and resources. The Group has in the past and may, in the future, have to write down the value of its assets because production levels have not materialised as expected due to unexpected geological formations, delays in in project developments or other reasons. The Group’s assets also require substantial sustaining capital expenditure for continuous inspection, repairs, optimisation and maintenance. Some of its development projects have required and will require significant investments because of the complexity of the well construction technologies, the scale of the projects and/or the harsh environment conditions. However, the Group may be unable to finance its capital expenditures at a reasonable cost, including the capital requirements necessary to maintain its production and operations.
The Group’s ability to fund its working capital and capital expenditures and to make payments on, or repay or refinance, its debt, will depend on its future operating performance and ability to generate sufficient cash. This depends on the success of the Group’s business strategy and on general economic, financial, competitive, market, legislative, regulatory, technical and other factors, many of which are beyond the Group’s control. The Group cannot assure you that its business will generate sufficient cash flow from operations or that future internal and external financing will be available to it in an amount sufficient to enable it to pay its debt, including the Notes, or to fund its other liquidity needs.
The Group cannot assure you that it will be able to refinance or repay any of its debt at maturity, upon acceleration or early repayment, including the Notes, on commercially reasonable terms or at all. Any refinancing of the Group’s debt could be at higher interest rates than its current debt and may require it to comply with more onerous covenants, which could further restrict its business operations. If the Group is unable to make payments or refinance its debt or obtain new financing under these circumstances, the Group would have to consider other options, such as:
• selling assets;
• obtaining additional debt or equity capital;
• restructuring or refinancing all or a portion of its debt on or before maturity;
32 • foregoing opportunities such as acquisitions of other businesses; or
• reducing or delaying its business activities and capital investments.
The Group cannot assure you that it would be able to accomplish any of these alternatives on a timely basis or on commercially reasonable terms, if at all. Any failure to make payments on its debt, including the Notes, on a timely basis would likely result in a reduction of the Group’s credit rating, which could also restrict its ability to incur additional indebtedness. There can be no assurance that any assets that the Group may elect to sell can be sold or that, if sold, the timing of such sale and the amount of proceeds realised from such sale will be acceptable.
As a result of the Merger, certain historical financial information contained in this Prospectus is not comparable
The Merger took effect on 1 May 2019. Consequently, the audited consolidated financial statements of Wintershall as at and for the year ended 31 December 2018, the audited consolidated financial statements of Dea as at and for the year ended 31 December 2018 and the audited consolidated financial statements for the short fiscal year ended 30 April 2019 for each of Wintershall and Dea, incorporated by reference into this Prospectus, do not reflect the historical financial conditions and results of operations of the combined Group as created by the Merger.
In addition, this Prospectus presents certain Like-for-Like Financial Information for the financial years ended 31 December 2018 and 2019.
This Like-for-Like Financial Information is derived from the addition of the consolidated financial statements of Wintershall, the consolidated financial statements of Dea for the relevant periods and the consolidated financial statements of the Group, as applicable.
The Like-for-Like Financial Information for the financial years ended 31 December 2018 and 2019 accounts for the new reporting format adapted in preparation of the Merger, but only reflects to the effects of the purchase price allocation from 1 May 2019 onwards. Investors should note that the Like-for-Like Financial Information for the financial years ended 31 December 2018 and 2019 is therefore not reconcilable from the audited historical financial information of the relevant entities.
The Like-for-Like Financial Information is not intended to illustrate how the results or financial situation of the Group would have stood if the Merger had been effective as of 1 January 2018 or as of 1 January 2019. The Like- For-Like Financial Information therefore does not constitute pro-forma financial information. The Like-for-Like Financial Information is not indicative of the actual performance of the Group during any historical period or a projection of its operations or performance at any future date or for any future period.
The Like-for-Like Financial Information is not audited and has been prepared for information purposes only.
The actual historical financial condition and results of operations of the Group may not be consistent with, or evident from, certain financial information included in this Prospectus. Investors must exercise caution when using such data to evaluate the Group’s business, results of operations and financial condition.
The United Kingdom’s withdrawal from the European Union may impact the Group’s business
The United Kingdom’s withdrawal from the European Union pursuant to Article 50 of the Treaty on European Union following the national referendum in July 2016 ("Brexit"), has created fiscal uncertainty in the United Kingdom, as well as significant uncertainty about the future relationship between the United Kingdom, where the Group has operations, and the EU, where the Group is based. Possible negative outcomes resulting from Brexit include: significantly disrupted trade between the United Kingdom and Europe, including offtake arrangements for the offtake of gas produced at the Group’s Norwegian assets; political and economic instability in other countries of the EU and elsewhere in Europe; and instability in the global financial and foreign exchange markets including volatility in the value of the Euro and the pound sterling. It remains unclear what financial, trade and legal implications Brexit will have and whether, and to what extent the Group’s business, financial condition and results of operations may be affected.
33 Risks relating to the Notes
The Notes may not be a suitable investment for all investors
Potential investors should consider whether an investment in the Notes is appropriate in their respective circumstances and should consult with their legal, business, and tax advisors to determine the consequences of an investment in the Notes and to get their own idea about the investment.
An investment in the Notes is only suitable for investors who
• possess the required knowledge and experience in financial and business matters to evaluate the chances and risks of an investment in the Notes and the information contained or incorporated by reference into the Prospectus;
• have access to, and knowledge of, appropriate analytical tools to evaluate such chances and risks in the context of the potential investor's particular financial situation and to evaluate the impact the Notes will have on their overall investment portfolio;
• understand thoroughly the terms of the Notes and are familiar with the behaviour of the financial markets;
• are capable of bearing the economic risk of an investment in the Notes, including where the currency for principal or interest payments is different from the potential investor's currency;
• know that it may not be possible to dispose of the Notes for a substantial period of time, if at all; and
• are able to evaluate (either alone or with the help of a financial advisor) possible scenarios for economic, interest rate and other factors that may affect its investment and ability to bear the applicable risks.
The Notes are undated securities in which an investment constitutes a financial risk for an indefinite period
The Issuer is under no obligation to redeem the Notes. The Noteholders have no right to call for redemption of the Notes. Therefore, prospective investors should be aware that they may be required to bear the financial risks of an investment in the Notes for an indefinite period and may not recover their investment in the foreseeable future, if at all.
The Notes are subordinated to senior and subordinated obligations of the Issuer
The obligations of the Issuer under the Notes will be unsecured subordinated obligations of the Issuer which in an insolvency or liquidation of the Issuer rank pari passu among themselves and with certain other obligations of the Issuer, subordinated to all present and future unsubordinated and subordinated obligations of the Issuer and senior only to the Issuer's share capital and similar present or future instruments. According to the Terms and Conditions, in an insolvency or liquidation of the Issuer, no payments under the Notes will be made to the Noteholders unless the Issuer has discharged or secured in full (i.e. not only with a quota) all claims that rank senior to the Notes. In a liquidation, insolvency or any other proceeding for the avoidance of insolvency of the Issuer, the Noteholders may recover proportionately less than the holders of the notes of unsubordinated or subordinated obligations of the Issuer or may recover nothing at all. Potential investors should take into consideration that liabilities ranking senior to the Notes may also arise out of events that are not reflected on the Issuer’s balance sheet, including, without limitation, the issuance of guarantees or other payment undertakings. Claims of beneficiaries under such guarantees or other payment undertakings will, in liquidation or insolvency proceedings of the Issuer, become unsubordinated or subordinated liabilities and will therefore be paid in full before payments are made to the Noteholders. Claims under the Subordinated Guarantees are subordinated to senior and subordinated obligations of the Guarantor
The Guarantor's obligations under the Subordinated Guarantees are unsecured and rank subordinate to all present and future unsubordinated and subordinated obligations of the Guarantor, pari passu with present or future parity obligation of the Guarantor and senior only to the Guarantor’s share capital, the Guarantor’s preference shares and similar present or future instruments. This means that if the Guarantor fails to pay any liability that is senior to the Subordinated Guarantees, it may not make payments on the Subordinated Guarantees. Also, if the Guarantor is
34 bankrupt or liquidates or dissolves, the Guarantor or its trustee will use assets of the Guarantor to pay obligations on all liabilities ranking senior to the Subordinated Guarantees before making payments on the Subordinated Guarantees. Any parity obligations will share equally in payments with the Subordinated Guarantees if the Guarantor does not have sufficient funds to make full payments on all of them. There is no limitation on issuing further debt ranking senior to, or pari passu with, the Notes.
There is no restriction on the amount of debt which the Issuer and/or the Guarantor may issue ranking senior or equal to the obligations under or in connection with the Notes. Such issuance of further debt would reduce the amount recoverable by the Noteholders upon insolvency or liquidation of the Issuer and/or the Guarantor or may increase the likelihood that the Issuer is required or permitted to defer payments of interest under the Notes. The Noteholders will not be protected under the terms of the Notes in the event of a highly leveraged transaction, a reorganization or a restructuring, merger or similar transaction of the Issuer or the Guarantor that may adversely affect the Noteholders.
Interest payments under the Notes may be deferred at the option of the Issuer
Noteholders should be aware that interest may not be due and payable (fällig) on the scheduled Interest Payment Date, and that the payment of the resulting Deferred Interest Payments is subject to certain further conditions. Failure to pay interest as a result of an interest deferral will not constitute a default of the Issuer or a breach of any other obligations under the Notes or for any other purposes. The Noteholders will not receive any additional interest or compensation for the deferral of payment. In particular, the resulting Deferred Interest Payments will not bear interest. Any deferral of interest payments will likely have an adverse effect on the market price of the Notes. In addition, as a result of the interest deferral provision of the Notes, the market price of the Notes may be more volatile than the market prices of other debt securities on which interest accrues that are not subject to such deferrals and may be more sensitive generally to adverse changes in the Issuer’s or the Guarantor’s financial condition. The Issuer must pay outstanding Deferred Interest Payments (in whole but not in part) on the next Mandatory Settlement Date, subject to certain exemptions as further described in the Terms and Conditions, including, inter alia, the payment by the Guarantor of a cumulative advanced dividend (nachzahlbarer Vorausgewinnanteil) in respect of any preference company shares (Vorzugsgeschäftsanteile) or preference shares (Vorzugsaktien) (if existing at the relevant point of time) of the Guarantor prior to the date of a Qualified IPO, which will not trigger occurrence of a Compulsory Settlement Event. The Noteholders are exposed to risks relating to fixed interest rate notes
Until the respective First Reset Date of the Notes, each Series of Notes bears interest at a fixed rate for the initial fixed rate period. A Noteholder of a fixed interest rate Note carries the risk that the prices of the Notes can fall as a result of changes in the interest rate on the market. While the nominal interest rate of the Notes is fixed for the entire initial fixed rate period of the Notes and thereafter will be reset every five years to the reference rate plus the relevant margin specified in the relevant Terms and Conditions, the current interest rate on the capital market ("market interest rate") typically changes on a daily basis. As the market interest rate changes, the price of a Note with a fixed interest rate also changes – but in the opposite direction. If the market interest rate increases, the price of a Note with a fixed interest rate typically falls until the yield of such a Note approximately equals the market interest rate. If the market interest rate decreases, the price of a fixed interest rate Note typically increases, until the yield of such Note is approximately equal to the market interest rate. Noteholders should be aware that movements of the market interest rate can adversely affect the market price of the Notes and can lead to losses for Noteholders if they sell their Notes.
In addition, the credit spread of the Issuer, on which the initial fixed interest rate and the margins applicable with regard to the determination of the interest rate for each Reset Period was based, may change. A credit spread is the margin payable by the Issuer to the Noteholders as a premium for the assumed credit risk of the Issuer. 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 and rating of the Issuer, probability of default, recovery rate, remaining term to maturity of obligations under any collateralisation or guarantee and declarations as to any preferred payment or subordination. The liquidity situation, the general level of
35 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.
Noteholders are exposed to risks relating to the reset of interest rates linked to the 5-year Swap Rate
Starting with the end of the initial fixed interest rate period, each Series of Notes bears interest at a rate which will be determined on each respective reset date at the 5-year swap rate for the relevant reset period plus a margin. Investors should be aware that the performance of the 5-year swap rate and the interest income on the Notes cannot be anticipated. Due to varying interest income, investors are not able to determine a definite yield of the Notes at the time they purchase them, so that their return on investment cannot be compared with that of investments having longer fixed interest periods.
Investors in the Notes should bear in mind that neither the current nor the historical level of the 5-year swap rate is an indication of the future development of such 5-year swap rate. Furthermore, during each Reset Period, it cannot be ruled out that the price of the Notes may fall as a result of changes in the market interest rate, as the market interest rate fluctuates. During each of these periods, the investor is exposed to the risk as described under "The Noteholders are exposed to risks relating to fixed interest rate notes". Risks associated with the reform of interest rate benchmarks
Following the respective First Reset Date, interest amounts payable under each Series of Notes are calculated by reference to the annual swap rate for swap transactions denominated in Euro with a term of 5 years, which appears on the Reuters Screen Page ICESWAP2. This swap-rate, the underlying Euro Interbank Offered Rate ("EURIBOR") and other interest rates or other types of rates and indices which are deemed "benchmarks" (each a "Benchmark" and together, the "Benchmarks") have become the subject of regulatory scrutiny and recent national and international regulatory guidance and proposals for reform. Some of these reforms are already effective whilst others are still to be implemented. These reforms may cause such Benchmarks to perform differently than in the past, or to disappear entirely, or have other consequences which cannot be predicted. Any such consequence could have a material adverse effect on the Notes. International proposals for reform of Benchmarks include the European Council’s regulation (EU) 2016/1011 of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (the "Benchmark Regulation"). The Benchmark Regulation could have a material impact on the Notes, including in any of the following circumstances:
• a rate or index which is a Benchmark may only be used if its administrator obtains authorisation or is registered and in case of an administrator which is based in a non-EU jurisdiction, if the administrator’s legal benchmark system is considered equivalent (Article 30 Benchmark Regulation), the administrator is recognised (Article 32 Benchmark Regulation) or the relevant Benchmark is endorsed (Article 33 Benchmark Regulation) (subject to applicable transitional provisions). If this is not the case, Notes linked to such Benchmarks could be impacted; and
• the methodology or other terms of the Benchmark could be changed in order to comply with the terms of the Benchmark Regulation, and such changes could have the effect of reducing or increasing the rate or level or affecting the volatility of the published rate or level, and could have an impact on the Notes, including determination of the rate by the Issuer, the Calculation Agent or an independent adviser, as the case may be. In addition to the aforementioned Benchmark Regulation, there are numerous other proposals, initiatives and investigations which may impact Benchmarks.
36 Following the implementation of any such potential reforms, the manner of administration of Benchmarks may change, with the result that they may perform differently than in the past, or Benchmarks could be eliminated entirely, or there could be other consequences which cannot be predicted. Any changes to a Benchmark as a result of the Benchmark Regulation or other initiatives, could have a material adverse effect on the costs of administering or otherwise participating in the setting of a Benchmark and complying with any such regulations or requirements. Investors should be aware that any changes to a relevant Benchmark may have a material adverse effect on the value of the Notes. Under the terms and conditions of the Notes, certain benchmark replacement provisions will apply in case a Benchmark (or any component part thereof) used as a reference for the calculation of interest amounts payable under the Notes were to be discontinued or otherwise unavailable: If a Benchmark (or any component part thereof) used to calculate interest amounts payable under the Notes for any interest period has ceased to be calculated or administered, the Issuer shall endeavour to appoint an independent adviser, which must be an independent financial institution of international repute or other independent financial adviser experienced in the international debt capital markets. Such independent adviser will be tasked with determining whether an officially recognised successor rate to the discontinued Benchmark exists. If that is not the case, the independent adviser will attempt to find an alternative rate which, possibly after application of adjustments or spreads, can replace the discontinued Benchmark. If the independent adviser determines a successor rate or alternative rate (the "New Benchmark Rate"), such rate will replace the previous Benchmark for purposes of determining the relevant rate of interest. Such determination will be binding for the Issuer, the Calculation Agent, the Paying Agents and the Noteholders of such Series of Notes. Any amendments pursuant to these fall-back provisions will apply with effect from the respective effective date specified in the terms and conditions of the Notes. Such adjustments or spreads are intended to be applied in order to produce an industry-accepted replacement benchmark rate. However, the relevant adjustments or spreads may not be successful in doing so and the Notes may still perform differently than if the original Benchmark had continued to be used. If the Issuer fails to appoint an independent adviser or if the adviser fails to determine a New Benchmark Rate following a discontinuation of a relevant Benchmark, the reference rate applicable to the immediately following reset period shall be the original benchmark rate determined on the last preceding interest determination date, provided, however, that, in case of the first reset period, the reference rate shall be the original benchmark rate on the screen page on the last day preceding the interest determination date on which such original benchmark rate was displayed. The replacement of a Benchmark could have adverse effects on the economic return of the Noteholder of Notes compared to the applicable original benchmark rate. Noteholders are subject to the risk of a partial or total failure of the Issuer or the Guarantor to make interest and/or redemption payments
Any person who purchases the Notes is relying on the creditworthiness of the Issuer and the Guarantor and has no rights against any other person. Noteholders are subject to the risk of a partial or total failure of the Issuer or the Guarantor to make interest and/or redemption payments that the Issuer or the Guarantor is obliged to make under the Notes or the Subordinated Guarantees, respectively. The worse the creditworthiness of the Issuer or the Guarantor, the higher the risk of loss (see also "Risks relating to the Guarantor and the Group" above). A materialisation of the credit risk may result in partial or total failure of the Issuer or the Guarantor to make interest and/or redemption payments under the Notes or the Subordinated Guarantees, respectively. In addition, even if the likelihood that the Issuer or the Guarantor will be in a position to fully perform all obligations under the Notes or the Subordinated Guarantees, respectively, when they fall due actually has not decreased, market participants could nevertheless be of that opinion. Market participants may in particular be of such opinion if market participants’ assessment of the creditworthiness of corporate debtors in general or debtors operating in the industries sector adversely change. If any of these risks occur, third parties would only be willing to purchase the Notes for a lower price than before the materialisation of said risk. The market value of the Notes may therefore decrease.
37 The Noteholders have no voting rights and the Issuer's and Guarantor’s interests may not be aligned with those of investors in the Notes.
The Notes are non-voting with respect to general meetings of the Issuer or the Guarantor. Consequently, the Noteholders cannot influence any decisions by the Issuer to defer interest payments or to optionally settle such Deferred Interest Payments or any other decisions concerning the capital structure or any other matters relating to the Issuer or the Guarantor. The Issuer, the Guarantor and/or other entities of the Group will have no obligation to consider the interests of the Noteholders in connection with their strategic decisions, including in respect of capital management.
Such decisions could cause Noteholders to lose all or part of their investment in the Notes.
Noteholders may face difficulties in protecting their interests and enforcing their rights under the Subordinated Guarantees and the Notes
The Guarantor is incorporated in the Federal Republic of Germany, and the Issuer is incorporated in the Netherlands. Consequently, in the event of an insolvency, insolvency proceedings are likely to be initiated in German or Dutch courts and their relevant laws would then govern such proceedings. Insolvency laws in Germany and the Netherlands may differ materially from, and be less favourable than, equivalent procedures in other jurisdictions. This may affect the ability of Noteholders to recover in full if the Issuer or the Guarantor becomes bankrupt, insolvent or reorganises. The Noteholders have limited rights in German insolvency proceedings
In an insolvency over the assets of the Guarantor, claims against the Guarantor under the Subordinated Guarantees would be treated as deeply subordinated insolvency claims (nachrangige Insolvenzforderungen). According to section 174 paragraph 3 of the German Insolvency Code, deeply subordinated insolvency claims must not be registered with the insolvency court unless the insolvency court handling the case has granted special permission allowing these deeply subordinated insolvency claims to be filed which is not the rule, but the exception. The Noteholders would not participate in any creditors’ committee (Gläubigerausschuss) pursuant to the German Insolvency Code and would have very limited rights within the creditors’ assembly (Gläubigerversammlung) pursuant to the German Insolvency Code. They may be invited to participate in the creditors' assembly but would not be entitled to vote within such meetings (section 77 paragraph 1 of the German Insolvency Code). In case of insolvency plan proceedings (Insolvenzplanverfahren) the Noteholders generally would have no voting right on the adoption of an insolvency plan presented by the Guarantor, the relevant insolvency administrator or custodian (sections 237 and 246 of the German Insolvency Code). In addition, their claims would be waived after the adoption of the insolvency plan unless the insolvency plan makes an exception to this general rule (section 225 paragraph 1 German Insolvency Code). The Notes do not include express events of default or a cross default
The Noteholders should be aware that the Terms and Conditions of the Notes do not contain any express event of default provisions. There will also not be any cross default under the Notes.
The Notes do not contain any financial covenants
Neither the Guarantor nor any of its subsidiaries (including the Issuer) will be restricted from incurring additional unsecured debt or other liabilities, including debt ranking senior or equal to the obligations under or in connection with the Notes or the Subordinated Guarantees. If the Issuer or the Guarantor incurs additional debt or liabilities, the Issuer's and/or the Guarantor’s ability to pay their respective obligations under the Notes and the Subordinated Guarantees, respectively, could be adversely affected. Such issuance of further debt could further reduce the amount recoverable by the Noteholders upon insolvency or liquidation of the Issuer or the Guarantor or may increase the likelihood that the Issuer is required or permitted to defer payments of interest under the Notes. Noteholders will not be protected under the terms of the Notes in the event of a highly leveraged transaction, a reorganization or a restructuring, merger or similar transaction that may adversely affect Noteholders.
38 The Notes may be called and redeemed at the option of the Issuer on certain dates and at any time upon the occurrence of certain events. If the Notes are so redeemed, Noteholders are exposed to the risk of a lower yield than expected
The Issuer may redeem the NC2026 Notes during the period from and including 20 April 2026 to and including the NC2026 First Reset Date or on any Interest Payment Date of the NC2026 Notes thereafter. The Issuer may redeem the NC2029 Notes during the period from and including 20 July 2028 to and including the NC2029 First Reset Date or on any Interest Payment Date of the NC2029 Notes thereafter. The Issuer may call the NC2026 Notes for redemption (in whole but not in part) with effect as of any date prior to but excluding 20 April 2026 at their relevant Make-whole Amount. The Issuer may call the NC2029 Notes for redemption (in whole but not in part) with effect as of any date prior to but excluding 20 July 2028 at their relevant Make-whole Amount. The "Make-whole Amount" will be the higher of the Principal Amount of the relevant Series of Notes and their Present Value (as defined in the Terms and Conditions). The Issuer may further redeem all outstanding Notes of each Series at any time upon occurrence of a (i) Gross-up Event, (ii) a Tax Event, (iii) an Accounting Event or (iv) a Rating Agency Event or (v) in case of minimal outstanding aggregate principal amount (all as defined and further described in the Terms and Conditions). Noteholders are exposed to the risk that due to such redemption their investment will have a lower than expected yield. In such circumstances, the investor might not be able to reinvest the redemption proceeds in a comparable security at an effective interest rate as high as that of the Notes. Risk of change in market value
The market value of the Notes is influenced by a change in the creditworthiness (or the perception thereof) of the Guarantor and by the credit rating of the Guarantor and a number of other factors including, but not limited to, market interest and rate of return and certain market expectations with regard to the Issuer making use of a right to call the Notes for redemption. The value of the Notes depends on a number of interacting factors, including, but not limited to, economic and political events in Germany or elsewhere, factors affecting the capital markets in general and the stock exchanges on which the Notes are traded. The price at which a Noteholder can sell the Notes might be considerably below the issue price or the purchase price paid by such Noteholder. There is no active public trading market for the Notes
As of the date of this Prospectus there is no secondary market for the Notes. Application has been made to the Luxembourg Stock Exchange to list each Series of Notes on the Official List of the Luxembourg Stock Exchange and for admission to trading of the Notes on the Euro MTF Market operated by the Luxembourg Stock Exchange, which is a multilateral trading facility for the purposes of MiFID II, and, therefore, not an EU-regulated market. There can, however, be no assurance regarding the future development of a liquid secondary market for the Notes or the ability of Noteholders to sell their Notes or the price at which Noteholders may be able to sell their Notes. If such a market were to develop, the Notes could trade at prices that may be higher or lower than the initial offering price depending on many factors, including prevailing interest rates, the Guarantor’s operating results, the market for similar securities and other factors, including general economic conditions, performance and prospects, as well as recommendations of securities analysts. The liquidity of, and the trading market for, the Notes may also be adversely affected by declines in the market for debt securities generally. Such a decline may affect any liquidity and trading of the Notes independent of the Guarantor's financial performance and prospects. In an illiquid market, an investor might not be able to sell the Notes at any time at fair market prices. The possibility to sell the Notes might additionally be restricted by country specific reasons.
39 Risk of change in rating
Ratings assigned to the Guarantor by certain independent rating agencies are an indicator of the Guarantor’s ability to meet its obligations in a timely manner. The lower the assigned rating is on the respective scale the higher the respective rating agency assesses the risk that obligations will not be met at all or not be met in a timely manner. The market value of the Notes from time to time is likely to depend upon the level of credit rating assigned to the long- term debt of the Guarantor. Rating agencies may change, suspend or withdraw their ratings at short notice. A rating’s change, suspension or withdrawal may affect the price and the market value of the outstanding Notes. An investor may thus incur financial disadvantages as he may not be able to sell the Notes at a fair price. The Notes are expected to be assigned a credit rating by Moody’s Investor Services and by Fitch Ratings. The ratings may not reflect the potential impact of all risks related to the structure, market and additional factors discussed herein, and other factors that may affect the value of the Notes. In addition, Moody’s Investor Services, Fitch Ratings or any other rating agency may change its methodologies for rating securities with features similar to the Notes in the future. This may include the relationship between ratings assigned to an issuer’s senior securities and ratings assigned to securities with features similar to the Notes, sometimes called "notching". If the rating agencies were to change their practices for rating such securities in the future and the ratings of the Notes were to be subsequently lowered, this may have a negative impact on the trading price of the Notes. A credit rating is not a recommendation to buy, sell or hold securities and may be revised or withdrawn by the respective rating agency at any time. An investment in the Notes may be subject to the risk of inflation
The inflation risk is the risk of future money depreciation. The real yield from an investment is reduced by inflation. The higher the rate of inflation, the lower 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. There may be transaction costs and/or charges in connection with the purchase or sale of the Notes
When the 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 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, Noteholders may also be charged for the brokerage fees, commissions and other fees and expenses of such parties (third party costs). These incidental costs may significantly reduce or eliminate any profit from holding the Notes. The income under the Notes may be reduced by taxes
Potential purchasers and sellers of the Notes should be aware that they may be required to pay taxes or other documentary charges or duties in accordance with the laws and practices of the country where the Notes are transferred or other jurisdictions. In some jurisdictions, no official statements of the tax authorities or court decisions may be available for financial instruments such as the Notes. Potential investors are advised to ask for their own tax adviser’s advice on their individual taxation with respect to the acquisition, sale and redemption of the Notes. Only these advisors are in a position to duly consider the specific situation of the potential investor.
No obligation to pay additional amounts if Dutch interest withholding tax applies to payments made by the Issuer to an affiliated entity in respect of the Notes
On 27 December 2019, the Withholding Tax Act 2021 (Wet bronbelasting 2021) was published in the Dutch Official Gazette (Staatsblad 2019, 513). This legislation introduces a conditional withholding tax on interest and royalties as of 1 January 2021. The conditional withholding tax may apply on certain (deemed) payments of interest made to an affiliated (gelieerde) entity of the Issuer if such entity (i) is considered to be resident of a jurisdiction that is listed in the yearly updated Dutch Regulation on low-taxing states and non-cooperative jurisdictions for tax purposes (Regeling laagbelastende staten en niet-coöperatieve rechtsgebieden voor belastingdoeleinden), or (ii) has a permanent establishment located in such jurisdiction to which the interest is attributable, or (iii) is entitled to the interest payable for the main purpose or one of the main purposes to avoid taxation of another person, or (iv) is a hybrid entity, or (v) is not resident in any jurisdiction, all within the meaning of the Dutch Withholding Tax Act 2021. The conditional withholding tax rate is 25% in 2021.
40 In case payments made by the Issuer in respect of the Notes are subject to the conditional interest withholding tax, the Issuer will not be obliged to pay additional amounts as provided or referred to in the Terms and Conditions. Prospective investors in the Notes should consult their own tax advisers as to whether this interest withholding tax could be relevant to them. No assurance can be given as to the impact of any possible judicial decision or change of laws or administrative practices after the date of this Prospectus
The Terms and Conditions of the Notes are based on German 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 German law or administrative practice or the official application or interpretation of German law after the date of this Prospectus. The current IFRS accounting classification of financial instruments such as the Notes as equity instruments in the consolidated financial statements of the Guarantor may change which may result in the occurrence of an Accounting Event
In June 2018, the IASB (International Accounting Standards Board) published the discussion paper DP/2018/1 on "Financial Instruments with Characteristics of Equity" (the "DP/2018/1 Paper"). While the final timing and outcome are uncertain, if the proposals set out in the DP/2018/1 Paper are implemented in their current form, the IFRS equity classification of financial instruments such as the Notes in the consolidated financial statements of the Guarantor may change. If such a change leads to an Accounting Event (as defined in the Terms and Conditions), the Issuer will have the option to redeem, in whole but not in part, the Notes in accordance with the Terms and Conditions. The implementation of any of the proposals set out in the DP/2018/1 Paper or any other similar such proposals that may be made in the future, including the extent and timing of any such implementation, if at all, is uncertain. Accordingly, no assurance can be given as to the future classification of the Notes in the consolidated financial statements of the Guarantor from an accounting perspective or whether any such change may result in the occurrence of an Accounting Event. A potential investor may not rely on the Issuer, the Guarantor, the Joint Bookrunners or any of their respective affiliates in connection with its determination as to the legality of its acquisition of the Notes
Each potential investor in the Notes must determine, based on its own independent review and such professional advice as it deems appropriate under the circumstances, that its acquisition of the Notes is fully consistent with its (or if it is acquiring the Notes in a fiduciary capacity, the beneficiary’s) financial needs, objectives and conditions, complies and is fully consistent with all investment policies, guidelines and restrictions applicable to it (whether acquiring the Notes as principal or in a fiduciary capacity) and is a fit, proper and suitable investment for it (or if it is acquiring the Notes in a fiduciary capacity, for the beneficiary), notwithstanding the clear and substantial risks inherent in investing in or holding the Notes. A potential investor may not rely on the Issuer, the Guarantor, the Joint Bookrunners or any of their respective affiliates in connection with its determination as to the legality of its acquisition of the Notes or as to the other matters referred to above.
Without independent review and advice, an investor may not adequately understand the risks inherent with an investment in the Notes and may lose parts or all of its capital invested without taking such or other risks into consideration before investing in the Notes. Because the Global Notes are held by or on behalf of Euroclear and Clearstream, Luxembourg, investors will have to rely on their procedures for transfer, payment and communication with the Issuer.
Each Series of Notes will be represented by one or more Global Notes. Such Global Notes will be kept in custody by a common safekeeper on behalf of both Euroclear and Clearstream, Luxembourg. Investors will not be entitled to receive definitive notes. Euroclear and Clearstream, Luxembourg will maintain records of the beneficial interests in the Global Notes. While the Notes are represented by one or more Global Notes, investors will be able to trade their beneficial interests only through Euroclear and Clearstream, Luxembourg and the Issuer will discharge its payment obligations under the Notes by making payments to the common safekeeper for Euroclear and Clearstream, Luxembourg for distribution to their account holders. A holder of a beneficial interest in the Global Notes must rely
41 on the procedures of Euroclear and Clearstream, Luxembourg to receive payments under the Notes. The Issuer has no responsibility or liability for the records relating to, or payments made in respect of beneficial interests in, the Global Notes. Certain rights of the Noteholders under the Terms and Conditions may be amended or reduced or even cancelled by Noteholders’ resolutions and any such resolutions will be binding for all Noteholders of the respective Series of Notes. Any such resolution may effectively be passed with the consent of less than a majority of the aggregate principal amount of the respective Series of Notes outstanding
Since the Terms and Conditions of each Series of Notes provide for meetings of Noteholders of the respective Series of Notes or the taking of votes without a meeting, the Terms and Conditions of such Series of Notes may be amended by majority resolution of the Noteholders of such Series of Notes and a Noteholder is subject to the risk of being outvoted by a majority resolution of the Noteholders of the respective Series of Notes. The rules pertaining to resolutions of Noteholders are set out in the German Act on Debt Securities of 2009 (Schuldverschreibungsgesetz – "SchVG") and are for the most part mandatory. According to the SchVG the relevant majority for Noteholder resolutions is generally based on votes cast, rather than on the aggregate principal amount of the relevant Notes outstanding, therefore, any such resolution may effectively be passed with the consent of less than a majority of the aggregate principal amount of the respective Series of Notes outstanding. As such majority resolution is binding on all Noteholders of the respective Series of Notes, certain rights of such Noteholders against the Issuer under the Terms and Conditions of such Series of Notes may be amended or reduced or even cancelled. If a Noteholders’ representative is appointed for the respective Series of Notes the Noteholders of the respective Series of Notes may be deprived of their individual right to pursue and enforce their rights under the respective Terms and Conditions against the Issuer
Since the Terms and Conditions of each Series of Notes provide that the Noteholders of the respective Series of Notes are entitled to appoint a Noteholders’ Representative by a majority resolution of such Noteholders, it is possible that a Noteholder may be deprived of its individual right to pursue and enforce its rights under the Terms and Conditions of such Series of Notes against the Issuer, such right passing to the Noteholders’ Representative who is then exclusively responsible to claim and enforce the rights of all the Noteholders of the relevant Series of Notes. Exchange rate risks and exchange controls
The Notes are denominated in Euro. Potential investors should bear in mind that an investment in the Notes involves currency risks. This presents certain risks relating to currency conversions if a Noteholder’s financial activities are denominated principally in a currency or currency unit (the investor’s currency) other than Euro. These include the risk that exchange rates may change significantly (including changes due to devaluation of the Euro or revaluation of the investor’s currency) and the risk that authorities with jurisdiction over the investor’s currency may impose or modify exchange controls. An appreciation in the value of the investor’s currency relative to the Euro would decrease (i) the investor’s currency-equivalent yield on the Notes, (ii) the investor’s currency equivalent value of the principal payable on the Notes and (iii) the investor’s currency-equivalent market value of the Notes. In addition, government and monetary authorities may impose (as some have done in the past) exchange controls that could adversely affect an applicable currency exchange rate. As a result, Noteholders may receive less interest or principal than expected, or no interest or principal.
42 USE OF PROCEEDS
In connection with the issue of the Notes, the Issuer will receive net proceeds of approximately €1,491,750,000. The Issuer intends to use the net proceeds from the issuance of the Notes for the repayment of senior debt and general corporate purposes.
43 TERMS AND CONDITIONS OF THE NC2026 NOTES
ANLEIHEBEDINGUNGEN TERMS AND CONDITIONS
Diese Anleihebedingungen sind in deutscher These Terms and Conditions are written in the Sprache abgefasst und mit einer Übersetzung in German language and provided with an English die englische Sprache versehen. Der deutsche language translation. The German text will be Wortlaut ist allein rechtsverbindlich. Die the only legally binding version. The English englische Übersetzung dient nur zur language translation is provided for Information. convenience only.
§ 1 § 1 VERBRIEFUNG UND NENNBETRAG FORM AND DENOMINATION
(1) Währung, Nennbetrag. Diese Emission der (1) Currency, Denomination. This issue by Wintershall Dea Finance 2 B.V. (die "Emitten- Wintershall Dea Finance 2 B.V. (the "Issuer") tin") von garantierten nachrangigen Schuldver- of guaranteed subordinated undated bearer schreibungen ohne feste Laufzeit im Gesamt- notes in the aggregate principal amount of nennbetrag von Euro 650.000.000 (in Worten: Euro 650,000,000 (in words: Euro six-hundred Euro sechshundertfünfzig Millionen) ist and fifty million) is divided into notes payable eingeteilt in auf den Inhaber lautende Schuld- to bearer (the "Notes") in a denomination of verschreibungen (die "Schuldverschreibun- €100,000 per Note (the "Principal Amount"). gen") im Nennbetrag von €100.000 je Schuldverschreibung (der "Nennbetrag").
(2) Form. Die Schuldverschreibungen lauten auf (2) Form. The Notes are being issued in bearer den Inhaber. form.
(3) Globalurkunden und Austausch. (3) Global Notes and Exchange.
(a) Die Schuldverschreibungen sind anfänglich (a) The Notes are initially represented by a durch eine vorläufige Globalurkunde (die temporary global note (the "Temporary "vorläufige Globalurkunde") ohne Global Note") without coupons. The Zinsscheine verbrieft. Die vorläufige Temporary Global Note will be exchanged for Globalurkunde wird gegen Notes in the Principal Amount represented by a Schuldverschreibungen in ihrem Nennbetrag, permanent global note (the "Permanent Global die durch eine Dauerglobalurkunde (die Note") without coupons. The Temporary "Dauerglobalurkunde") ohne Zinsscheine Global Note and the Permanent Global Note verbrieft sind, ausgetauscht. Die vorläufige (each a "Global Note" and together the "Global Globalurkunde und die Dauerglobalurkunde Notes") will each be signed by or on behalf of (jeweils eine "Globalurkunde" und zusammen the Issuer and will each be authenticated by or die "Globalurkunden") werden jeweils von on behalf of the Principal Paying Agent. oder im Namen der Emittentin unterschrieben Definitive Notes and coupons will not be und werden von oder im Namen der issued. Hauptzahlstelle mit einer Kontrollunterschrift versehen. Einzelurkunden und Zinsscheine werden nicht ausgegeben.
(b) Die vorläufige Globalurkunde wird an einem (b) The Temporary Global Note will be exchanged Tag (der "Austauschtag") gegen die for the Permanent Global Note on a date (the Dauerglobalurkunde ausgetauscht, der nicht "Exchange Date") not later than 180 days after mehr als 180 Tage nach dem Tag der Ausgabe the date of issue of the Temporary Global Note.
44 der vorläufigen Globalurkunde liegt. Der The Exchange Date must not be earlier than 40 Austauschtag darf nicht weniger als 40 Tage days after the date of issue. Such exchange shall nach dem Tag der Begebung liegen. Ein solcher only be made upon delivery of certifications to Austausch soll nur nach Vorlage von the effect that the beneficial owner or owners of Bescheinigungen erfolgen, wonach der oder die the Notes represented by the Temporary Global wirtschaftlichen Eigentümer der durch die Note is/are not (a) U.S. person or persons (other vorläufige Globalurkunde verbrieften than certain financial institutions or certain Schuldverschreibungen keine US-Personen persons holding Notes through such financial sind (ausgenommen bestimmte Finanzinstitute institutions). Payments of interest on Notes oder bestimmte Personen, die represented by a Temporary Global Note will be Schuldverschreibungen über solche made only after delivery of such certifications. Finanzinstitute halten). Zinszahlungen auf A separate certification shall be required in durch eine vorläufige Globalurkunde verbriefte respect of each such payment of interest. Any Schuldverschreibungen erfolgen erst nach such certification received on or after the 40th Vorlage solcher Bescheinigungen. Eine day after the date of issue of the Temporary gesonderte Bescheinigung ist hinsichtlich einer Global Note will be treated as a request to jeden solchen Zinszahlung erforderlich. Jede exchange the Temporary Global Note pursuant Bescheinigung, die am oder nach dem 40. Tag to this § 1(3)(b). Any securities delivered in nach dem Tag der Ausgabe der vorläufigen exchange for the Temporary Global Note shall Globalurkunde eingeht, wird als ein Ersuchen be delivered only outside of the United States behandelt werden, diese vorläufige (as defined in § 8). Globalurkunde gemäß diesem § 1(3)(b) auszutauschen. Wertpapiere, die im Austausch für die vorläufige Globalurkunde geliefert werden, sind nur außerhalb der Vereinigten Staaten (wie in § 8 definiert) zu liefern.
(4) Clearingsystem. Jede die (4) Clearing System. Each Global Note Schuldverschreibungen verbriefende representing the Notes will be kept in custody Globalurkunde wird von dem oder im Namen by or on behalf of the Clearing System. des Clearingsystems verwahrt.
"Clearingsystem" bedeutet jeweils Folgendes: "Clearing System" means Clearstream Clearstream Banking S.A., Luxemburg Banking S.A., Luxembourg ("CBL") and ("CBL") Euroclear Bank SA/NV, Brüssel Euroclear Bank SA/NV, Brussels ("Euroclear") ("Euroclear") (CBL und Euroclear jeweils ein (CBL and Euroclear each an international internationaler Zentralverwahrer von central securities depositary ("ICSD" and Wertpapieren (international central securities together the "ICSDs")). depositary) ("ICSD" und zusammen die "ICSDs")).
Die Schuldverschreibungen werden in Form The Notes are issued in new global note einer New Global Note ("NGN") ausgegeben ("NGN") form and are kept in custody by a und von einem gemeinsamen common safekeeper on behalf of both ICSDs. Wertpapierverwahrer (common safekeeper) im Namen beider ICSDs verwahrt.
Der Gesamtnennbetrag der durch die The aggregate principal amount of Notes Globalurkunde verbrieften represented by the Global Note shall be the Schuldverschreibungen entspricht dem jeweils aggregate amount from time to time entered in in den Registern beider ICSDs eingetragenen the records of both ICSDs. The records of the Gesamtbetrag. Die Register der ICSDs (unter ICSDs (which expression means the records
45 denen man die Register versteht, die jeder ICSD that each ICSD holds for its customers which für seine Kunden über den Betrag ihres Anteils reflect the amount of such customers' interest in an den Schuldverschreibungen führt) sind the Notes) shall be conclusive evidence of the schlüssiger Nachweis über den aggregate principal amount of Notes Gesamtnennbetrag der durch die represented by the Global Note and, for these Globalurkunde verbrieften purposes, a statement issued by an ICSD stating Schuldverschreibungen, und eine zu diesen the principal amount of Notes so represented at Zwecken von einem ICSD jeweils ausgestellte any time shall be conclusive evidence of the Bestätigung mit dem Nennbetrag der so records of the relevant ICSD at that time. verbrieften Schuldverschreibungen ist ein schlüssiger Nachweis über den Inhalt des Registers des jeweiligen ICSD zu diesem Zeitpunkt.
Bei Rückzahlung oder einer Zinszahlung On any redemption or interest being made in bezüglich der durch die Globalurkunde respect of, or purchase and cancellation of, any verbrieften Schuldverschreibungen bzw. bei of the Notes represented by the Global Note the Kauf und Entwertung der durch die Issuer shall procure that details of such Globalurkunde verbrieften redemption, payment or purchase and Schuldverschreibungen stellt die Emittentin cancellation (as the case may be) in respect of sicher, dass die Einzelheiten über Rückzahlung, the Global Note shall be entered pro rata in the Zahlung bzw. Kauf und Entwertung bezüglich records of the ICSDs and, upon any such entry der Globalurkunde pro rata in die Register der being made, the aggregate principal amount of ICSDs eingetragen werden und dass nach dieser the Notes recorded in the records of the ICSDs Eintragung vom Gesamtnennbetrag der in die and represented by the Global Note shall be Register der ICSDs aufgenommenen und durch reduced by the aggregate principal amount of die Globalurkunde verbrieften the Notes so redeemed or purchased and Schuldverschreibungen der Gesamtnennbetrag cancelled. der zurückgezahlten bzw. gekauften und entwerteten Schuldverschreibungen abgezogen wird.
Bei Austausch eines Anteils von ausschließlich On an exchange of a portion only of the Notes durch eine vorläufige Globalurkunde represented by a Temporary Global Note, the verbrieften Schuldverschreibungen wird die Issuer shall procure that details of such Emittentin sicherstellen, dass die Einzelheiten exchange shall be entered pro rata in the dieses Austauschs pro rata in die records of the ICSDs. Aufzeichnungen der ICSDs aufgenommen werden.
(5) Übertragbarkeit. Den Anleihegläubigern (5) Transferability. The Noteholders are entitled to stehen Miteigentumsanteile bzw. Rechte an der proportional co-ownership interests or rights in Globalurkunde zu, die nach Maßgabe des the Global Note, which are transferable in anwendbaren Rechts und der Regeln und accordance with applicable law and the rules Bestimmungen des Clearingsystems übertragen and regulations of the Clearing System. werden können.
(6) Anleihegläubiger. "Anleihegläubiger" be- (6) Noteholder. "Noteholder" means any holder of zeichnet jeden Inhaber eines a proportionate co-ownership interest or other Miteigentumsanteils oder vergleichbaren comparable beneficial interest or right in the anderen Rechts an der Globalurkunde. Global Note.
46 § 2 § 2 STATUS, GARANTIE STATUS, GUARANTEE
(1) Status der Schuldverschreibungen. Die Ver- (1) Status of the Notes. The obligations of the bindlichkeiten der Emittentin aus den Schuld- Issuer under the Notes constitute (subject to verschreibungen begründen (vorbehaltlich § 2(2)) unsecured and subordinated obligations § 2(2)) nicht besicherte und nachrangige of the Issuer ranking Verbindlichkeiten der Emittentin, die
(a) nachrangig gegenüber allen (a) subordinated to all present and future gegenwärtigen und zukünftigen nicht unsubordinated and subordinated nachrangigen und nachrangigen obligations of the Issuer which do not Verbindlichkeiten der Emittentin, die fall under § 2(1)(b) or (c), nicht unter § 2(1)(b) oder (c) fallen, sind,
(b) untereinander und mit allen anderen (b) pari passu amongst themselves and pari gegenwärtigen und zukünftigen nicht passu with all other present and future besicherten Verbindlichkeiten der unsecured obligations of the Issuer Emittentin, die nachrangig gegenüber ranking subordinated to all allen nicht nachrangigen und unsubordinated and subordinated nachrangigen Verbindlichkeiten der obligations of the Issuer (including any Emittentin sind (einschließlich Parity Security of the Issuer), except for Gleichrangiger Wertpapiere der any subordinated obligations required to Emittentin), gleichrangig sind, soweit be preferred by mandatory provisions of nicht zwingende gesetzliche law; and Bestimmungen solche anderen nachrangigen Verbindlichkeiten im Rang besserstellen; und
(c) im Rang nur den Ansprüchen und (c) senior only to the rights and claims of Rechten von Inhabern von holders of Junior Securities of the Issuer. Nachrangigen Wertpapieren der Emittentin vorgehen.
Im Fall der Auflösung, der Liquidation, der In the event of the dissolution, liquidation, Insolvenz oder eines der Abwendung der insolvency or any proceeding to avoid Insolvenz der Emittentin dienenden Verfahrens insolvency of the Issuer, the obligations of the stehen die Verbindlichkeiten der Emittentin aus Issuer under the Notes will be subordinated to den Schuldverschreibungen allen nicht all unsubordinated and all subordinated nachrangigen und allen nachrangigen obligations of the Issuer which do not fall under Verbindlichkeiten der Emittentin, die nicht § 2(1)(b) or (c) above so that in any such event unter § 2(1)(b) oder (c) fallen, im Rang nach, so payments will not be made under the Notes until dass Zahlungen auf die Schuldverschreibungen all claims against the Issuer which pursuant to erst erfolgen, wenn alle Ansprüche gegen die this § 2 are expressed to, or by operation of law, Emittentin aus Verbindlichkeiten, die den rank senior to the obligations of the Issuer under Verbindlichkeiten der Emittentin aus den the Notes have been satisfied in full; only after Schuldverschreibungen nach Maßgabe dieses all of the aforementioned claims and obligations § 2 oder kraft Gesetzes im Rang vorgehen, under the Notes have been satisfied any vollständig befriedigt sind; erst nach remaining assets may be distributed to the Befriedigung aller der vorgenannten Ansprüche holders of Junior Securities of the Issuer. und der Verbindlichkeiten aus den Schuldver- schreibungen können die verbleibenden
47 Vermögenswerte an die Inhaber Nachrangiger Wertpapiere der Emittentin verteilt werden.
"Gleichrangiges Wertpapier der Emittentin" "Parity Security of the Issuer" means any bezeichnet jedes gegenwärtige oder zukünftige present or future security or other instrument Wertpapier oder jedes andere Instrument, das which ranks or is expressed to rank pari passu gleichrangig mit den Schuldverschreibungen ist with the Notes. oder als im Verhältnis zu den Schuldverschrei- bungen gleichrangig vereinbart ist.
"Nachrangiges Wertpapier der Emittentin" "Junior Security of the Issuer" means (i) the bezeichnet (i) die Anteile am Kapital der shares (aandelen) in the capital of the Issuer and Emittentin und (ii) jedes andere gegenwärtige (ii) any other present or future security or other oder zukünftige Wertpapier oder jedes andere instrument of the Issuer under which the Issuer's Instrument, das von der Emittentin begeben ist obligations rank or are expressed to rank pari und bei dem die daraus folgenden passu with the shares in the capital of the Issuer. Verbindlichkeiten der Emittentin mit den Anteilen am Kapital der Emittentin gleichrangig oder als gleichrangig vereinbart sind.
(2) Garantie. Die Schuldverschreibungen werden (2) Guarantee. The Notes will be unconditionally unbedingt und unwiderruflich durch die and irrevocably guaranteed by Wintershall Dea Wintershall Dea GmbH (die "Garantin") auf GmbH (the "Guarantor") on a subordinated nachrangiger Basis garantiert (die "Garantie"). basis (the "Guarantee").
Die Verbindlichkeiten der Garantin aus den The obligations of the Guarantor under the Schuldverschreibungen begründen nicht Notes constitute unsecured obligations of the besicherte Verbindlichkeiten der Garantin, die Guarantor ranking
(a) nachrangig gegenüber allen (a) subordinated to all present and future gegenwärtigen und zukünftigen nicht unsubordinated and subordinated nachrangigen und nachrangigen obligations of the Guarantor which do Verbindlichkeiten der Garantin die nicht not fall under § 2(2)(b) or (c), unter § 2(2)(b) oder (c) fallen, sind,
(b) untereinander und mit allen anderen (b) pari passu among themselves and pari gegenwärtigen und zukünftigen nicht passu with all other present and future besicherten Verbindlichkeiten der unsecured obligations of the Guarantor Garantin, die nachrangig gegenüber ranking subordinated to all allen nicht nachrangigen und unsubordinated and subordinated nachrangigen Verbindlichkeiten der obligations of the Guarantor (including Garantin sind (einschließlich der any Parity Securities of the Guarantor), Gleichrangigen Wertpapiere der except for any subordinated obligations Garantin), gleichrangig sind, soweit required to be preferred by mandatory nicht zwingende gesetzliche provisions of law; and Bestimmungen solche anderen nachrangigen Verbindlichkeiten im Rang besserstellen; und
(c) im Rang nur den Ansprüchen und (c) senior only to the rights and claims of Rechten von Inhabern Nachrangiger holders of Junior Securities of the Wertpapiere der Garantin vorgehen. Guarantor.
48 Im Fall der Auflösung, der Liquidation, In the event of the dissolution, der Insolvenz oder eines der Abwendung liquidation, insolvency or any der Insolvenz der Garantin dienenden proceeding to avoid insolvency of the Verfahrens stehen die Verbindlichkeiten Guarantor, the obligations of the der Garantin aus den Schuldverschrei- Guarantor under the Notes will be bungen allen nicht nachrangigen und subordinated to all unsubordinated and allen nachrangigen Verbindlichkeiten all subordinated obligations of the der Garantin, die nicht unter § 2(2)(b) Guarantor which do not fall under oder (c) fallen, im Rang nach, so dass § 2(2)(b) or (c) so that in any such event Zahlungen auf die Garantie erst payments will not be made under the erfolgen, wenn alle Ansprüche gegen die Guarantee until all claims against the Garantin aus Verbindlichkeiten, die den Guarantor which pursuant to this § 2 are Verbindlichkeiten der Garantin aus der expressed to, or by operation of law, Garantie nach Maßgabe dieses § 2 oder rank senior to the obligations of the kraft Gesetzes im Rang vorgehen, Guarantor under the Guarantee have vollständig befriedigt sind; erst nach been satisfied in full; only after all of the Befriedigung aller der vorgenannten aforementioned claims and obligations Ansprüche und der Verbindlichkeiten under the Guarantee have been satisfied aus der Garantie können die any remaining assets may be distributed verbleibenden Vermögenswerte an die to the holders of Junior Securities of the Inhaber Nachrangiger Wertpapiere der Guarantor. Garantin verteilt werden.
"Gleichrangiges Wertpapier der Garantin" "Parity Security of the Guarantor" means any bezeichnet jedes gegenwärtige oder zukünftige present or future security, registered security or Wertpapier, Namenswertpapier oder jedes other instrument which (i) is issued by the andere Instrument, das (i) von der Garantin Guarantor and ranks or is expressed to rank pari begeben ist und gleichrangig mit den passu with the obligations of the Guarantor Verbindlichkeiten der Garantin aus der Garantie under the Guarantee, or (ii) is issued by a ist oder als im Verhältnis zu den Subsidiary of the Guarantor and guaranteed by Verbindlichkeiten der Garantin aus der Garantie the Guarantor or for which the Guarantor has gleichrangig vereinbart ist, oder (ii) von einer otherwise assumed liability where the Tochtergesellschaft der Garantin begeben und Guarantor's obligations under the relevant von der Garantin dergestalt garantiert ist oder guarantee or other assumption of liability rank für das die Garantin dergestalt die Haftung pari passu with the Guarantor's obligations übernommen hat, dass die Verpflichtungen der under the Guarantee. Garantin aus der maßgeblichen Garantie oder Haftungsübernahme im Verhältnis zu den Verbindlichkeiten der Garantin aus der Garantie gleichrangig sind.
"Nachrangiges Wertpapier der Garantin" "Junior Security of the Guarantor" means bezeichnet (i) die Stammgeschäftsanteile oder (i) the ordinary company shares Stammaktien (soweit zum relevanten Zeitpunkt (Stammgeschäftsanteile) or ordinary shares einschlägig) der Garantin, (ii) jeden (Stammaktien) (if existing at the relevant point Geschäftsanteil einer anderen Gattung von of time) of the Guarantor, (ii) any company Geschäftsanteilen der Garantin bzw. jede Aktie share or share of any other class of company einer anderen Gattung von Aktien der Garantin, shares or shares of the Guarantor, including any einschließlich Vorzugsgeschäftsanteile oder preference company shares Vorzugsaktien (soweit zum relevanten (Vorzugsgeschäftsanteile) or preference shares Zeitpunkt einschlägig) der Garantin, (iii) jedes (Vorzugsaktien) (if existing at the relevant point andere gegenwärtige oder zukünftige of time) of the Guarantor, (iii) any other present Wertpapier, Namenswertpapier oder jedes or future security, registered security or other
49 andere Instrument, das von der Garantin instrument of the Guarantor under which the begeben ist und bei dem die daraus folgenden Guarantor's obligations rank or are expressed to Verbindlichkeiten der Garantin mit den unter (i) rank pari passu with the instruments of the und (ii) beschriebenen Instrumenten der Guarantor described under (i) and (ii), and Garantin gleichrangig oder als gleichrangig (iv) any present or future security, registered vereinbart sind, und (iv) jedes gegenwärtige security or other instrument which is issued by oder zukünftige Wertpapier, Namenswertpapier a Subsidiary of the Guarantor and guaranteed by oder jedes andere Instrument, das von einer the Guarantor or for which the Guarantor has Tochtergesellschaft der Garantin begeben ist, otherwise assumed liability where the und das von der Garantin dergestalt garantiert Guarantor's obligations under such guarantee or ist oder für das die Garantin dergestalt die other assumption of liability rank or are Haftung übernommen hat, dass die betreffenden expressed to rank pari passu with the Verbindlichkeiten der Garantin aus der instruments of the Guarantor described under maßgeblichen Garantie oder (i), (ii) and (iii). Haftungsübernahme mit den unter (i), (ii) und (iii) beschriebenen Instrumenten der Garantin gleichrangig oder als gleichrangig vereinbart sind.
"Tochtergesellschaft" bezeichnet jede "Subsidiary" means an entity in which the Gesellschaft, an der die Garantin direkt oder Guarantor holds directly or indirectly a majority indirekt mehrheitlich beteiligt ist und die von interest and which is controlled by the der Garantin im Sinne von IFRS beherrscht Guarantor within the meaning of IFRS. wird.
(3) Aufrechnungsverbot. Die Anleihegläubiger (3) Prohibition of Set-off. The Noteholders may sind nicht berechtigt, Forderungen aus den not set off any claim arising under the Notes or Schuldverschreibungen bzw. der Garantie the Guarantee against any claim that the Issuer gegen etwaige Forderungen der Emittentin oder or the Guarantor may have against any of them. der Garantin gegen sie aufzurechnen. Die The Issuer may not set off any claims it may Emittentin ist nicht berechtigt, etwaige have against any Noteholder against any claims Forderungen, welche sie gegen einen of such Noteholder under the Notes. The Anleihegläubiger hat, gegen Forderungen Guarantor may not set off any claims it may dieses Anleihegläubigers aus den Schuldver- have against any Noteholder against any claims schreibungen aufzurechnen. Die Garantin ist of such Noteholder under the Guarantee. nicht berechtigt, etwaige Forderungen, welche sie gegen einen Anleihegläubiger hat, gegen Forderungen dieses Anleihegläubigers aus der Garantie aufzurechnen.
(4) Tilgung aus sonstigem freien Vermögen. Unter (4) Payment from other distributable as- Beachtung von § 2(1) und § 2(2) bleibt es der sets. Subject to § 2(1) and § 2(2), the Guarantor Garantin unbenommen, ihre Verbindlichkeiten may satisfy its obligations in respect of the im Hinblick auf die Schuldverschreibungen Notes and the Guarantee also from their other bzw. die Garantie auch aus ihrem sonstigen distributable assets (sonstiges freies freien Vermögen zu bedienen. Vermögen).
§ 3 § 3 ZINSEN INTEREST
(1) Zinslauf. In dem Zeitraum ab dem 20. Januar (1) Interest accrual. In the period from and inclu- 2021 (der "Zinslaufbeginn") (einschließlich) ding 20 January 2021 (the "Interest bis zum Zinslaufende gemäß § 3(3) wird jede Commencement Date") to the cessation of
50 Schuldverschreibung bezogen auf ihren interest accrual in accordance with § 3(3) each Nennbetrag in Höhe des Zinssatzes (wie Note bears interest on its Principal Amount at nachstehend definiert) verzinst. the Rate of Interest (as defined below).
Zinsen sind jährlich nachträglich am 20. Juli Interest is scheduled to be paid annually in eines jeden Jahres zur Zahlung vorgesehen, arrear on 20 July of each year, commencing on erstmals am 20. Juli 2021 (kurze erste 20 July 2021 (short first coupon) (subject to Zinsperiode), vorbehaltlich einer Rückzahlung redemption or repurchase and cancellation) oder eines Rückkaufs und anschließender (each an "Interest Payment Date"), and will be Entwertung (jeweils ein "Zinszahlungstag"), due and payable (fällig) in accordance with the und werden nach Maßgabe der in § 4(1) conditions set out in § 4(1). dargelegten Bedingungen fällig.
(2) Verzinsung. (2) Interest.
(a) Der "Zinssatz" entspricht (a) The "Rate of Interest" will be
(i) ab dem Zinslaufbeginn (i) from and including the Interest (einschließlich) bis zum 20. Juli Commencement Date to but 2026 (der "Erste Zinsanpas- excluding 20 July 2026 (the sungstag") (ausschließlich) "First Reset Date") a rate of einem Zinssatz in Höhe von 2.4985 per cent. per annum; jährlich 2,4985 %;
(ii) ab dem Ersten Zinsanpassungs- (ii) from and including the First tag (einschließlich) bis zum Reset Date to but excluding 20. Juli 2031 (der "Zweite Zins- 20 July 2031 (the "Second Reset anpassungstag") Date") the First Reset Interest (ausschließlich) dem Ersten Rate for such Reset Period; and Reset-Zinssatz für diesen Zinsan- passungszeitraum; und
(iii) ab dem Zweiten Zinsanpassungs- (iii) from and including the Second tag (einschließlich) dem Reset Date the Modified Reset Modifizierten Reset-Zinssatz für Interest Rate for the relevant den betreffenden Zinsanpas- Reset Period. sungszeitraum.
(b) Der "Erste Reset-Zinssatz" ist der (b) The "First Reset Interest Rate" will be Referenzsatz für den betreffenden Zins- the Reference Rate for the relevant Reset anpassungszeitraum zuzüglich 292,4 1 Period plus 292.4 2 basis points per Basispunkte per annum, wie von der Be- annum, as determined by the Calculation rechnungsstelle festgelegt. Agent.
(c) Der "Modifizierte Reset-Zinssatz" ist (c) The "Modified Reset Interest Rate" der Referenzsatz für den betreffenden will be the Reference Rate for the Zinsanpassungszeitraum zuzüglich relevant Reset Period plus 392.4 4 basis
1 Dies entspricht der ursprünglichen Kreditmarge im Zeitpunkt der Preisfindung. 2 This equals the initial credit spread at the time of pricing. 4 This equals the initial credit spread at the time of pricing plus 100 bps.
51 392,4 3 Basispunkte per annum, wie von points per annum, as determined by the der Berechnungsstelle festgelegt. Calculation Agent.
(d) Die Berechnungsstelle wird den (d) The Calculation Agent will, on the anwendbaren Ersten Reset-Zinssatz und relevant Interest Determination Date, den Modifizierten Reset-Zinssatz für die determine the First Reset Interest Rate Schuldverschreibungen an dem and the Modified Reset Interest Rate, as betreffenden Zinsfeststellungstag applicable, and cause the same to be bestimmen und veranlassen, dass dieser notified to the Issuer, the Guarantor, the der Emittentin, der Garantin, der Principal Paying Agent and, if required Hauptzahlstelle und jeder Börse, an der by the rules of any stock exchange on die Schuldverschreibungen zu diesem which the Notes are then listed, to such Zeitpunkt notiert sind und deren Regeln stock exchange, and to the Noteholders eine Mitteilung an die Börse verlangen, in accordance with § 13 without undue sowie den Anleihegläubigern gemäß delay, but, in any case, not later than on § 13 unverzüglich, aber keinesfalls the eighth Business Day after its später als am achten auf dessen determination. Bestimmung folgenden Geschäftstag mitgeteilt wird.
"Geschäftstag" bezeichnet jeden Tag "Business Day" means any day (other (außer einem Samstag oder Sonntag), an than Saturday or Sunday) on which the dem das Trans-European Automated Trans-European Automated Real-time Real-time Gross settlement Express Gross settlement Express Transfer Transfer system 2 (TARGET2) geöffnet system 2 (TARGET2) is open and the ist und das Clearing-System Zahlungen Clearing System settles payments in in Euro abwickelt. Euro.
(e) Wenn ein Kontrollwechsel-Ereignis (e) If a Change of Control Event (as defined (wie in § 6(5)(c) definiert) eintritt und in § 6(5)(c)) occurs and the Issuer does die Emittentin die Schuldverschreibun- not redeem the Notes in whole in gen nicht insgesamt gemäß § 6(5)(b) an accordance with § 6(5)(b) on the Change dem Kontrollwechsel-Stichtag (wie in of Control Effective Date (as defined in § 6(5)(c) definiert) zurückzahlt, erhöht § 6(5)(c)), the applicable Rate of Interest sich der für die Berechnung der Zinsen will be subject to an additional 500 basis ansonsten anwendbare Zinssatz ab dem points per annum above the otherwise Kontrollwechsel-Stichtag um applicable prevailing Rate of Interest zusätzliche 500 Basispunkte per annum. from the Change of Control Effective Für den Fall, dass in dem Zeitraum Date, provided however that, in case zwischen dem Eintritt des ersten more than one Change of Control Event Kontrollwechsel-Ereignisses und dem has occurred in the period from the Tag, an dem die Kontrollwechsel- occurrence of the first Change of Control Mitteilung (wie in § 6(5)(a) definiert) in Event to and including the day on which Bezug auf diesen ersten Kontrollwechsel the Change of Control Notice (as defined veröffentlicht wird, mehr als ein in § 6(5)(a)) with regard to such first Kontrollwechsel-Ereignis eintritt, erhöht Change of Control Event is published, sich der für die Berechnung der Zinsen the otherwise applicable Rate of Interest ansonsten anzuwendende Zinssatz will only be increased once. jedoch nur einmal.
3 Dies entspricht der ursprünglichen Kreditmarge im Zeitpunkt der Preisfindung plus 100 Basispunkte.
52 (f) Die Zinsen für einen beliebigen (f) Interest for any period of time will be Zeitraum werden auf der Grundlage des calculated on the basis of the Day Count Zinstagequotienten berechnet. Fraction.
"Zinstagequotient" bezeichnet bei der "Day Count Fraction" means, in Berechnung des Zinsbetrages für eine respect of the calculation of an amount Schuldverschreibung für einen of interest on any Note for any period of beliebigen Zeitraum (ab dem ersten Tag time (from and including the first day of dieses Zeitraums (einschließlich) bis such period to but excluding the last day zum letzten Tag dieses Zeitraums of such period) (the "Calculation (ausschließlich)) (der Period"): "Zinsberechnungszeitraum"):
(i) wenn der (i) if the Calculation Period is equal Zinsberechnungszeitraum der to or shorter than the Feststellungsperiode entspricht, Determination Period in which it in die er fällt, oder kürzer als falls, the number of days in the diese ist, die Anzahl von Tagen in Calculation Period divided by the dem Zinsberechnungszeitraum number of days in such dividiert durch die Anzahl von Determination Period; and Tagen in der betreffenden Feststellungsperiode; und
(ii) wenn der (ii) if the Calculation Period is longer Zinsberechnungszeitraum länger than one Determination Period, als eine Feststellungsperiode ist, the sum of: die Summe aus
(A) der Anzahl der Tage in (A) the number of days in dem betreffenden such Calculation Period Zinsberechnungs- falling in the zeitraum, die in die Determination Period in Feststellungsperiode which the Calculation fallen, in der der Period begins divided by Zinsberechnungszeitraum the number of days in beginnt, dividiert durch such Determination die Anzahl der Tage in der Period; and betreffenden Feststellungsperiode; und
(B) die Anzahl der Tage in (B) the number of days in dem betreffenden such Calculation Period Zinsberech- falling in the next nungszeitraum, die in die Determination Period nachfolgende divided by the number of Feststellungsperiode days in such fallen, dividiert durch die Determination Period. Anzahl der Tage in der betreffenden Feststellungsperiode.
53 Dabei gilt Folgendes: Where:
"Feststellungsperiode" bezeichnet jede "Determination Period" means each Periode ab einem Feststellungstermin period from and including a (einschließlich), der in ein beliebiges Determination Date in any year to but Jahr fällt, bis zum nächsten excluding the next Determination Date. Feststellungstermin (ausschließlich).
"Feststellungstermin" bezeichnet jeden "Determination Date" means each 20. Juli. 20 July.
(3) Zinslaufende. Die Verzinsung der Schuldver- (3) Cessation of interest accrual. The Notes will schreibungen endet mit Beginn des Tages, an cease to bear interest from the beginning of the dem ihr Nennbetrag zur Rückzahlung fällig day their Principal Amount is due for wird. Sollte die Emittentin eine Zahlung von repayment. If the Issuer fails to make any Kapital auf die Schuldverschreibungen bei payment of principal under the Notes when due, Fälligkeit nicht leisten, endet die Verzinsung the Notes will cease to bear interest from the der Schuldverschreibungen mit Beginn des beginning of the day on which such payment is Tages der tatsächlichen Zahlung. Der in einem made. In such case the applicable rate of interest solchen Fall jeweils anzuwendende Zinssatz will be determined pursuant to this § 3. wird gemäß diesem § 3 bestimmt.
(4) Feststellung des Referenzsatzes. Die Berech- (4) Determination of the Reference Rate. The nungsstelle bestimmt an jedem Calculation Agent will determine the relevant Zinsfeststellungstag den betreffenden Reference Rate in accordance with this § 3(4) Referenzsatz nach Maßgabe dieses § 3(4). on each Interest Determination Date.
Der "Referenzsatz" für einen Zinsanpassungs- The "Reference Rate" for a Reset Period will zeitraum wird von der Berechnungsstelle an be determined by the Calculation Agent on the dem betreffenden Zinsfeststellungstag (wie relevant Interest Determination Date (as defined nachstehend definiert) vor dem Zinsanpas- below) prior to the Reset Date on which the sungstag, an dem der betreffende Zinsanpas- relevant Reset Period commences (the sungszeitraum beginnt (der "Referenz-Zinsan- "Reference Reset Date") as follows: passungstag"), wie folgt festgelegt:
(a) Für jeden Zinsanpassungszeitraum, der (a) For each Reset Period beginning prior to vor dem Eintritt des jeweiligen Stichtags the occurrence of the relevant Effective (wie in § 3(5)(g) definiert) beginnt, Date (as defined in § 3(5)(g)), the entspricht der Referenzsatz dem Reference Rate will be equal to the Ursprünglichen Benchmarksatz an dem Original Benchmark Rate on the relevant betreffenden Zinsfeststellungstag. Interest Determination Date.
Falls der Ursprüngliche Benchmarksatz If the Original Benchmark Rate does not zu dem betreffenden Zeitpunkt an dem appear on the Screen Page as at such betreffenden Zinsfeststellungstag nicht time on the relevant Interest auf der Bildschirmseite angezeigt wird, Determination Date, the "Reference entspricht der "Referenzsatz" dem Rate" will be equal to the Reference Referenzbankensatz an diesem Bank Rate on that Interest Determination betreffenden Zinsfeststellungstag. Date.
Kann der Referenzbankensatz nicht If the Reference Bank Rate cannot be gemäß der Definition dieses Begriffs determined pursuant to the definition of bestimmt werden, entspricht der this term, the relevant "Reference Rate" jeweilige "Referenzsatz" dem durch die shall be equal to the last Original Bench- Berechnungsstelle festgelegten
54 Ursprünglichen Benchmarksatz, mark Rate available on the Screen Page welcher zuletzt auf der Bildschirmseite as determined by the Calculation Agent. verfügbar war.
(b) Für jeden Zinsanpassungszeitraum, der (b) For each Reset Period commencing on an oder nach dem jeweiligen Stichtag or after the relevant Effective Date, the beginnt, wird der "Referenzsatz" gemäß "Reference Rate" will be determined in § 3(5) bestimmt. accordance with § 3(5).
"Ursprünglicher Benchmarksatz" "Original Benchmark Rate" means the bezeichnet den um 11:00 Uhr annual swap rate which is fixed at 11:00 (Frankfurter Zeit) gefixten, als a.m. (Frankfurt time) and is expressed as Prozentsatz ausgedrückten Swapsatz per a percentage per annum for Euro annum für in Euro denominierte Swap- denominated swap transactions with a Transaktionen mit einer Laufzeit von 5 maturity of 5 years which appears on the Jahren, der auf der Bildschirmseite am Screen Page on the relevant Interest betreffenden Zinsfeststellungstag gegen Determination Date at or around 11:00 11:00 Uhr (Frankfurter Zeit) angezeigt a.m. (Frankfurt time). wird.
Der "Referenzbankensatz" ist der "Reference Bank Rate" means the Prozentsatz, der auf Basis der 5-Jahres- percentage rate determined by the Mid-Swapsatz-Quotierungen, die der Calculation Agent on the basis of the 5- Berechnungsstelle auf Bitten der year Mid Swap Rate Quotations Emittentin ungefähr um 11:00 Uhr provided by up to five leading swap (Frankfurter Zeit) von bis zu fünf dealers in the interbank market selected führenden von der Emittentin by the Issuer to the Calculation Agent at ausgewählten Swap-Händlern im the request of the Issuer at Interbankenhandel gestellt werden, am approximately 11:00 a.m. (Frankfurt Zinsfeststellungstag von der Berech- time) on the Interest Determination nungsstelle festgelegt wird. Wenn Date. If at least three 5-year Mid Swap mindestens drei 5-Jahres-Mid- Rate Quotations are provided, the Swapsatz-Quotierungen genannt Reference Bank Rate will be the werden, wird der Referenzbankensatz arithmetic mean of the quotations, das arithmetische Mittel der 5-Jahres- eliminating the highest quotation (or, in Mid-Swapsatz-Quotierungen unter the event of equality one of the highest) Ausschluss der höchsten Quotierung and the lowest quotation (or, in the event (bzw., für den Fall von gleich hohen of equality, one of the lowest). If only Quotierungen, einer der höchsten two 5-year Mid Swap Rate Quotations Quotierungen) und der niedrigsten are provided, the Reference Bank Rate Quotierung (bzw., für den Fall von will be the arithmetic mean of the gleich hohen Quotierungen, einer der quotations provided. If only one 5-year niedrigsten Quotierungen) sein. Falls Mid Swap Rate Quotation is provided, nur zwei 5-Jahres-Mid-Swapsatz- the Reference Bank Rate will be the Quotierungen zur Verfügung gestellt quotation provided. For this purpose, "5- werden, ist der Referenzbankensatz das year Mid Swap Rate Quotation" rechnerische Mittel der zur Verfügung means the arithmetic mean of the bid and gestellten Quotierungen. Falls nur eine offered rates for the annual fixed rate leg 5-Jahres-Mid-Swapsatz-Quotierung zur (calculated on a 30/360 day count basis) Verfügung gestellt wird, ist der of a fixed-for-floating Euro interest rate Referenzbankensatz gleich der zur swap transaction which transaction Verfügung gestellten Quotierung. Dabei (x) has a term of 5 years and bezeichnet "5-Jahres-Mid-Swapsatz- commencing on the relevant Reset Date,
55 Quotierung" das arithmetische Mittel (y) is in an amount that is representative der nachgefragten (bid) und of a single transaction in the relevant angebotenen (offered) Prozentsätze für market at the relevant time with an den jährlichen Festzinszahlungsstrom acknowledged dealer of good credit in (berechnet auf einer 30/360 Tage- the swap market, and (z) has a floating Berechnungsbasis) einer fixed-for- leg based on the 6-month EURIBOR rate floating Euro Zinsswap-Transaktion, (calculated on an Actual/360 day count (x) die eine 5-jährige Laufzeit hat und basis). am betreffenden Zinsanpassungstag beginnt, (y) die auf einen Betrag lautet, der dem einer repräsentativen einzelnen Transaktion in dem relevanten Markt zur relevanten Zeit eines anerkannten Händlers mit guter Bonität im Swap- Markt entspricht, und (z) deren variabler Zahlungsstrom auf dem 6-Monats EURIBOR Satz beruht (berechnet auf einer Actual/360 Tage- Berechnungsbasis).
Dabei gilt Folgendes: Where:
"Bildschirmseite" bezeichnet die "Screen Page" means Reuters Screen Reuters Bildschirmseite "ICESWAP2 / Page "ICESWAP2 / EURFIXA" under EURFIXA" unter der Überschrift the heading "EURIBOR BASIS" and the "EURIBOR BASIS" und dem Untertitel caption "11:00 AM Frankfurt time" (as "11:00 AM Frankfurt time" (auf dem such headings and captions may appear solche Überschriften und Untertitel von from time to time). If the Screen Page Zeit zu Zeit erscheinen). Hat die permanently ceases to quote the Original Bildschirmseite dauerhaft aufgehört, den Benchmark Rate but such quotation is Ursprünglichen Benchmarksatz available from another page selected by anzugeben, ist diese Quotierung jedoch the Issuer in its reasonable discretion auf einer anderen, von der Emittentin (the "Replacement Screen Page"), the nach billigem Ermessen ausgewählten Replacement Screen Page must be used Bildschirmseite verfügbar (die for the purpose of the determination of "Ersatzbildschirmseite"), wird die the Original Benchmark Rate. Ersatzbildschirmseite zum Zweck der Festlegung des Ursprünglichen Bench- marksatzes eingesetzt.
"TARGET-Geschäftstag" bezeichnet "TARGET Business Day" means a day einen Tag, an dem das Trans-European on which the Trans-European Automated Real-time Gross settlement Automated Real-time Gross settlement Express Transfer system 2 (TARGET2) Express Transfer system 2 (TARGET2) betriebsbereit ist. is operational.
"Zinsanpassungstag" bezeichnet den "Reset Date" means the First Reset Date Ersten Zinsanpassungstag und danach and thereafter each fifth anniversary of jeden fünften Jahrestag des the immediately preceding Reset Date. vorausgegangenen Zinsanpassungstags.
"Zinsanpassungszeitraum" bezeichnet "Reset Period" means each period from jeden Zeitraum ab dem Ersten Zinsan- and including the First Reset Date to but passungstag (einschließlich) bis zum excluding the next following Reset Date
56 nächstfolgenden Zinsanpassungstag and thereafter from and including each (ausschließlich) und nachfolgend ab Reset Date to but excluding the next jedem Zinsanpassungstag following Reset Date. (einschließlich) bis zu dem jeweils nächstfolgenden Zinsanpassungstag (ausschließlich).
"Zinsfeststellungstag" bezeichnet den "Interest Determination Date" means zweiten TARGET-Geschäftstag vor the second TARGET Business Day prior dem betreffenden Referenz-Zinsanpas- to the relevant Reference Reset Date. sungstag.
(5) Benchmark-Ereignis. Wenn ein Benchmark- (5) Benchmark Event. If a Benchmark Event (as Ereignis (wie in § 3(5)(f) definiert) in Bezug auf defined in § 3(5)(f)) occurs in relation to the den Ursprünglichen Benchmarksatz eintritt, gilt Original Benchmark Rate, the relevant für die Bestimmung des betreffenden Reference Rate and the interest on the Notes in Referenzsatzes und die Verzinsung der Schuld- accordance with § 3 will be determined as verschreibungen gemäß § 3 Folgendes: follows:
(a) Unabhängiger Berater. Die Emittentin (a) Independent Adviser. The Issuer shall, wird sich nach besten Kräften bemühen, as soon as this is (in the reasonable sobald dies (nach billigem Ermessen der discretion of the Issuer) required Emittentin) nach Eintritt des Bench- following the occurrence of the Bench- mark-Ereignisses und vor dem nächsten mark Event and prior to the next Interest Zinsfeststellungstag erforderlich ist, Determination Date, use its best efforts einen Unabhängigen Berater (wie in to appoint an Independent Adviser (as § 3(5)(f) definiert) zu benennen, der defined in § 3(5)(f)), who will determine einen Neuen Benchmarksatz (wie in a New Benchmark Rate (as defined in § 3(5)(f) definiert), die § 3(5)(f)), the Adjustment Spread (as Anpassungsspanne (wie in § 3(5)(f) defined in § 3(5)(f)) and any Benchmark definiert) und etwaige Benchmark- Amendments (in accordance with Änderungen (gemäß § 3(5)(d)) festlegt. § 3(5)(d)).
(b) Ausweichsatz (Fallback Rate). Wenn (b) Fallback rate. If, prior to the 10th vor dem 10. Geschäftstag vor dem Business Day prior to the relevant betreffenden Zinsfeststellungstag Interest Determination Date,
(i) die Emittentin keinen (i) the Issuer has not appointed an Unabhängigen Berater benannt Independent Adviser; or hat; oder
(ii) der benannte Unabhängige (ii) the Independent Adviser Berater keinen Neuen Bench- appointed by it has not marksatz, keine determined a New Benchmark Anpassungsspanne und/oder Rate, has not determined the keine Benchmark-Änderungen Adjustment Spread and/or has (sofern erforderlich) gemäß not determined the Benchmark diesem § 3(5) festgelegt hat, Amendments (if required) in accordance with this § 3(5),
dann entspricht der "Referenzsatz" für then the "Reference Rate" applicable to den nächsten Zinsanpassungszeitraum the next Reset Period shall be the dem an dem letzten zurückliegenden
57 Zinsfeststellungstag festgestellten Reference Rate determined on the last Referenzsatz. preceding Interest Determination Date.
Falls dieser § 3(5)(b) bereits an dem If this § 3(5)(b) is to be applied on the Zinsfeststellungstag für den Ersten Zins- Interest Determination Date for the First anpassungstag angewendet werden Reset Date, the Reference Rate muss, entspricht der Referenzsatz für applicable to the first Reset Period shall den ersten Zinsanpassungs- be – 0.424 per cent. per annum.6 zeitraum - 0,424 % per annum.5
Falls der gemäß diesem § 3(5)(b) If the fallback rate determined in bestimmte Ausweichsatz (Fallback accordance with this § 3(5)(b) is to be Rate) zur Anwendung kommt, wird applied, § 3(5) will be operated again to § 3(5) erneut angewendet, um den determine the Reference Rate applicable Referenzsatz für den nächsten to the next subsequent (and, if required, nachfolgenden Zinsanpassungszeitraum further subsequent) Reset Period(s). (und, sofern notwendig, weitere nachfolgende Zinsanpassungszeiträu- me) zu bestimmen.
(c) Nachfolge-Benchmarksatz oder (c) Successor Benchmark Rate or Alternativ-Benchmarksatz. Falls der Alternative Benchmark Rate. If the Unabhängige Berater nach billigem Independent Adviser determines in its Ermessen feststellt, reasonable discretion that:
(i) dass es einen Nachfolge-Bench- (i) there is a Successor Benchmark marksatz gibt, dann ist dieser Rate, then such Successor Bench- Nachfolge-Benchmarksatz der mark Rate shall subsequently be Neue Benchmarksatz; oder the New Benchmark Rate; or
(ii) dass es keinen Nachfolge-Bench- (ii) there is no Successor Benchmark marksatz aber einen Alternativ- Rate but that there is an Benchmarksatz gibt, dann ist Alternative Benchmark Rate, dieser Alternativ-Benchmarksatz then such Alternative Benchmark der Neue Benchmarksatz. Rate shall subsequently be the New Benchmark Rate.
In beiden Fällen entspricht der In either case the "Reference Rate" for "Referenzsatz" für den unmittelbar the immediately following Reset Period nachfolgenden Zinsanpassungszeitraum and all following Reset Periods will then und alle folgenden Zinsanpassungszeit- be (x) the New Benchmark Rate on the räume dann (x) dem Neuen Bench- relevant Interest Determination Date marksatz an dem betreffenden plus (y) the Adjustment Spread. Zinsfeststellungstag zuzüglich (y) der Anpassungsspanne.
(d) Benchmark-Änderungen. Wenn ein (d) Benchmark Amendments. If any Neuer Benchmarksatz und die relevant New Benchmark Rate and the entsprechende Anpassungsspanne applicable Adjustment Spread are gemäß diesem § 3(5) festgelegt werden, determined in accordance with this
5 Entspricht der Reoffer-Rendite abzüglich der ursprünglichen Kreditmarge im Zeitpunkt der Preisfindung. 6 Equal to the Reoffer-Yield minus the initial credit spread at the time of pricing.
58 und wenn der Unabhängige Berater § 3(5), and if the Independent Adviser feststellt, dass resultierend aus den determines that, resulting from the vorgenannten Festlegungen Änderungen aforementioned determinations, der Bedingungen für die Feststellungen amendments to the conditions for the des anwendbaren Zinssatzes notwendig determination of the applicable Rate of sind, um die ordnungsgemäße Interest are necessary to ensure the Anwendung des Neuen Bench- proper operation of such New Bench- marksatzes und der entsprechenden mark Rate and the applicable Anpassungsspanne zu gewährleisten Adjustment Spread (such amendments, (diese Änderungen, die "Benchmark- the "Benchmark Amendments"), then Änderungen"), dann wird der the Independent Adviser will determine Unabhängige Berater die Benchmark- the Benchmark Amendments and the Änderungen feststellen, und wird die Issuer will give notice thereof in Emittentin diese durch eine Mitteilung accordance with § 3(5)(e). gemäß § 3(5)(e) bekanntmachen.
Diese Benchmark-Änderungen können The Benchmark Amendments may insbesondere folgende Regelungen in include, without limitation, the diesen Anleihebedingungen erfassen: following conditions of these Terms and Conditions:
(i) den Referenzsatz einschließlich (i) the Reference Rate including the der "Bildschirmseite" und/oder "Screen Page" and/or the method die Methode zur Bestimmung des for determining the fallback rate Ausweichsatzes (sog. Fallback in relation to the Reference Rate, Rate) für den Referenzsatz including the Reference Bank einschließlich des Rate; and/or Referenzbankensatzes; und/oder
(ii) die Definitionen der Begriffe (ii) the definitions of the terms "Geschäftstag", "Business Day", "Interest "Zinszahlungstag", Payment Date", "Interest Period", "Zinsperiode", "Day Count Fraction" and/or "Zinstagequotient" und/oder "Interest Determination Date" "Zinsfeststellungstag" (including the determination (einschließlich der Festlegung ob whether the Reference Rate will der Referenzsatz vorwärts- oder be determined on a forward rückwärtsgerichtet bestimmt looking or a backward looking wird); und/oder basis); and/or
(iii) der Geschäftstagekonvention (iii) the business day convention in gemäß § 5(4). § 5(4).
(e) Mitteilungen, etc. Die Emittentin wird (e) Notices, etc. The Issuer will notify any einen Neuen Benchmarksatz, die New Benchmark Rate, the Adjustment Anpassungsspanne und etwaige Bench- Spread and the Benchmark Amendments mark-Änderungen gemäß diesem § 3(5) (if any) determined under this § 3(5) to der Hauptzahlstelle, der Berechnungs- the Principal Paying Agent, the stelle, den Zahlstellen, der Garantin und Calculation Agent, the Paying Agents, gemäß § 13 den Anleihegläubigern the Guarantor and, in accordance with mitteilen, und zwar sobald eine solche § 13, the Noteholders as soon as such Mitteilung (nach Ansicht der Emittentin) notification is (in the Issuer's view) nach deren Feststellung erforderlich ist, required following the determination
59 spätestens jedoch an dem 10. thereof, but in any event not later than on Geschäftstag vor dem betreffenden the 10th Business Day prior to the Zinsfeststellungstag. Eine solche relevant Interest Determination Date. Mitteilung ist unwiderruflich und hat Such notice shall be irrevocable and den Stichtag zu benennen. shall specify the Effective Date.
Der Neue Benchmarksatz, die The New Benchmark Rate, the Anpassungsspanne und etwaige Bench- Adjustment Spread and the Benchmark mark-Änderungen, die jeweils in der Amendments (if any), each as specified Mitteilung benannt werden, sind für die in such notice, will be binding on the Emittentin, die Garantin, die Issuer, the Guarantor, the Principal Hauptzahlstelle, die Berechnungsstelle, Paying Agent, the Calculation Agent, the die Zahlstellen und die Anleihegläubiger Paying Agents and the Noteholders. The bindend. Die Anleihebedingungen Terms and Conditions shall be deemed gelten ab dem Stichtag als durch den to have been amended by the New Neuen Benchmarksatz, die Benchmark Rate, the Adjustment Spread Anpassungsspanne und die etwaigen and the Benchmark Amendments, if any, Benchmark-Änderungen geändert. with effect from the Effective Date.
An oder vor dem Tag dieser Mitteilung On or prior to the date of such notice, the hat die Emittentin der Hauptzahlstelle Issuer shall deliver to the Principal und der Berechnungsstelle eine durch Paying Agent and the Calculation Agent zwei Unterschriftsberechtigte der a certificate signed by two authorised Emittentin unterzeichnete signatories of the Issuer: Bescheinigung zu übergeben, die
(i) (i)
(A) bestätigt, dass ein Bench- (A) confirming that a Bench- mark-Ereignis eingetreten mark Event has occurred; ist;
(B) den nach Maßgabe der (B) specifying the relevant Bestimmungen dieses New Benchmark Rate § 3(5) festgestellten determined in accordance Neuen Benchmarksatz with the provisions of this benennt; § 3(5);
(C) die entsprechende (C) specifying the applicable Anpassungsspanne und Adjustment Spread and etwaige Benchmark- the Benchmark Änderungen benennt, die Amendments (if any), jeweils nach Maßgabe der each determined in Bestimmungen dieses accordance with the § 3(5) festgestellt wurden; provisions of this § 3(5); und and
(D) den Stichtag benennt; und (D) specifying the Effective Date; and
(ii) bestätigt, dass die etwaigen (ii) confirming that the Benchmark Benchmark-Änderungen Amendments, if any, are notwendig sind, um die necessary to ensure the proper ordnungsgemäße Anwendung operation of such relevant New des Neuen Benchmarksatzes und
60 der entsprechenden Benchmark Rate and the Anpassungsspanne zu applicable Adjustment Spread. gewährleisten.
(f) Definitionen. Zur Verwendung in (f) Definitions. As used in this § 3(5): diesem § 3(5):
Die "Anpassungsspanne", die positiv, The "Adjustment Spread", which may negativ oder gleich Null sein kann, wird be positive, negative or zero, will be in Basispunkten ausgedrückt und expressed in basis points and means bezeichnet entweder (a) die Spanne oder either (a) the spread, or (b) the result of (b) das Ergebnis der Anwendung der the operation of the formula or Formel oder Methode zur Berechnung methodology for calculating the spread, der Spanne, die which
(1) im Fall eines Nachfolge-Bench- (1) in the case of a Successor Bench- marksatzes formell im mark Rate, is formally Zusammenhang mit der recommended in relation to the Ersetzung des Ursprünglichen replacement of the Original Benchmarksatzes durch den Benchmark Rate with the Nachfolge-Benchmarksatz von Successor Benchmark Rate by dem Nominierungsgremium any Relevant Nominating Body; empfohlen wird; oder or
(2) (sofern keine Empfehlung (2) (if no such recommendation has abgegeben wurde oder im Fall been made, or in the case of an eines Alternativ-Bench- Alternative Benchmark Rate) is marksatzes) üblicherweise an den customarily applied to the New internationalen Benchmark Rate in the Anleihekapitalmärkten auf den international debt capital markets Neuen Benchmarksatz to produce an industry-accepted angewendet wird, um einen replacement benchmark rate for industrieweit akzeptierten Ersatz- the Original Benchmark Rate, Benchmarksatz für den provided that all determinations Ursprünglichen Benchmarksatz will be made by the Independent zu erzeugen, wobei sämtliche Adviser in its reasonable Feststellungen durch den discretion; or Unabhängigen Berater nach billigem Ermessen vorgenommen werden; oder
(3) (sofern der Unabhängige Berater (3) (if the Independent Adviser in its nach billigem Ermessen feststellt, reasonable discretion determines dass keine solche Spanne that no such spread is customarily üblicherweise angewendet wird, applied and that the following und dass das Folgende would be appropriate for the angemessen ist für die Schuldver- Notes) is recognised or schreibungen) als industrieweiter acknowledged as being the Standard für Over-the-Counter industry standard for over-the- Derivatetransaktionen, die sich counter derivative transactions auf den Ursprünglichen Bench- which reference the Original marksatz beziehen, anerkannt Benchmark Rate, where the und bestätigt ist, wenn der Original Benchmark Rate has
61 Ursprüngliche Benchmarksatz been replaced by the New Bench- durch den Neuen Benchmarksatz mark Rate, provided that all ersetzt worden ist, wobei determinations will be made by sämtliche Feststellungen durch the Independent Adviser in its den Unabhängigen Berater nach reasonable discretion. billigem Ermessen vorgenommen werden.
"Alternativ-Benchmarksatz" "Alternative Benchmark Rate" means bezeichnet eine alternative Benchmark an alternative benchmark or screen rate oder einen alternativen Bildschirmsatz, which is customarily applied in the die bzw. der üblicherweise an den international debt capital markets for the internationalen Anleihekapitalmärkten purpose of determining reset rates of zur Bestimmung von Reset-Zinssätzen interest or mid swap rates in Euro, bzw. Mid-Swap-Sätzen in Euro provided that all determinations will be angewendet wird, wobei sämtliche made by the Independent Adviser. Feststellungen durch den Unabhängigen Berater vorgenommen werden.
Ein "Benchmark-Ereignis" tritt ein, A "Benchmark Event" occurs if: wenn:
(1) der Ursprüngliche Bench- (1) the Original Benchmark Rate marksatz nicht mehr regelmäßig ceases to be published on a veröffentlicht wird oder nicht regular basis or ceases to exist; or mehr erstellt wird; oder
(2) eine öffentliche Erklärung des (2) a public statement by the Administrators des administrator of the Original Ursprünglichen Bench- Benchmark Rate is made that it marksatzes veröffentlicht wird, has ceased or that it will cease wonach dieser die publishing the Original Bench- Veröffentlichung des mark Rate permanently or Ursprünglichen Bench- indefinitely (in circumstances marksatzes dauerhaft oder auf where no successor administrator unbestimmte Zeit eingestellt hat has been appointed that will oder einstellen wird (in Fällen in continue the publication of the denen kein Original Benchmark Rate); or Nachfolgeadministrator ernannt worden ist, der die Veröffentlichung des Ursprünglichen Bench- marksatzes vornehmen wird); oder
(3) eine öffentliche Erklärung der (3) a public statement by the Aufsichtsbehörde des supervisor of the administrator of Administrators des the Original Benchmark Rate is Ursprünglichen Bench- made that the Original Bench- marksatzes veröffentlicht wird, mark Rate has been or will be wonach der Ursprüngliche permanently or indefinitely Benchmarksatz dauerhaft oder discontinued; or auf unbestimmte Zeit nicht mehr
62 fortgeführt wird oder nicht mehr fortgeführt werden wird; oder
(4) eine öffentliche Erklärung der (4) a public statement by the Aufsichtsbehörde des supervisor of the administrator of Administrators des the Original Benchmark Rate is Ursprünglichen Bench- made as a consequence of which marksatzes veröffentlicht wird, the Original Benchmark Rate will aufgrund derer der Ursprüngliche be prohibited from being used Benchmarksatz allgemein oder in either generally, or in respect of Bezug auf die Schuldverschrei- the Notes; or bungen nicht mehr verwendet werden darf; oder
(5) die Verwendung des (5) it has become unlawful for any Ursprünglichen Bench- Paying Agent, the Calculation marksatzes zur Berechnung Agent, the Issuer, the Guarantor jedweder Zahlungen an or any other party to calculate any Anleihegläubiger für die payments due to be made to any Zahlstellen, die Berechnungsstel- Noteholder using the Original le, die Emittentin, die Garantin Benchmark Rate; or oder jeden Dritten rechtswidrig geworden ist; oder
(6) eine öffentliche Erklärung der (6) a public statement by the Aufsichtsbehörde des supervisor for the administrator Administrators des of the Original Benchmark Rate Ursprünglichen Bench- is made announcing that the marksatzes veröffentlicht wird, Original Benchmark Rate is no mit der bekanntgegeben wird, longer representative; or dass der Ursprüngliche Bench- marksatz nicht mehr repräsentativ ist; oder
(7) sich die Methode für die (7) the methodology for the Feststellung des Ursprünglichen determination of the Original Benchmarksatzes gegenüber der Benchmark Rate is materially Methode, die der Administrator altered compared to the des Ursprünglichen Bench- methodology as used by the marksatzes bei Zinslaufbeginn administrator of the Original anwendete, wesentlich ändert. Benchmark Rate at the Interest Commencement Date.
"Nachfolge-Benchmarksatz" "Successor Benchmark Rate" means a bezeichnet einen Nachfolger oder Ersatz successor to or replacement of the des Ursprünglichen Benchmarksatzes, Original Benchmark Rate which is der formell durch das formally recommended by any Relevant Nominierungsgremium empfohlen Nominating Body. wurde.
"Neuer Benchmarksatz" bezeichnet "New Benchmark Rate" means the den jeweils gemäß diesem § 3(5) Successor Benchmark Rate or, as the case may be, the Alternative Benchmark
63 bestimmten Nachfolge-Benchmarksatz Rate determined in accordance with this bzw. Alternativ-Benchmarksatz. § 3(5).
"Nominierungsgremium" bezeichnet "Relevant Nominating Body" means, in Bezug auf die Ersetzung des in respect of the replacement of the Ursprünglichen Benchmarksatzes: Original Benchmark Rate:
(1) die Zentralbank für die Währung, (1) the central bank for the currency in der die Benchmark oder der to which the benchmark or screen Bildschirmsatz dargestellt wird, rate (as applicable) relates, or any oder eine Zentralbank oder central bank or other supervisory andere Aufsichtsbehörde, die für authority which is responsible for die Aufsicht des Administrators supervising the administrator of der Benchmark oder des the benchmark or screen rate (as Bildschirmsatzes zuständig ist; applicable); or oder
(2) jede Arbeitsgruppe oder jeden (2) any working group or committee Ausschuss gefördert durch, sponsored by, chaired or co- geführt oder mitgeführt von oder chaired by or constituted at the gebildet von (a) der Zentralbank request of (a) the central bank for für die Währung in der die the currency to which the bench- Benchmark oder der mark or screen rate (as Bildschirmsatz dargestellt wird, applicable) relates, (b) any (b) einer Zentralbank oder central bank or other supervisory anderen Aufsichtsbehörde, die authority which is responsible for für die Aufsicht des supervising the administrator of Administrators der Benchmark the benchmark or screen rate (as oder des Bildschirmsatzes applicable), (c) a group of the zuständig ist, (c) einer Gruppe aforementioned central banks or der zuvor genannten other supervisory authorities or Zentralbanken oder anderer (d) the Financial Stability Board Aufsichtsbehörden oder (d) dem or any part thereof. Finanzstabilitätsrat (Financial Stability Board) oder Teilen davon.
"Unabhängiger Berater" bezeichnet "Independent Adviser" means an ein von der Emittentin ernanntes independent financial institution of unabhängiges Finanzinstitut mit international repute or other independent internationalem Ansehen oder einen financial adviser experienced in the anderen unabhängigen Finanzberater international debt capital markets, in mit Erfahrung in internationalen each case appointed by the Issuer. Anleihekapitalmärkten.
(g) Stichtag. Der Stichtag für die (g) Effective Date. The effective date for Anwendung des Neuen Bench- the application of the New Benchmark marksatzes, der Anpassungsspanne und Rate, the Adjustment Spread and the der etwaigen Benchmark-Änderungen Benchmark Amendments (if any) gemäß diesem § 3(5) (der "Stichtag") ist determined under this § 3(5) (the der Zinsfeststellungstag, der auf den "Effective Date") will be the Interest frühesten der folgenden Tage fällt oder Determination Date falling on or after diesem nachfolgt: the earliest of the following dates:
64 (i) den Tag des Eintritts des Bench- (i) if the Benchmark Event has mark-Ereignisses, wenn das occurred as a result of clauses (1), Benchmark-Ereignis aufgrund (6) or (7) of the definition of the der Absätze (1), (6) oder (7) der term "Benchmark Event", the Definition des Begriffs "Bench- date of the occurrence of the mark-Ereignis" eingetreten ist; Benchmark Event; or oder
(ii) den Tag, an dem die (ii) if the Benchmark Event has Veröffentlichung des occurred as a result of clauses (2), Ursprünglichen Bench- (3) or (4) of the definition of the marksatzes eingestellt wird bzw. term "Benchmark Event", the an dem der Ursprüngliche Bench- date of cessation of publication of marksatz eingestellt wird, wenn the Original Benchmark Rate or das Benchmark-Ereignis of the discontinuation of the aufgrund der Absätze (2), (3) Original Benchmark Rate, as the oder (4) der Definition des case may be; or Begriffs "Benchmark-Ereignis" eingetreten ist; oder
(iii) den Tag, ab dem der (iii) if the Benchmark Event has Ursprüngliche Benchmarksatz occurred as a result of clause (5) nicht mehr verwendet werden of the definition of the term darf, wenn das Benchmark- "Benchmark Event", the date Ereignis aufgrund des Absatzes from which the prohibition (5) der Definition des Begriffs applies. "Benchmark-Ereignis" eingetreten ist.
(h) Wenn ein Benchmark-Ereignis in Bezug (h) If a Benchmark Event occurs in relation auf einen Neuen Benchmarksatz eintritt, to any New Benchmark Rate, § 3(5) gilt dieser § 3(5) entsprechend für die shall apply mutatis mutandis to the Ersetzung des Neuen Benchmarksatzes replacement of such New Benchmark durch einen neuen Nachfolge-Bench- Rate by any new Successor Benchmark marksatz bzw. Alternativ-Bench- Rate or Alternative Benchmark Rate, as marksatz. In diesem Fall gilt jede the case may be. In this case, any Bezugnahme in diesem § 3 auf den reference in this § 3 to the term Original Begriff Ursprünglicher Benchmarksatz Benchmark Rate shall be deemed to be a als Bezugnahme auf den zuletzt reference to the New Benchmark Rate verwendeten Neuen Benchmarksatz. that last applied.
(i) In diesem § 3(5) schließt jede (i) Any reference in this § 3(5) to the term Bezugnahme auf den Begriff Original Benchmark Rate shall be "Ursprünglicher Benchmarksatz" deemed to include a reference to any gegebenenfalls auch eine Bezugnahme component part thereof, if any, in respect auf jede etwaige Teilkomponente des of which a Benchmark Event has Ursprünglichen Benchmarksatzes ein, occurred. wenn in Bezug auf diese Teilkomponente ein Benchmark- Ereignis eingetreten ist.
65 § 4 § 4 FÄLLIGKEIT VON ZINSZAHLUNGEN; DUE DATE FOR INTEREST PAYMENTS; AUFSCHUB VON ZINSZAHLUNGEN; DEFERRAL OF INTEREST PAYMENTS; ZAHLUNG AUFGESCHOBENER PAYMENT OF DEFERRED INTEREST ZINSZAHLUNGEN PAYMENTS
(1) Fälligkeit von Zinszahlungen; wahlweiser (1) Due date for interest payments; optional Zinsaufschub. interest deferral.
(a) Zinsen werden für jede Zinsperiode an (a) Interest for each Interest Period will be dem unmittelbar auf diese Zinsperiode due and payable (fällig) on the Interest folgenden Zinszahlungstag fällig, sofern Payment Date immediately following sich die Emittentin nicht durch eine such Interest Period, unless the Issuer Bekanntmachung an die elects, by giving not less than 10 and not Anleihegläubiger gemäß § 13 innerhalb more than 15 Business Days' notice to einer Frist von nicht weniger als 10 und the Noteholders prior to the relevant nicht mehr als 15 Geschäftstagen vor Interest Payment Date in accordance dem betreffenden Zinszahlungstag dazu with § 13, to defer the relevant payment entscheidet, die betreffende Zinszahlung of interest in whole or in part. insgesamt oder teilweise auszusetzen.
Wenn sich die Emittentin an einem If the Issuer elects not to pay accrued Zinszahlungstag insgesamt oder interest in whole or in part on an Interest teilweise zur Nichtzahlung Payment Date, then it will not have any aufgelaufener Zinsen entscheidet, dann obligation to pay interest to such extent ist sie insoweit nicht verpflichtet, an dem on such Interest Payment Date. Any such betreffenden Zinszahlungstag Zinsen zu election not to pay interest in whole or in zahlen. Eine Entscheidung zur part will not constitute a default of the Nichtzahlung begründet keinen Verzug Issuer or any other breach of its der Emittentin und keine anderweitige obligations under the Notes or for any Verletzung ihrer Verpflichtungen other purpose. aufgrund dieser Schuldverschreibungen oder für sonstige Zwecke.
Nach Maßgabe dieses § 4(1)(a) nicht Interest not due and payable in fällig gewordene Zinsen sind accordance with this § 4(1)(a) will aufgeschobene Zinszahlungen constitute deferred interest payments ("Aufgeschobene Zinszahlungen"). ("Deferred Interest Payments").
"Zinsperiode" bezeichnet jeden "Interest Period" means each period Zeitraum ab dem Zinslaufbeginn from and including the Interest (einschließlich) bis zum ersten Commencement Date to but excluding Zinszahlungstag (ausschließlich) und the first Interest Payment Date and nachfolgend ab jedem Zinszahlungstag thereafter from and including each (einschließlich) bis zu dem jeweils Interest Payment Date to but excluding nächstfolgenden Zinszahlungstag the next following Interest Payment (ausschließlich). Date.
(b) Aufgeschobene Zinszahlungen werden (b) Deferred Interest Payments will not bear nicht verzinst. interest.
66 (2) Freiwillige Zahlung von Aufgeschobenen (2) Optional Settlement of Deferred Interest Zinszahlungen. Die Emittentin ist berechtigt, Payments. The Issuer will be entitled to pay ausstehende Aufgeschobene Zinszahlungen outstanding Deferred Interest Payments in jederzeit insgesamt oder teilweise nach whole or in part at any time on giving not less Bekanntmachung an die Anleihegläubiger than 10 and not more than 15 Business Days' gemäß § 13 unter Einhaltung einer Frist von notice to the Noteholders in accordance with nicht weniger als 10 und nicht mehr als 15 § 13 which notice will specify (i) the (partial) Geschäftstagen nachzuzahlen, wobei eine amount of Deferred Interest Payments to be solche Bekanntmachung (i) den paid and (ii) the date fixed for such payment (gegebenenfalls anteiligen) Betrag an (the "Optional Settlement Date"). Aufgeschobenen Zinszahlungen, der gezahlt werden soll, und (ii) den für diese Zahlung festgelegten Termin (der "Freiwillige Nachzahlungstermin") enthalten muss.
(3) Pflicht zur Zahlung von Aufgeschobenen (3) Mandatory payment of Deferred Interest Zinszahlungen. Die Emittentin ist verpflichtet, Payments. The Issuer must pay outstanding ausstehende Aufgeschobene Zinszahlungen Deferred Interest Payments (in whole but not in insgesamt und nicht nur teilweise am nächsten part) on the next Mandatory Settlement Date. Pflichtnachzahlungstag zu zahlen.
"Pflichtnachzahlungstag" bezeichnet den "Mandatory Settlement Date" means the frühesten der folgenden Tage: earliest of:
(i) den Tag, der fünf Geschäftstage nach (i) the date falling five Business Days after dem Tag liegt, an dem ein the date on which a Compulsory Obligatorisches Nachzahlungsereignis Settlement Event has occurred; eingetreten ist;
(ii) den Tag, an dem die Emittentin oder die (ii) the date on which the Issuer or the Garantin vorgesehene Zinsen auf die Guarantor pays scheduled interest on the Schuldverschreibungen zahlt; Notes;
(iii) den Tag, an dem die Emittentin, die (iii) the date on which the Issuer, the Garantin oder eine Tochtergesellschaft Guarantor or any Subsidiary of the der Garantin eine Ausschüttung oder Guarantor pays any distribution or other sonstige Zahlung auf ein Gleichrangiges payment in respect of any Parity Wertpapier der Emittentin (mit Security of the Issuer (other than the Ausnahme der Schuldverschreibungen) Notes) or any Parity Security of the oder ein Gleichrangiges Wertpapier der Guarantor (other than the Guarantee in Garantin (mit Ausnahme der Garantie respect of the Notes); für die Schuldverschreibungen) zahlt;
(iv) den Tag, an dem die Emittentin, die (iv) the date on which the Issuer, the Garantin oder eine Tochtergesellschaft Guarantor or any Subsidiary of the der Garantin ein Gleichrangiges Guarantor redeems any Parity Security Wertpapier der Emittentin oder ein of the Issuer or any Parity Security of the Gleichrangiges Wertpapier der Garantin Guarantor, or the date falling five zurückzahlt, oder den Tag, der fünf Business Days after the date on which Geschäftstage nach dem Tag liegt, an the Issuer, the Guarantor or any dem die Emittentin, die Garantin oder Subsidiary of the Guarantor repurchases eine Tochtergesellschaft der Emittentin or otherwise acquires (in each case
67 oder der Garantin ein Gleichrangiges directly or indirectly) any Parity Security Wertpapier der Emittentin oder ein of the Issuer or any Parity Security of the Gleichrangiges Wertpapier der Garantin Guarantor; zurückkauft oder anderweitig erwirbt (jeweils direkt oder indirekt);
(v) den Tag an dem die Emittentin oder die (v) the date on which the Issuer or the Garantin die Schuldverschreibungen Guarantor redeems the Notes in gemäß diesen Anleihebedingungen accordance with these Terms and zurückzahlt oder den Tag, an dem die Conditions, or the date on which the Emittentin, die Garantin oder eine Issuer, the Guarantor or any Subsidiary Tochtergesellschaft der Garantin of the Guarantor repurchases or (jeweils direkt oder indirekt) Schuldver- otherwise acquires (in each case directly schreibungen zurückkauft oder or indirectly) Notes; and anderweitig erwirbt; und
(vi) den Tag, an dem eine Entscheidung (vi) the date on which an order is made for hinsichtlich der Auseinandersetzung, the winding up, liquidation or Liquidation oder Auflösung der dissolution of the Issuer or the Guarantor Emittentin oder der Garantin ergeht (other than for the purposes of or (sofern dies nicht für die Zwecke oder pursuant to a merger, reorganisation or als Folge einer Verschmelzung, einer restructuring whilst solvent, where the Umstrukturierung oder Sanierung continuing entity assumes substantially geschieht, bei der die Emittentin bzw. all of the assets and obligations of the die Garantin noch zahlungsfähig ist und Issuer or the Guarantor), bei der die fortführende Gesellschaft im Wesentlichen alle Vermögenswerte und Verpflichtungen der Emittentin oder der Garantin übernimmt), mit der Maßgabe, dass provided that
(A) in dem vorgenannten Fall (ii) kein (A) in the case (ii) above no Mandatory Pflichtnachzahlungstag vorliegt, wenn Settlement Date occurs if the Issuer in sich die Emittentin gemäß § 4(1)(a) dazu accordance with § 4(1)(a) has elected to entscheidet, eine vorgesehene defer the scheduled payment of interest Zinszahlung nur teilweise auszusetzen, only in part, and the Issuer or the und die Emittentin oder die Garantin den Guarantor pays the proportion of that nicht ausgesetzten Anteil an den scheduled interest that the Issuer does vorgesehenen Zinsen zahlt; not defer;
(B) in dem vorgenannten Fall (iii) kein (B) in the case (iii) above no Mandatory Pflichtnachzahlungstag vorliegt, wenn Settlement Date occurs if any partial gleichzeitig mit einer teilweisen payment of deferred interest or of arrears Nachzahlung von Aufgeschobenen of interest on a Parity Security of the Zinszahlungen auf die Issuer (other than the Notes) and/or a Schuldverschreibungen gemäß § 4(2) Parity Security of the Guarantor (other auch aufgeschobene Zinszahlungen oder than the Guarantee in respect of the Zinsrückstände auf ein Gleichrangiges Notes) is made concurrently with a Wertpapier der Emittentin (mit partial settlement of any Deferred Ausnahme der Schuldverschreibungen) Interest Payments on the Notes in oder ein Gleichrangiges Wertpapier der accordance with § 4(2), provided that Garantin (mit Ausnahme der Garantie such partial payment of deferred interest
68 für die Schuldverschreibungen) or of arrears of interest on a Parity teilweise nachgezahlt werden, Security of the Issuer (other than the vorausgesetzt, der anteilige Betrag der Notes) or Parity Security of the teilweisen Nachzahlung aufgeschobener Guarantor (other than the Guarantee in Zinszahlungen oder Zinsrückstände auf respect of the Notes) does not exceed the ein Gleichrangiges Wertpapier der proportion of the then outstanding Emittentin (mit Ausnahme der Schuld- Deferred Interest Payments on the Notes verschreibungen) oder ein that is being settled in accordance with Gleichrangiges Wertpapier der Garantin § 4(2); (mit Ausnahme der Garantie für die Schuldverschreibungen) entspricht höchstens dem Anteil an den dann ausstehenden Aufgeschobenen Zinszahlungen auf die Schuldverschreibungen, der gemäß § 4(2) nachgezahlt wird;
(C) in den vorgenannten Fällen (iii) und (iv) (C) in the cases (iii) and (iv) above no kein Pflichtnachzahlungstag vorliegt, Mandatory Settlement Date occurs if the wenn die Emittentin, die Garantin oder Issuer or the Guarantor or the relevant die betreffende Tochtergesellschaft der Subsidiary of the Guarantor is obliged Garantin nach Maßgabe der under the terms and conditions of such Bedingungen des betreffenden Parity Security of the Issuer or such Gleichrangigen Wertpapiers der Parity Security of the Guarantor or under Emittentin oder des betreffenden applicable law to make such payment, Gleichrangigen Wertpapiers der such redemption, such repurchase or Garantin oder gesetzlich zu der Zahlung, such other acquisition; zu der Rückzahlung, zu dem Rückkauf oder zu dem anderweitigen Erwerb verpflichtet ist;
(D) in den vorgenannten Fällen (iv) und (v) (D) in the cases (iv) and (v) above no kein Pflichtnachzahlungstag vorliegt, Mandatory Settlement Date occurs if the wenn die Emittentin, die Garantin oder Issuer or the Guarantor or the relevant die betreffende Tochtergesellschaft der Subsidiary of the Guarantor repurchases Garantin (jeweils direkt oder indirekt) or otherwise acquires (in each case ein Gleichrangiges Wertpapier der directly or indirectly) any Parity Security Emittentin oder ein Gleichrangiges of the Issuer or any Parity Security of the Wertpapier der Garantin oder Schuld- Guarantor or any Notes (in whole or in verschreibungen (insgesamt oder part) in a public tender offer or public teilweise) nach einem öffentlichen exchange offer at a consideration per Rückkaufangebot oder öffentlichen Parity Security of the Issuer or per Parity Umtauschangebot mit einer unter dem Security of the Guarantor or, as Nennwert liegenden Gegenleistung je applicable, per Note below its par value; Gleichrangigem Wertpapier der and Emittentin oder je Gleichrangigem Wertpapier der Garantin bzw. je Schuldverschreibung zurückkauft oder anderweitig erwirbt; und
(E) in den vorgenannten Fällen (iii), (iv) und (E) in the cases (iii), (iv) and (v) above no (v) kein Pflichtnachzahlungstag vorliegt, Mandatory Settlement Date occurs if the
69 wenn die betreffenden Zahlungen auf relevant payments on, or in respect of, oder in Bezug auf ein Gleichrangiges any Parity Security of the Issuer or any Wertpapier der Emittentin oder ein Parity Security of the Guarantor are Gleichrangiges Wertpapier der Garantin Intra-Group Payments. Konzerninterne Zahlungen sind.
Dabei gilt Folgendes: Where:
"Konzerninterne Zahlungen" sind "Intra-Group Payments" means Zahlungen, die von der Garantin an eine payments made by the Guarantor to a Tochtergesellschaft der Garantin Subsidiary of the Guarantor (including (einschließlich der Emittentin) und/oder the Issuer) and/or by a Subsidiary of the von einer Tochtergesellschaft der Guarantor (including the Issuer) to the Garantin (einschließlich der Emittentin) Guarantor and/or by one Subsidiary of an die Garantin und/oder von einer the Guarantor to another. Tochtergesellschaft der Garantin an eine andere erfolgen.
Ein "Obligatorisches Nachzahlungsereignis" "Compulsory Settlement Event" means any of bezeichnet vorbehaltlich des nachstehenden the following events, subject to the provisions Satzes 2 jedes der folgenden Ereignisse: in sentence 2 below:
(i) die Gesellschafterversammlung oder (i) the general meeting of shareholders ordentliche Hauptversammlung (soweit (Gesellschafterversammlung) or zum relevanten Zeitpunkt einschlägig) ordinary general meeting of der Garantin beschließt, eine Dividende, shareholders (ordentliche Hauptver- sonstige Ausschüttung oder sonstige sammlung) (if existing at the relevant Zahlung auf einen Gesellschaftsanteil point of time) of the Guarantor resolves oder eine Aktie einer beliebigen Gattung on the payment of any dividend, other der Garantin zu leisten; distribution or other payment on any company share or share of any class of the Guarantor;
(ii) die Emittentin, die Garantin oder eine (ii) the Issuer, the Guarantor or any Tochtergesellschaft der Garantin zahlt Subsidiary of the Guarantor pays any eine Dividende, sonstige Ausschüttung dividend, other distribution or other oder sonstige Zahlung auf ein payment in respect of any Junior Nachrangiges Wertpapier der Emittentin Security of the Issuer or any Junior oder ein Nachrangiges Wertpapier der Security of the Guarantor (other than a Garantin (mit Ausnahme einer dividend, distribution or payment which Dividende, Ausschüttung oder Zahlung is made in the form of company shares in Form von Gesellschaftsanteilen oder or shares of any class of the Guarantor); Aktien einer beliebigen Gattung der or Garantin); oder
(iii) die Emittentin, die Garantin oder eine (iii) the Issuer, the Guarantor or any Tochtergesellschaft der Garantin Subsidiary of the Guarantor redeems, (jeweils direkt oder indirekt) zahlt oder repurchases or otherwise acquires (in kauft ein Nachrangiges Wertpapier der each case directly or indirectly) any Emittentin oder ein Nachrangiges Junior Security of the Issuer or any Wertpapier der Garantin zurück oder Junior Security of the Guarantor. erwirbt es auf andere Weise.
70 In den vorgenannten Fällen (i) und (ii) tritt The cases (i) and (ii) above are subject to the jedoch kein Obligatorisches Nachzahlungs- proviso that no Compulsory Settlement Event ereignis ein, wenn die Garantin vor dem occurs if, prior to the date of a Qualified IPO, Zeitpunkt eines Qualifizierten IPO aus einem the Guarantor pays, from a balance sheet profit Bilanzgewinn einen nachzahlbaren (Bilanzgewinn), a cumulative advanced Vorausgewinnanteil auf dividend (nachzahlbarer Vorausgewinnanteil) Vorzugsgeschäftsanteile oder Vorzugsaktien in respect of any preference company shares (soweit zum relevanten Zeitpunkt einschlägig) (Vorzugsgeschäftsanteile) or preference shares der Garantin ausschüttet. (Vorzugsaktien) (if existing at the relevant point of time) of the Guarantor.
In den vorgenannten Fällen (ii) und (iii) tritt The cases (ii) and (iii) above are subject to the jedoch kein Obligatorisches Nachzahlungs- proviso that no Compulsory Settlement Event ereignis ein, wenn occurs if
(A) die Emittentin, die Garantin oder die (A) the Issuer, the Guarantor or the relevant betreffende Tochtergesellschaft der Subsidiary of the Guarantor is obliged Garantin nach Maßgabe der under the terms and conditions of such Bedingungen des betreffenden Junior Security of the Issuer or such Nachrangigen Wertpapiers der Junior Security of the Guarantor to make Emittentin oder des betreffenden such payment, such redemption, such Nachrangigen Wertpapiers der Garantin repurchase or such other acquisition; zu der Zahlung, zu der Rückzahlung, zu dem Rückkauf oder zu dem anderweitigen Erwerb verpflichtet ist;
(B) die Emittentin, die Garantin oder die (B) the Issuer, the Guarantor or the relevant betreffende Tochtergesellschaft der Subsidiary of the Guarantor repurchases Garantin einen Geschäftsanteil bzw. or otherwise acquires (in each case Aktie einer beliebigen Gattung der directly or indirectly) any company Garantin oder ein Nachrangiges share or share of any class of the Wertpapier der Emittentin oder ein Guarantor or any Junior Security of the Nachrangiges Wertpapier der Garantin Issuer or any Junior Security of the nach Maßgabe eines bestehenden oder Guarantor pursuant to the obligations of zukünftigen Aktienoptions- oder the Guarantor under any existing or Aktienbeteiligungsprogramms oder future stock option or stock ownership ähnlichen Programms für Mitglieder des programme or similar programme for Vorstands oder des Aufsichtsrats (oder, any members of the executive board or im Falle verbundener Unternehmen, supervisory board (or, in the case of ähnlicher Gremien) oder Mitarbeiter der affiliates, comparable boards) or Garantin oder mit ihr verbundener employees of the Guarantor or any of its Unternehmen (jeweils direkt oder affiliates; indirekt) zurückkauft oder anderweitig erwirbt;
(C) die betreffenden Zahlungen auf oder in (C) the relevant payments on, or in respect Bezug auf ein Nachrangiges Wertpapier of, any Junior Security of the Issuer or der Emittentin oder ein Nachrangiges any Junior Security of the Guarantor are Wertpapier der Garantin Konzerninterne Intra-Group Payments; or Zahlungen sind; oder
(D) Vorzugsgeschäftsanteile oder (D) any preference company shares Vorzugsaktien (soweit zum relevanten (Vorzugsgeschäftsanteile) or preference
71 Zeitpunkt einschlägig) der Garantin in shares (Vorzugsaktien) (if existing at the Stammgeschäftsanteile oder relevant point of time) of the Guarantor Stammaktien (soweit zum relevanten are converted to ordinary company Zeitpunkt einschlägig) der Garantin shares (Stammgeschäftsanteile) or umgewandelt werden. ordinary shares (Stammaktien) (if existing at the relevant point of time) of the Guarantor.
§ 5 § 5 ZAHLUNGEN PAYMENTS
(1) Zahlungen von Kapital und Zinsen. Zahlungen (1) Payment of Principal and Interest. Payments von Kapital in Bezug auf die Schuldverschrei- of principal in respect of the Notes shall be bungen erfolgen nach Maßgabe des made, subject to § 5(2) below, to the Clearing nachstehenden § 5(2) an das Clearingsystem System or to its order for credit to the accounts oder dessen Order zur Gutschrift auf den of the relevant account holders of the Clearing Konten der jeweiligen Kontoinhaber des System. Clearingsystems.
Die Zahlung von Zinsen in Bezug auf die Payments of interest in respect of the Notes Schuldverschreibungen erfolgt nach Maßgabe shall be made, subject to § 5(2) below, to the des nachstehenden § 5(2) an das Clearing System or to its order for credit to the Clearingsystem oder dessen Order zur accounts of the relevant account holders of the Gutschrift auf den Konten der jeweiligen Clearing System. Kontoinhaber des Clearingsystems.
Zahlungen von Zinsen in Bezug auf Payments of interest in respect of Notes Schuldverschreibungen, die durch die represented by the Temporary Global Note shall vorläufige Globalurkunde verbrieft sind, be made, subject to § 5(2), to the Clearing erfolgen nach Maßgabe von § 5(2) an das System or to its order for credit to the accounts Clearingsystem oder dessen Order zur of the relevant account holders of the Clearing Gutschrift auf den Konten der jeweiligen System, upon due certification as provided in Kontoinhaber des Clearingsystems, und zwar § 1(3)(b). nach ordnungsgemäßer Bescheinigung gemäß § 1(3)(b).
(2) Zahlungsweise. Vorbehaltlich geltender (2) Method of Payment. Subject to applicable steuerlicher und sonstiger gesetzlicher fiscal and other laws and regulations, payments Regelungen und Vorschriften erfolgen zu of amounts due in respect of the Notes shall be leistende Zahlungen auf die Schuldverschrei- made in Euro. bungen in Euro.
(3) Erfüllung. Die Emittentin bzw. die Garantin (3) Discharge. The Issuer or, as the case may be, wird durch Leistung der Zahlung an das the Guarantor shall be discharged by payment Clearingsystem oder dessen Order von ihrer to, or to the order of, the Clearing System. Zahlungspflicht befreit.
(4) Geschäftstagekonvention. Falls ein Fälligkeits- (4) Business Day Convention. If the due date for tag für die Zahlung von Kapital und/oder Zinsen any payment of principal and/or interest is not a kein Geschäftstag ist, erfolgt die Zahlung erst Business Day, the payment will be made only am nächstfolgenden Geschäftstag; die on the next Business Day. The Noteholders will Anleihegläubiger sind nicht berechtigt, Zinsen have no right to claim payment of any interest
72 oder eine andere Entschädigung wegen eines or other indemnity in respect of such delay in solchen Zahlungsaufschubs zu verlangen. payment.
§ 6 § 6 RÜCKZAHLUNG UND RÜCKKAUF REDEMPTION AND REPURCHASE
(1) Keine Endfälligkeit. Die Schuldverschreibun- (1) No Scheduled Redemption. The Notes have no gen haben keinen Endfälligkeitstag und werden, final maturity date and shall not be redeemed, außer gemäß den Bestimmungen in diesem § 6, except in accordance with the provisions set out nicht zurückgezahlt. in this § 6.
(2) Rückkauf. Die Emittentin, die Garantin oder (2) Repurchase. Subject to applicable laws, the eine Tochtergesellschaft der Garantin können, Issuer, the Guarantor or any Subsidiary of the soweit gesetzlich zulässig, jederzeit Schuldver- Guarantor may at any time purchase Notes in schreibungen auf dem freien Markt oder the open market or otherwise and at any price. anderweitig sowie zu jedem beliebigen Preis Such acquired Notes may be cancelled, held or kaufen. Derartig erworbene Schuldverschrei- resold. bungen können entwertet, gehalten oder wieder veräußert werden.
(3) Rückzahlung nach Wahl der Emittentin. (3) Redemption at the Option of the Issuer.
(a) Rückzahlung nach Wahl der Emittentin (a) Redemption at the Option of the Issuer at zu pari. Die Emittentin ist berechtigt, par. The Issuer may, upon giving notice durch Erklärung gemäß § 6(6) die in accordance with § 6(6), call the Notes Schuldverschreibungen (insgesamt und for redemption (in whole but not in part) nicht nur teilweise) mit Wirkung zu with effect as of any date during the jedem Tag während des Zeitraums ab period from and including 20 April 2026 dem 20. April 2026 (einschließlich) bis to and including the First Reset Date or zum Ersten Zinsanpassungstag with effect as of any Interest Payment (einschließlich) oder mit Wirkung zu Date thereafter. In the case such notice is jedem nachfolgenden Zinszahlungstag given, the Issuer will redeem the zurückzuzahlen. Im Falle einer solchen remaining Notes at the Principal Amount Erklärung hat die Emittentin die Schuld- plus any accrued and unpaid interest on verschreibungen am festgelegten the Notes to but excluding the date of Rückzahlungstermin zum Nennbetrag redemption and, for the avoidance of zuzüglich der bis zum Tag der doubt, any Deferred Interest Payments Rückzahlung in Bezug auf die Schuld- payable pursuant to § 4(3) on the verschreibungen aufgelaufenen, aber specified redemption date. noch nicht bezahlten Zinsen sowie, zur Klarstellung, sämtlicher gemäß § 4(3) fälligen Aufgeschobenen Zinszahlungen zurückzuzahlen.
(b) Rückzahlung nach Wahl der Emittentin (b) Redemption at the Option of the Issuer at zum Make-whole-Betrag. Die the Make-whole Amount. The Issuer Emittentin ist berechtigt, durch may, upon giving notice in accordance Erklärung gemäß § 6(6) die Schuldver- with § 6(6), call the Notes for schreibungen (insgesamt und nicht nur redemption (in whole but not in part) teilweise) mit Wirkung zu jedem Tag bis with effect as of any date prior to but zu dem 20. April 2026 (ausschließlich) excluding 20 April 2026. In the case zurückzuzahlen. Im Falle einer solchen such notice is given, the Issuer will
73 Erklärung hat die Emittentin die Schuld- redeem the remaining Notes at the verschreibungen am festgelegten Make-whole Amount plus any accrued Rückzahlungstermin zum Make-whole- and unpaid interest on the Notes to but Betrag zuzüglich der bis zum Tag der excluding the date of redemption and, Rückzahlung in Bezug auf die Schuld- for the avoidance of doubt, any Deferred verschreibungen aufgelaufenen, aber Interest Payments payable pursuant to noch nicht bezahlten Zinsen sowie, zur § 4(3) on the specified redemption date. Klarstellung, sämtlicher gemäß § 4(3) fälligen Aufgeschobenen Zinszahlungen zurückzuzahlen.
Der "Make-whole-Betrag" (welcher The "Make-whole Amount" (to be den Anleihegläubigern gemäß § 13 und notified to the Noteholders in der Hauptzahlstelle mitzuteilen ist) einer accordance with § 13 and to the Schuldverschreibung entspricht dem Principal Paying Agent) of a Note shall höheren der folgenden Beträge: be the higher of:
(i) dem Nennbetrag; oder (i) the Principal Amount; or
(ii) dem Abgezinsten Marktwert. (ii) the Present Value.
Der Make-whole-Betrag wird von der The Make-whole Amount shall be Make-whole-Berechnungsstelle, welche calculated by the Make-whole nach § 6(6) von der Emittentin Calculation Agent which shall be set bekanntzumachen ist, berechnet. forth in accordance with § 6(6).
Der "Abgezinste Marktwert" ist die The "Present Value" will be the sum of Summe aus
(i) dem vom Ersten (i) the Principal Amount per Note Zinsanpassungstag auf den für discounted from the First Reset die Rückzahlung festgelegten Date to the date fixed for Tag abgezinsten Nennbetrag je redemption; and Schuldverschreibung; und
(ii) den jeweils auf den für die (ii) the remaining interest payments Rückzahlung festgelegten Tag which would otherwise become abgezinsten Werten der due on each Interest Payment verbleibenden Zinszahlungen, Date falling after the date fixed die ansonsten an jedem for redemption to and including Zinszahlungstag nach dem für die the First Reset Date (excluding Rückzahlung festgelegten Tag any interest accrued to but bis zum Ersten excluding the date fixed for Zinsanpassungstag redemption), each discounted to (einschließlich) fällig werden the date fixed for redemption. würden (ausschließlich etwaiger, bis zum für die Rückzahlung festgelegten Tag (ausschließlich) aufgelaufener Zinsen).
Die Make-whole-Berechnungsstelle The Make-whole Calculation Agent will errechnet den Abgezinsten Marktwert calculate the Present Value in gemäß der Marktkonvention auf einer accordance with market convention on a Grundlage, die der Berechnung von basis which is consistent with the
74 Zinsen gemäß § 3 entspricht, wobei sie calculation of interest as set out in § 3, die Benchmark-Rendite zuzüglich using the Benchmark Yield plus 0.50 %. 0,50 % zugrunde legt.
Die "Benchmark-Rendite" bezeichnet The "Benchmark Yield" means the die am Rückzahlungs-Berechnungstag yield at the Redemption Calculation bestehende Rendite der entsprechenden Date of the corresponding euro Euro-Referenz-Anleihe der denominated benchmark debt security of Bundesrepublik Deutschland fällig am the Federal Republic of Germany due 15. Februar 2026 (ISIN: 15 February 2026 DE0001102390) abgelesen, oder wie (ISIN: DE0001102390), or as derived or von einer anderen, durch die Make- published by such other source as whole-Berechnungsstelle festgelegten, determined by the Make-whole Quelle hergeleitet oder veröffentlicht Calculation Agent, and if such yield is oder, sollte die Rendite zu diesem not available at that time, the Benchmark Zeitpunkt nicht verfügbar sein, Yield shall be the yield of a substitute bezeichnet die Benchmark-Rendite eine benchmark security chosen by the Make- ersetzende Referenzanleihe, die von der whole Calculation Agent, having a Make-whole-Berechnungsstelle maturity comparable to the remaining festgesetzt wird, mit einer Laufzeit, die term of the Note to the First Reset Date, mit der verbleibenden Restlaufzeit der and that would be used at the time of Schuldverschreibung bis zum Ersten selection and in accordance with Zinsanpassungstag vergleichbar ist, und customary financial practice in the die im Zeitpunkt der international debt capital markets, in Auswahlentscheidung und entsprechend pricing new issues of corporate debt der üblichen Finanzmarktpraxis in den securities of comparable maturity to the internationalen Anleihekapitalmärkten First Reset Date. zur Preisbestimmung bei Neuemissionen von Unternehmensanleihen mit einer bis zum Ersten Zinsanpassungstag der Schuldverschreibung vergleichbaren Laufzeit verwendet werden würde.
"Rückzahlungs-Berechnungstag" ist "Redemption Calculation Date" means der sechste Geschäftstag vor dem für die the sixth Business Day prior to the date Rückzahlung festgelegten Tag. fixed for redemption.
(4) Rückzahlung nach Eintritt eines Gross-up- (4) Redemption following a Gross-up Event, a Tax Ereignisses, eines Steuerereignisses, eines Event, an Accounting Event or a Rating Agency Rechnungslegungsereignisses oder eines Event or in case of minimal outstanding Ratingagenturereignisses oder bei geringem aggregate principal amount. ausstehenden Gesamtnennbetrag.
(a) Gross-up-Ereignis, geringer (a) Gross-up Event, minimal outstanding ausstehender Gesamtnennbetrag. aggregate principal amount.
Wenn If
(i) ein Gross-up-Ereignis eintritt; (i) a Gross-up Event occurs; or oder
(ii) die Emittentin, die Garantin oder (ii) the Issuer, the Guarantor or any eine Tochtergesellschaft Schuld- Subsidiary has purchased or
75 verschreibungen im Volumen redeemed Notes equal to or in von 75 % oder mehr des excess of 75 per cent. of the ursprünglich begebenen aggregate Principal Amount of Gesamtnennbetrages der Schuld- the Notes initially issued, verschreibungen erworben oder zurückgezahlt hat, dann ist die Emittentin berechtigt, durch the Issuer may, upon giving notice in Erklärung gemäß § 6(6) die Schuldver- accordance with § 6(6), call the Notes schreibungen (insgesamt und nicht nur for redemption (in whole but not in part) teilweise) jederzeit mit Wirkung zu dem at any time with effect as of the date in der Erklärung für die Rückzahlung fixed for redemption in the notice. In the festgelegten Tag zurückzuzahlen. Im case such notice is given, the Issuer will Falle einer solchen Erklärung hat die redeem the remaining Notes on the Emittentin die Schuldverschreibungen specified redemption date at the am festgelegten Rückzahlungstermin Principal Amount plus any accrued and zum Nennbetrag zuzüglich der bis zum unpaid interest on the Notes to but Tag der Rückzahlung in Bezug auf die excluding the date of redemption and, Schuldverschreibungen aufgelaufenen, for the avoidance of doubt, any Deferred aber noch nicht bezahlten Zinsen sowie, Interest Payments payable pursuant to zur Klarstellung, sämtlicher gemäß § 4(3). § 4(3) fälligen Aufgeschobenen Zinszahlungen zurückzuzahlen.
Ein "Gross-up-Ereignis" tritt ein, wenn A "Gross-up Event" will occur if on or der Emittentin oder der Garantin an oder after the date of issue of the Notes an nach dem Tag der Begebung der Schuld- opinion of a recognised law firm has verschreibungen ein Gutachten einer been delivered to the Issuer or the anerkannten Anwaltskanzlei vorliegt Guarantor (and the Issuer or the (und die Emittentin oder die Garantin Guarantor has provided the Paying der Zahlstelle eine Kopie davon gibt), Agent with a copy thereof) stating that aus dem hervorgeht, dass die Emittentin the Issuer or the Guarantor has or will oder die Garantin aufgrund einer an oder become obliged by a legislative body, a nach dem Tag der Begebung der Schuld- court or any authority to pay Additional verschreibungen in Kraft tretenden Amounts pursuant to § 8 as a result of Gesetzesänderung (oder einer an oder any change in or amendment to the laws nach dem Tag der Begebung der Schuld- (or any rules or regulations thereunder) verschreibungen in Kraft tretenden of the country in which the Issuer has its Änderung von darunter erlassenen domicile or tax residence, or the country Bestimmungen und Vorschriften) des in which the Guarantor has its domicile Landes, in dem die Emittentin ihren or tax residence or any of their respective Hauptsitz oder Steuersitz hat, oder des political subdivisions or taxing Landes, in dem die Garantin ihren authorities, or as a result of any change Hauptsitz oder Steuersitz hat, oder einer in, or amendment to, any official deren jeweiliger Gebietskörperschaften interpretation or application of those oder Behörden oder als Folge einer an laws or rules or regulations by any oder nach dem Tag der Begebung der legislative body, court, governmental Schuldverschreibungen in Kraft agency or regulatory authority tretenden Änderung der offiziellen (including the enactment of any Auslegung oder Anwendung dieser legislation and the publication of any Gesetze, Bestimmungen oder judicial decision or regulatory Vorschriften durch eine gesetzgebende determination), in each case with such Körperschaft, ein Gericht oder eine change or amendment becoming
76 Aufsichtsbehörde (einschließlich des effective on or after the date of issue of Erlasses von Gesetzen sowie der the Notes, and that obligation cannot be Bekanntmachung gerichtlicher oder avoided by the Issuer or the Guarantor aufsichtsrechtlicher Entscheidungen) taking such reasonable measures it verpflichtet ist oder verpflichtet sein (acting in good faith) deems appropriate. wird, zusätzliche Beträge gemäß § 8 zu zahlen und die Emittentin oder die Garantin diese Verpflichtung nicht abwenden kann, indem sie zumutbare Maßnahmen ergreift, die sie nach Treu und Glauben für angemessen hält.
Die Bekanntmachung der Rückzahlung No such notice of redemption following nach Eintritt eines Gross-up-Ereignisses the occurrence of a Gross-up Event may darf nicht früher als 90 Tage vor dem be given earlier than 90 days prior to the Tag erfolgen, an dem die Emittentin earliest date on which the Issuer would erstmals verpflichtet wäre, zusätzliche be for the first time obliged to pay the Beträge gemäß § 8 zu zahlen. Additional Amounts pursuant to § 8.
(b) Ratingagenturereignis, (b) Rating Agency Event, Accounting Event, Rechnungslegungsereignis, Tax Event. Steuerereignis.
Wenn If
(i) ein Ratingagenturereignis (i) a Rating Agency Event occurs; or eintritt; oder
(ii) ein Rechnungslegungsereignis (ii) an Accounting Event occurs; or eintritt; oder
(iii) ein Steuerereignis eintritt, (iii) a Tax Event occurs,
dann ist die Emittentin berechtigt, durch the Issuer may, upon giving notice in Erklärung gemäß § 6(6) die Schuldver- accordance with § 6(6), call the Notes schreibungen (insgesamt und nicht nur for redemption (in whole but not in part) teilweise) jederzeit mit Wirkung zu dem at any time with effect as of the date in der Erklärung für die Rückzahlung fixed for redemption in the notice. In the festgelegten Tag zurückzuzahlen. Im case such notice is given, the Issuer will Falle einer solchen Erklärung hat die redeem the remaining Notes on the Emittentin die Schuldverschreibungen specified redemption date (i) at 101 per am festgelegten Rückzahlungstermin cent. of the Principal Amount if the (i) zu 101 % des Nennbetrages, falls die redemption occurs prior to 20 April Rückzahlung vor dem 20. April 2026 2026 and (ii) at the Principal Amount if erfolgt, und (ii) zum Nennbetrag, falls the redemption occurs on or after die Rückzahlung an oder nach dem 20 April 2026, in each case plus any 20. April 2026 erfolgt, jeweils zuzüglich accrued and unpaid interest on the Notes der bis zum Tag der Rückzahlung in to but excluding the date of redemption Bezug auf die Schuldverschreibungen and, for the avoidance of doubt, any aufgelaufenen, aber noch nicht bezahlten Deferred Interest Payments payable Zinsen sowie, zur Klarstellung, pursuant to § 4(3). sämtlicher gemäß § 4(3) fälligen Auf-
77 geschobenen Zinszahlungen, zurückzuzahlen.
Ein "Ratingagenturereignis" tritt ein, A "Rating Agency Event" will occur if wenn entweder: either:
(x) eine Ratingagentur eine (x) any Rating Agency publishes any Änderung der Methodologie (wie Methodology Change (as defined nachstehend definiert) below), as a result of which a veröffentlicht, wodurch ein Loss in Equity Credit (as defined Verlust der Eigenkapitalan- below) for the Notes occurs; or rechnung (wie nachstehend definiert) der Schuldverschrei- bungen eintritt; oder
(y) eine Ratingagentur eine (y) any Rating Agency publishes any Änderung der Methodologie Methodology Change which veröffentlicht, die zu einem would have resulted in a Loss in Verlust der Eigenkapital- Equity Credit for the Notes had anrechnung der Schuldverschrei- the "equity credit" attributed to bungen geführt hätte, wenn sich the Notes not changed previously die den Schuldverschreibungen because the Notes had been zugeordnete "Eigenkapitalan- partially or fully refinanced; or rechnung" nicht bereits zuvor geändert hätte, weil die Schuld- verschreibungen bereits insge- samt oder teilweise refinanziert worden sind; oder
(z) die Garantin eine schriftliche (z) the Guarantor has received, and Bestätigung von einer has provided the Principal Paying Ratingagentur erhalten und diese Agent with a copy of, a written an die Hauptzahlstelle in Kopie confirmation from any Rating weitergegeben hat, welche Agency that due to a besagt, dass aufgrund einer Methodology Change a Loss in Änderung der Methodologie ein Equity Credit for the Notes has Verlust der occurred. Eigenkapitalanrechnung der Schuldverschreibungen eingetreten ist.
Die Emittentin informiert die The Issuer will inform the Noteholders Anleihegläubiger über das of such Rating Agency Event in the Ratingagenturereignis in der Mitteilung notice of redemption referred to above. der Rückzahlung (wie oben beschrieben).
Dabei gilt Folgendes: Where:
"Änderung der Methodologie" "Methodology Change" means any bezeichnet jede Ergänzung, Klarstellung amendment to, clarification of, or a oder Änderung in der Methodologie, die change in the methodology that beschreibt, inwieweit ein Wertpapier describes the extent to which a security insgesamt oder teilweise dem fully or partially resembles common
78 Eigenkapital ähnelt bzw. diesem equity (the "Methodology") or the entspricht (die "Methodologie") oder interpretation of the Methodology. der Interpretation der Methodologie.
"Ratingagentur" bezeichnet jeweils "Rating Agency" means each of Moody's und Fitch, wobei "Moody's" Moody's and Fitch, where "Moody's" die Moody's Deutschland GmbH oder means Moody's Deutschland GmbH or eine ihrer Nachfolgegesellschaften any of its successors, "Fitch" means bezeichnet, "Fitch" die Fitch Ratings Fitch Ratings Limited or any of its Limited oder eine ihrer successors, or any other rating agency of Nachfolgegesellschaften bezeichnet, international standing from which the oder eine andere durch die Emittentin Issuer and/or the Guarantor receives a oder die Garantin bezeichnete solicited rating, as specified from time to Ratingagentur mit internationaler time by the Issuer or the Guarantor and, Anerkennung, von der die Emittentin in each case their respective subsidiaries und/oder die Garantin ein beauftragtes or successors. Rating erhält, sowie jeweils ihre Tochter- oder Nachfolgegesellschaften.
Ein "Verlust der Eigenkapitalan- A "Loss in Equity Credit" occurs rechnung" tritt ein,
(x) wenn die Schuldverschreibungen (x) if the Notes are no longer eligible nicht länger ganz oder teilweise (in whole or in part) for the same in derselben oder einer höheren or a higher category of "equity Kategorie der "Eigenkapitalan- credit" (or such similar rechnung" (oder einer vergleich- nomenclature as may be used by baren Beschreibung, die von a Rating Agency from time to einer Ratingagentur von Zeit zur time to describe the degree to Zeit genutzt wird, um zu which the terms of an instrument beschreiben in wieweit die Be- are supportive of the Issuer's dingungen eines Instruments die senior obligations) assigned to vorrangigen Verbindlichkeiten the Notes on the date on which der Emittentin unterstützen) such Rating Agency assigned to zugeordnet sind wie an dem Tag, the Notes such category of an dem diese Ratingagentur die "equity credit" for the first time; Schuldverschreibungen erstmals or dieser Kategorie der "Eigen- kapitalanrechnung" zugeordnet hat; oder
(y) wenn die Zeitspanne, während (y) if the period of time during which der eine Ratingagentur die a Rating Agency attributes to the Schuldverschreibungen einer Notes a particular category of bestimmten Kategorie der "Ei- "equity credit" would be genkapitalanrechnung" zuordnet, shortened as compared to the verkürzt wird gegenüber der period of time for which such Zeitspanne, für welche diese Rating Agency did attribute to the Ratingagentur die Schuldver- Notes that category of "equity schreibungen dieser Kategorie credit" on the date on which such der "Eigenkapitalanrechnung" an Rating Agency attributed to the dem Tag zugeordnet hat, an dem diese Ratingagentur die Schuld-
79 verschreibungen erstmals dieser Notes such category of "equity Kategorie der "Eigenkapitalan- credit" for the first time. rechnung" zugeordnet hat.
Ein "Rechnungslegungsereignis" liegt An "Accounting Event" will occur if a vor, wenn eine anerkannte Wirtschafts- recognised accountancy firm, acting prüfungsgesellschaft, die im Auftrag der upon instructions of the Issuer or the Emittentin oder Garantin handelt, der Guarantor, has delivered an opinion to Emittentin oder der Garantin ein the Issuer or the Guarantor, stating that Gutachten übermittelt, wonach aufgrund as a result of a change in accounting einer Änderung der Rechnungs- principles (or the application thereof) legungsgrundsätze oder deren (the "Accounting Change") which has Anwendung (die "Rechnungslegungs- been officially adopted on or after the änderung"), die am oder nach dem Tag date of issue of the Notes (such date, the der Begebung der Schuldverschreibun- "Change Date") the funds raised gen offiziell übernommen worden ist through the issuance of the Notes must (der Tag der Übernahme der Rech- not or must no longer be recorded as nungslegungsänderung, nachstehend der "equity" pursuant to the International "Änderungstag") die durch die Financial Reporting Standards ("IFRS") Ausgabe der Schuldverschreibungen or any other national or international beschafften Gelder nicht oder nicht mehr accounting standards that may replace als "Eigenkapital" gemäß den IFRS for the purposes of drawing up the International Financial Reporting consolidated financial statements of the Standards ("IFRS") bzw. anderen Guarantor. nationalen oder internationalen Rechnungslegungsstandards, die die Garantin für die Erstellung ihrer konsolidierten Abschlüsse anstelle der IFRS anwenden kann, ausgewiesen werden dürfen.
Der Zeitraum, in dem die Emittentin die The period during which the Issuer may Rückzahlung der Schuldverschreibun- notify the redemption of the Notes as a gen infolge des Eintretens eines result of the occurrence of an Rechnungslegungsereignisses mitteilen Accounting Event shall start on the kann, beginnt an dem Änderungstag. Zur Change Date. For the avoidance of Klarstellung, diese Frist umfasst jede doubt, such period shall include any Übergangszeit zwischen dem Tag, an transitional period between the date on dem die Rechnungslegungsänderung which the Accounting Change is offiziell übernommen wird, und dem officially published and the date on Tag, an dem sie in Kraft tritt. which it comes into effect.
Ein "Steuerereignis" liegt vor, wenn an A "Tax Event" will occur if on or after oder nach dem Tag der Begebung der the date of issue of the Notes an opinion Schuldverschreibungen der Emittentin of a recognised law firm has been oder der Garantin ein Gutachten einer delivered to the Issuer or the Guarantor anerkannten Anwaltskanzlei vorliegt (and the Issuer or the Guarantor has (und die Emittentin oder die Garantin provided the Paying Agent with a copy der Zahlstelle eine Kopie davon gibt), thereof) stating that, as a result of any aus dem hervorgeht, dass aufgrund einer change in, or amendment to, the laws (or an oder nach dem Tag der Begebung der any rules or regulations thereunder) of Schuldverschreibungen in Kraft the country in which the Issuer has its tretenden Gesetzesänderung (oder einer domicile or tax residence, or the country
80 an oder nach dem Tag der Begebung der in which the Guarantor has its domicile Schuldverschreibungen in Kraft or tax residence or any of their respective tretenden Änderung von darunter political subdivisions or taxing erlassenen Bestimmungen und authorities, or as a result of any change Vorschriften) des Landes, in dem die in, or amendment to, any official Emittentin ihren Hauptsitz oder interpretation or application of any such Steuersitz hat oder des Landes, in dem laws, rules or regulations by any die Garantin ihren Hauptsitz oder legislative body, court, governmental Steuersitz hat, oder einer deren agency or regulatory authority jeweiliger Gebietskörperschaften oder (including the enactment of any Steuerbehörden, oder als Folge einer an legislation and the publication of any oder nach dem Tag der Begebung der judicial decision or regulatory Schuldverschreibungen in Kraft determination), in each case with such tretenden Änderung der offiziellen change or amendment becoming Auslegung oder Anwendung solcher effective on or after the date of issue of Gesetze, Bestimmungen oder the Notes, the interest expense in respect Vorschriften durch eine gesetzgebende of the Notes is no longer, or will no Körperschaft, ein Gericht, eine longer be, fully deductible by the Issuer Regierungsstelle oder eine or the Guarantor for income tax Aufsichtsbehörde (einschließlich des purposes, and that risk cannot be avoided Erlasses von Gesetzen sowie der by the Issuer or the Guarantor taking Bekanntmachung gerichtlicher oder such reasonable measures as it (acting in aufsichtsrechtlicher Entscheidungen), good faith) deems appropriate. der Zinsaufwand aus den Schuldver- schreibungen von der Emittentin oder der Garantin nicht mehr für Zwecke der Ertragsteuer voll abzugsfähig ist bzw. nicht mehr voll abzugsfähig sein wird und die Emittentin oder die Garantin dieses Risiko nicht abwenden kann, indem sie zumutbare Maßnahmen ergreift, die sie nach Treu und Glauben für angemessen hält.
(5) Kündigungsrecht der Emittentin nach Eintritt (5) Issuer Call Right following a Change of Control eines Kontrollwechselereignisses. Event.
(a) Wenn ein Kontrollwechsel-Ereignis (a) If a Change of Control Event (as defined (wie in § 6(5)(c) definiert) eintritt, hat in § 6(5)(c)) occurs, the Issuer will, as die Emittentin sobald wie möglich, soon as practicable, after becoming nachdem sie Kenntnis davon erhalten aware thereof fix the Change of Control hat, den Tag, an dem die Transaktion, Effective Date (as defined in § 6(5)(c)) die den Kontrollwechsel bewirkt, and give notice in accordance with § 13 vollzogen worden ist (der "Stichtag"), of the date on which the transaction that den Kontrollwechsel-Stichtag (wie in constitutes the Change of Control has § 6(5)(c) definiert) zu bestimmen und taken effect (the "Record Date"), the das Kontrollwechsel-Ereignis und den Change of Control Event and the Change Kontrollwechsel-Stichtag gemäß § 13 of Control Effective Date (the "Change bekannt zu machen (die of Control Notice"). "Kontrollwechsel-Mitteilung").
81 (b) Wenn ein Kontrollwechsel-Ereignis (b) If a Change of Control Event occurs, the eintritt, ist die Emittentin berechtigt, die Issuer may call and redeem the Notes (in Schuldverschreibungen (insgesamt, whole but not in part) with effect as of jedoch nicht teilweise) durch Erklärung the Change of Control Effective Date gemäß dem nachstehenden Absatz mit upon giving notice in accordance with Wirkung zu dem Kontrollwechsel- the following paragraph. Stichtag zu kündigen und zurückzuzahlen.
Die Emittentin kann ihr Recht zur The Issuer may give notice to the Rückzahlung gemäß diesem § 6(5)(b) Noteholders within not more than five durch eine Bekanntmachung an die Business Days after publication of the Anleihegläubiger gemäß § 13 innerhalb Change of Control Notice in accordance einer Frist von nicht mehr als fünf with § 13 of a redemption pursuant to Geschäftstagen nach Bekanntmachung this § 6(5)(b). Such notice may be given der Kontrollwechsel-Mitteilung simultaneously with the Change of ausüben. Diese Bekanntmachung kann Control Notice. auch zeitgleich mit der Kontrollwechsel- Mitteilung erfolgen.
Im Falle einer solchen Erklärung ist die In this case the Issuer shall redeem on Emittentin verpflichtet, die Schuldver- the Change of Control Effective Date schreibungen am Kontrollwechsel- each Note at its Principal Amount plus Stichtag zum Nennbetrag zuzüglich der any accrued and unpaid interest on the bis zum Kontrollwechsel-Stichtag Notes to but excluding the Change of (ausschließlich) in Bezug auf die Control Effective Date and, for the Schuldverschreibungen aufgelaufenen, avoidance of doubt, any Deferred aber noch nicht bezahlten Zinsen sowie, Interest Payments payable pursuant to zur Klarstellung, sämtlicher gemäß § 4(3) on the specified redemption date. § 4(3) fälligen Aufgeschobenen Zinszahlungen zurückzuzahlen.
(c) Ein "Kontrollwechsel-Ereignis" gilt (c) A "Change of Control Event" shall be jedes Mal als eingetreten, wenn deemed to have occurred at each time if
(i) nach dem Begebungstag der (i) a Change of Control (as defined Schuldverschreibungen ein below) occurs after the issue date Kontrollwechsel (wie of the Notes; and nachstehend definiert) eingetreten ist; und
(ii) ein Negatives Ratingereignis (ii) a Negative Rating Event (as (wie in § 6(5)(d) definiert) defined in § 6(5)(d) occurs after eintritt, und zwar nach Eintritt the occurrence and, in the cases des Kontrollwechsels bzw. in den of § 6(5)(d)(i)(B) and Fällen gemäß § 6(5)(d)(i)(B) und § 6(5)(d)(i)(C) below, as a result § 6(5)(d)(i)(C), aufgrund des of the Change of Control. Kontrollwechsels.
Dabei gilt Folgendes: Where
"Kontrollwechsel" bedeutet, dass "Change of Control" means
82 (i) an oder nach dem Begebungstag (i) on or after the issue date of the der Schuldverschreibungen, aber Notes but prior to the date of a vor dem Zeitpunkt eines Qualified IPO, BASF SE, Qualifizierten IPO die BASF SE, Ludwigshafen am Rhein, Ludwigshafen am Rhein, Germany ("BASF") and Deutschland ("BASF") und die Letterone Holdings S.A., Letterone Holdings S.A., Luxembourg ("Letterone Luxemburg ("Letterone Holdings") (whether directly or Holdings") (ob unmittelbar oder indirectly through any person) mittelbar über irgendeine Person) together cease to hold zusammen nicht mehr beneficially a minimum of 51 per wirtschaftliche Eigentümer von cent. of the ordinary company mindestens 51 % der shares or shares of the Guarantor, Stammgeschäftsanteile bzw. provided that no Change of Stammaktien der Garantin sind; Control shall occur if BASF dies gilt mit der Maßgabe, dass individually holds a minimum of kein Kontrollwechsel eintritt, 51 per cent. of the ordinary wenn BASF alleine mindestens company shares or shares in the 51 % der Stammgeschäftsanteile Guarantor; or bzw. Stammaktien der Garantin hält; oder
(ii) zum oder nach dem Zeitpunkt (ii) on or after the date of a Qualified eines Qualifizierten IPO ein IPO, the occurrence of any event Ereignis eintritt, durch das eine pursuant to which one or more oder mehrere Person(en) (außer person(s) (other than any listed einer börsennotierten Holding Company of the Holdinggesellschaft der Garantin Guarantor and other than BASF und außer BASF (oder eines ihrer (or any of its subsidiaries)) acting Tochterunternehmen)), die either individually or acting in entweder alleine oder gemeinsam concert within the meaning of im Sinne von § 2 Absatz 5 § 2(5) of the German Securities WpÜG handeln, unmittelbar oder Acquisition and Take Over Act mittelbar einen (Wertpapiererwerbs- und Stimmrechtsanteil von mehr als Übernahmegesetz – WpÜG) 50 % an der Garantin erwerben, acquire(s) directly or indirectly wobei der Stimmrechtsanteil more than 50 per cent. of the nach § 34 Absatz 1 und 2 WpHG voting rights of the Guarantor, berechnet wird. provided that the share of voting rights shall be calculated pursuant to § 34 paragraphs (l) and (2) WpHG.
"Kontrollwechsel-Stichtag" bezeichnet "Change of Control Effective Date" folgenden von der Emittentin in der means the following date fixed by the Kontrollwechsel-Mitteilung Issuer in the Change of Control Notice: festgelegten Tag:
(i) Falls zum betreffenden Zeitpunkt (i) If at the relevant time any senior nicht-nachrangige debt instruments of the Issuer, the Fremdkapitalinstrumente der Guarantor or another entity Emittentin, der Garantin oder benefitting from a guarantee of
83 einer anderen Gesellschaft unter the Issuer or the Guarantor are einer Garantie der Emittentin outstanding, "Change of oder der Garantin ausstehen, ist Control Effective Date" means "Kontrollwechsel-Stichtag" (x) the fifth Business Day (x) frühestens der fünfte following the date on which such Geschäftstag nach dem Tag, an securities may become payable dem solche Wertpapiere due to put notices of the holders aufgrund einer Kündigung der of such securities in respect of the Inhaber dieser Wertpapiere same Change of Control Event wegen des gleichen (or a similar concept) at the Kontrollwechsel-Ereignisses earliest but in any event (y) the (oder eines vergleichbaren 60th day following the Konzepts) fällig werden können, publication of the Change of aber in jedem Fall (y) spätestens Control Notice at the latest. der 60. Tag nach Veröffentlichung der Kontrollwechsel-Mitteilung.
(ii) Falls zum betreffenden Zeitpunkt (ii) If at the relevant time no senior keine nicht-nachrangigen debt instruments of the Issuer, the Fremdkapitalinstrumente der Guarantor or another entity Emittentin, der Garantin oder benefitting from a guarantee of einer anderen Gesellschaft unter the Issuer or the Guarantor are einer Garantie der Emittentin outstanding, "Change of oder der Garantin ausstehen, ist Control Effective Date" means a "Kontrollwechsel-Stichtag" ein Business Day which falls not less Geschäftstag, der nicht weniger than 20 nor more than 60 days als 20 und nicht mehr als 60 Tage after publication of the Change of nach Bekanntmachung der Control Notice. Kontrollwechsel-Mitteilung liegen darf.
"Kontrollwechselzeitraum" bezeichnet "Change of Control Period" means the den Zeitraum von 120 Tagen ab dem period ending 120 days from but Stichtag (ausschließlich). excluding the Record Date.
"Holdinggesellschaft" bedeutet in "Holding Company" means in relation Bezug auf eine Gesellschaft oder ein to a company or corporation, any other Unternehmen, jede andere Gesellschaft company or corporation in respect of oder jedes andere Unternehmen, dessen which it is a subsidiary. Tochtergesellschaft es ist.
"Qualifizierter IPO" bezeichnet eine "Qualified IPO" means an initial listing erstmalige Börsenzulassung der of all or part of the share capital of the Gesamtheit oder eines Teils der Aktien Guarantor or any Holding Company of der Garantin oder einer Hol- the Guarantor (whose only principal dinggesellschaft der Garantin (deren asset is the direct or indirect ownership einziger wesentliche in the Guarantor) on any internationally Vermögensgegenstand die unmittelbare recognised stock exchange or any other oder mittelbare Beteiligung an der Ga- issue by way of flotation or public rantin ist) an einer international offering or any equivalent circumstances anerkannten Wertpapierbörse oder eine in relation to the Guarantor or any andere Emission im Wege eines Holding Company of the Guarantor.
84 Börsengangs oder eines öffentlichen Angebots oder unter entsprechenden Umständen in Bezug auf die Garantin oder eine Holdinggesellschaft der Garantin.
"WpHG" bezeichnet das Wertpapier- "WpHG" means the German Securities handelsgesetz in seiner jeweils gültigen Trading Act (Wertpapierhandelsgesetz – Fassung. WpHG) as amended from time to time.
(d) Ein "Negatives Ratingereignis" gilt im (d) A "Negative Rating Event" shall be Hinblick auf einen zuvor eingetretenen deemed to have occurred in respect of a Kontrollwechsel als eingetreten, wenn Change of Control if within the Change innerhalb des Kontrollwechselzeitraums of Control Period (as defined in (wie in § 6(5)(c) definiert): § 6(5)(c)):
(i) (i)
(A) für den Fall, dass die (A) in case, on the Record nichtnachrangigen Date, no credit rating from Fremdkapitalinstrumente any Rating Agency (as der Garantin am Stichtag defined below) is assigned über kein Rating von einer to the senior debt Ratingagentur (wie instruments of the nachstehend definiert) Guarantor and no single verfügen, keine einzige Rating Agency assigns an Ratingagentur ein investment grade credit Investment Grade Rating rating (i.e. at least "BBB-" (d.h. mindestens "BBB-" by Fitch or "Baa3" by durch Fitch oder "Baa3" Moody's or such other durch Moody's oder ein equivalent rating as may korrespondierendes Ra- be assigned by any other ting einer anderen Rating- Rating Agency) to the agentur) für die nicht- senior debt instruments of nachrangigen Fremd- the Guarantor; or kapitalinstrumente der Garantin vergibt; oder
(B) für den Fall, dass die (B) in case, on the Record nichtnachrangigen Date, no investment grade Fremdkapitalinstrumente credit rating is assigned to der Garantin am Stichtag the senior debt zwar über kein Investment instruments of the Grade Rating aber über Guarantor but one or more ein oder mehrere (mit non-investment grade Zustimmung der credit ratings ("BB+" by Emittentin erteilte) Non- Fitch or "Ba1" by Investment Grade Ratings Moody's or such other ("BB+" durch Fitch oder equivalent rating as may "Ba1" durch Moody's be assigned by any other oder ein Rating Agency, or korrespondierendes equivalent, or worse) are Rating einer anderen assigned to the senior debt
85 Ratingagentur oder instruments of the gleichwertig oder Guarantor (with the schlechter) verfügen, eine consent of the Issuer), any der Ratingagenturen ihr of the Rating Agencies jeweiliges Rating um downgrades its respective einen oder mehrere credit rating by one or Punkte (zur Erläuterung: more notches (for "BB+" nach "BB" bzw. illustration, "BB+" to "Ba1" nach "Ba2" "BB" or "Ba1" to "Ba2" entspricht einem Punkt) being one notch), absenkt, wobei kein provided that no Negative Negatives Ratingereignis Rating Event occurs if eintritt, wenn dieses such credit rating is Rating anschließend subsequently and during während des the Change of Control Kontrollwechselzeitraum Period reinstated to its s durch diese earlier or a better credit Ratingagentur auf das rating by such Rating ursprüngliche oder ein Agency ; or besseres Rating angehoben wird; oder
(C) für den Fall, dass die (C) in case, on the Record nichtnachrangigen Date, one or more Fremdkapitalinstrumente investment grade credit der Garantin am Stichtag ratings are assigned to the über ein oder mehrere senior debt instruments of Investment Grade Ratings the Guarantor, any of the verfügen, eine der Rating- Rating Agencies (i) agenturen ihr Investment withdraws or (ii) Grade Rating (d.h. downgrades such mindestens "BBB-" durch investment grade credit Fitch oder "Baa3" durch rating (i.e. at least "BBB-" Moody's oder ein korres- by Fitch or "Baa3" by pondierendes Rating einer Moody's or such other anderen Ratingagentur) equivalent rating as may (i) zurückzieht oder be assigned by any other (ii) von einem Investment Rating Agency) to a non- Grade Rating auf ein non- investment grade credit Investment Grade Rating rating ("BB+" by Fitch or ("BB+" durch Fitch oder "Ba1" by Moody's or such "Ba1" durch Moody's other equivalent rating as oder ein may be assigned by any korrespondierendes other Rating Agency, or Rating einer anderen equivalent, or worse), Ratingagentur oder provided that no Negative gleichwertig oder Rating Event occurs if schlechter) herabstuft, such credit rating is wobei kein Negatives subsequently reinstated Ratingereignis eintritt, and during the Change of wenn dieses Rating Control Period to its anschließend während des earlier or a better
86 Kontrollwechselzeitraum investment grade credit s durch die jeweilige rating by such Rating Ratingagentur auf das Agency or (in the case of ursprüngliche oder ein a withdrawal) replaced by besseres Investment an investment grade credit Grade Rating angehoben rating from any other wird oder (im Falle einer Rating Agency; and Zurückziehung) das betreffende Rating durch das Investment Grade Rating einer anderen Ratingagentur ersetzt wird; und
(ii) die jeweilige Ratingagentur bei (ii) in making any decision to ihrer Entscheidung zur downgrade or withdraw a credit Herabstufung oder Zurücknahme rating pursuant to § 6(5)(d)(i)(B) eines Kreditratings gemäß and § 6(5)(d)(i)(C) above, the § 6(5)(d)(i)(B) und relevant Rating Agency announ- § 6(5)(d)(i)(C) öffentlich bekannt ces publicly or confirms in gibt oder schriftlich bestätigt, writing that such decision(s) dass diese Entscheidung(en) ganz resulted, in whole or in part, from oder teilweise aufgrund des the occurrence of the Change of Eintritts des Kontrollwechsels Control. erfolgte(n).
Falls die nicht-nachrangigen Fremd- If on the Record Date the senior debt kapitalinstrumente der Garantin zum instruments of the Guarantor carry a Stichtag über ein Rating von mehr als rating from more than one Rating einer Rating Agentur verfügen, von Agency, at least one of which is denen mindestens eines ein Investment investment grade, then § 6(5)(d)(i)(C) Grade Rating ist, findet § 6(5)(d)(i)(C) will apply. Anwendung.
Falls sich die von Moody's oder Fitch If the rating designations employed by verwendeten Rating-Kategorien any of Moody's or Fitch are changed gegenüber denen, die in § 6(5)(d) from those which are described in beschrieben werden, ändern sollten, § 6(5)(d) above, the Issuer shall wird die Emittentin diejenigen Rating- determine the rating designations of Kategorien von Moody's bzw. Fitch Moody's or Fitch (as appropriate) as are bestimmen, die den früheren Rating- most equivalent to the prior rating Kategorien von Moody's bzw. Fitch designations of Moody's or Fitch and möglichst nahekommen. § 6(5)(d) ist § 6(5)(d) shall be construed accordingly. dann entsprechend auszulegen.
(6) Bekanntmachung der Rückzahlung. Die (6) Notification of Redemption. The Issuer will Emittentin kann ein Recht zur Rückzahlung give not less than 15 nor more than 60 days' gemäß § 6(3) und (4) durch eine notice to the Noteholders in accordance with Bekanntmachung an die Anleihegläubiger § 13 of any redemption pursuant to § 6(3) and gemäß § 13 unter Einhaltung einer Frist von (4). In the case of § 6(3)(b) such notice will set nicht weniger als 15 und nicht mehr als 60 forth the name and address of the institution Tagen ausüben. Die Bekanntmachung hat in appointed by the Issuer as Make-whole dem Fall von § 6(3)(b) den Namen und die Calculation Agent and in the cases of § 6(4)
87 Geschäftsstelle der Institution, welche durch die such notice will set forth the underlying facts of Emittentin als Make-whole-Berechnungsstelle the Issuer's right to redemption and specify the ernannt wurde, bzw. in den Fällen des § 6(4) date fixed for redemption. diejenigen Tatsachen zu enthalten, auf welche die Emittentin ihr Rückzahlungsrecht stützt, und den für die Rückzahlung festgelegten Tag bezeichnen.
§ 7 § 7 ZAHLSTELLEN UND BERECHNUNGSSTELLE PAYING AND CALCULATION AGENT
(1) Bestellung. Die Emittentin hat Citibank Europe (1) Appointment. The Issuer has appointed PLC als Hauptzahlstelle in Bezug auf die Citibank Europe PLC as principal paying agent Schuldverschreibungen (die "Hauptzahlstelle" with respect to the Notes (the "Principal und gemeinsam mit jeder etwaigen von der Paying Agent" and, together with any Emittentin nach § 7(2) bestellten zusätzlichen additional paying agent appointed by the Issuer Zahlstelle, die "Zahlstellen") bestellt. in accordance with § 7(2), the "Paying Agents").
Die Emittentin hat Citibank Europe PLC als Be- The Issuer has appointed Citibank Europe PLC rechnungsstelle in Bezug auf die Schuldver- as calculation agent with respect to the Notes schreibungen (die "Berechnungsstelle" und, (the "Calculation Agent" and, together with the gemeinsam mit den Zahlstellen, die Paying Agents, the "Agents"). "Verwaltungsstellen") bestellt.
Die Geschäftsräume der Citibank Europe PLC The address of the specified offices of Citibank befinden sich unter der folgenden Adresse: Europe PLC is:
Citibank Europe PLC Citibank Europe PLC 1 North Wall Quay 1 North Wall Quay Dublin 1 Dublin 1 Ireland Ireland
(2) Änderung oder Beendigung der Bestel- (2) Variation or Termination of Appointment. The lung. Die Emittentin behält sich das Recht vor, Issuer reserves the right at any time to vary or jederzeit die Ernennung einer Zahlstelle oder terminate the appointment of any Paying Agent der Berechnungsstelle zu verändern oder zu or the Calculation Agent and to appoint beenden und Nachfolger- bzw. zusätzliche successor or additional Paying Agents or a Zahlstellen oder eine Nachfolger-Berechnungs- successor Calculation Agent. Notice of any stelle zu ernennen. Den Anleihegläubigern change in the Paying Agents or the Calculation werden Änderungen in Bezug auf die Agent or in the specified office of any Paying Zahlstellen oder die Berechnungsstelle und Agent or the Calculation Agent will promptly deren angegebene Geschäftsstellen umgehend be given to the Noteholders pursuant to § 13. gemäß § 13 bekannt gemacht.
(3) Status der beauftragten Stellen. Die Zahl- (3) Status of the Agents. The Paying Agents and stellen und die Berechnungsstelle handeln Calculation Agent act solely as agents of the ausschließlich als Vertreter der Emittentin und Issuer and do not assume any obligations übernehmen keine Verpflichtungen gegenüber towards or relationship of contract, agency or den Anleihegläubigern; es wird kein Vertrags-, trust for or with any of the Noteholders. The Auftrags- oder Treuhandverhältnis zwischen Paying Agents are exempt from the restrictions ihnen und den Anleihegläubigern begründet. of § 181 of the German Civil Code (Bürgerliches Gesetzbuch - BGB).
88 Die Zahlstellen sind von den Beschränkungen des § 181 BGB befreit.
(4) Unabhängiger Berater. Wenn die Emittentin (4) Independent Advisor. If the Issuer appoints an gemäß § 3(5)(a) einen Unabhängigen Berater Independent Advisor in accordance with bestellt, dann ist § 7(3) auf den Unabhängigen § 3(5)(a), § 7(3) shall apply mutatis mutandis to Berater entsprechend anzuwenden. the Independent Advisor.
(5) Make-whole-Berechnungsstelle. Wenn die (5) Make-whole Calculation Agent. If the Issuer Emittentin gemäß § 6(3)(b) eine Make-whole- appoints a Make-whole Calculation Agent in Berechnungsstelle bestellt, dann ist § 7(3) auf accordance with § 6(3)(b), § 7(3) shall apply die Make-whole-Berechnungsstelle mutatis mutandis to the Make-whole entsprechend anzuwenden. Calculation Agent.
§ 8 § 8 STEUERN TAXATION
Kapital und Zinsen werden von der Emittentin Principal and interest shall be payable by the oder der Garantin ohne Abzug oder Einbehalt Issuer or the Guarantor without deduction or gegenwärtiger oder zukünftiger Steuern, withholding for or on account of any present or Abgaben oder amtlicher Gebühren gleich future taxes, duties or governmental charges of welcher Art gezahlt, die von oder in dem Land, any nature whatsoever imposed, levied or in dem die Emittentin oder die Garantin ihren collected by or in or on behalf of the country in Hauptsitz oder Steuersitz hat, oder für dessen which the Issuer or the Guarantor has its Rechnung oder von oder für Rechnung einer domicile or tax residence or by or on behalf of dort zur Steuererhebung ermächtigten any political subdivision or authority therein Gebietskörperschaft oder Behörde auferlegt, having power to tax (hereinafter together the erhoben oder eingezogen werden (nachstehend "Withholding Taxes"), unless such deduction zusammen "Quellensteuern" genannt), es sei or withholding at source is required by law. If denn, ein solcher Abzug oder Einbehalt an der the Issuer or the Guarantor is required by law to Quelle ist gesetzlich vorgeschrieben. Sofern die make such withholding or deduction, it shall Emittentin oder die Garantin gesetzlich zu pay such additional amounts (the "Additional einem solchen Einbehalt oder Abzug Amounts") of principal and interest as may be verpflichtet ist, wird sie die zusätzlichen necessary in order that the net amounts received Beträge ("zusätzlichen Beträge") an Kapital by the Noteholder after such deduction or und Zinsen zahlen, die erforderlich sind, damit withholding at source equal the respective der dem Anleihegläubiger nach diesem Abzug amounts of principal and interest which would oder Einbehalt an der Quelle zufließende have been receivable had no such deduction or Nettobetrag jeweils den Beträgen an Kapital withholding been required. No such Additional und Zinsen entspricht, die ihm zustehen Amounts shall, however, be payable on account würden, wenn der Abzug oder Einbehalt nicht of any taxes, duties or governmental charges erforderlich wäre. Solche zusätzlichen Beträge which: sind jedoch nicht zahlbar aufgrund von Steuern, Abgaben oder amtlicher Gebühren, die
(a) auf andere Weise als durch Einbehalt (a) are payable otherwise than by oder Abzug von zahlbaren Beträgen zu withholding or deduction from amounts entrichten sind; oder payable; or
(b) wegen gegenwärtiger oder früherer (b) are payable by reason of the Noteholder persönlicher oder geschäftlicher having, or having had, some personal or Beziehungen des Anleihegläubigers zu business connection with the country in dem Land, in dem die Emittentin oder which the Issuer or the Guarantor has its
89 die Garantin ihren Hauptsitz oder domicile or tax residence, and not Steuersitz hat, zu zahlen sind, und nicht merely by reason of the fact that allein deshalb, weil Zahlungen auf die payments in respect of the Notes are, or Schuldverschreibungen aus Quellen in for purposes of taxation are deemed to dem Land, in dem die Emittentin oder be, derived from sources in, or are die Garantin ihren Hauptsitz oder secured in, the country where the Issuer Steuersitz hat, stammen (oder für or the Guarantor has its domicile or tax Zwecke der Besteuerung so behandelt residence; or werden) oder dort besichert sind; oder
(c) aufgrund (i) einer Richtlinie oder (c) are to be withheld or deducted pursuant Verordnung der Europäischen Union to (i) any European Union Directive or betreffend die Besteuerung von Regulation concerning the taxation of Zinserträgen oder (ii) einer interest income, or (ii) any international zwischenstaatlichen Vereinbarung, treaty, agreement or understanding eines zwischenstaatlichen Abkommens relating to such taxation and to which the oder einer zwischenstaatlichen Netherlands or the Federal Republic of Verständigung über deren Besteuerung, Germany or the European Union is a an der die Niederlande, die party, or (iii) any provision of law Bundesrepublik Deutschland oder die implementing, or complying with, or Europäische Union beteiligt ist, oder (iii) introduced to conform with, such einer gesetzlichen Vorschrift, die diese Directive, Regulation, treaty, agreement Richtlinie, Verordnung, Vereinbarung, or understanding; or Abkommen oder Verständigung umsetzt oder befolgt, abzuziehen oder einzubehalten sind; oder
(d) aufgrund des niederländischen (d) are payable by reason of the Dutch Quellensteuergesetzes 2021 (Wet Withholding Tax Act 2021 (Wet bronbelasting 2021) zahlbar sind. bronbelasting 2021).
Die Emittentin und die Garantin sind keinesfalls In any event, the Issuer and the Guarantor will verpflichtet, zusätzliche Beträge in Bezug auf have no obligation to pay additional amounts einen Einbehalt oder Abzug von Beträgen zu deducted or withheld by the Issuer, the relevant zahlen, die gemäß Sections 1471 bis 1474 des Paying Agent or any other party in relation to U.S. Internal Revenue Code (in der jeweils any withholding or deduction of any amounts geltenden Fassung oder gemäß required by the rules of U.S. Internal Revenue Nachfolgebestimmungen), gemäß Code Sections 1471 through 1474 (or any zwischenstaatlicher Abkommen, gemäß den in amended or successor provisions), pursuant to einer anderen Rechtsordnung in any inter-governmental agreement, or Zusammenhang mit diesen Bestimmungen implementing legislation adopted by another erlassenen Durchführungsvorschriften oder jurisdiction in connection with these provisions, gemäß mit dem Internal Revenue Service or pursuant to any agreement with the U.S. geschlossenen Verträgen von der Emittentin, Internal Revenue Service ("FATCA der jeweiligen Zahlstelle oder einem anderen Withholding") or indemnify any investor in Beteiligten abgezogen oder einbehalten wurden relation to any FATCA Withholding. ("FATCA-Steuerabzug") oder Anleger in Bezug auf einen FATCA-Steuerabzug schadlos zu halten.
"Vereinigte Staaten" bezeichnet die "United States" means the United States of Vereinigten Staaten von Amerika America (including the States thereof and the (einschließlich deren Bundesstaaten und des District of Columbia) and its possessions
90 District of Columbia) sowie deren Territorien (including Puerto Rico, the U.S. Virgin Islands, (einschließlich Puerto Rico, der U.S. Virgin Guam, American Samoa, Wake Island and Islands, Guam, American Samoa, Wake Island Northern Mariana Islands). und Northern Mariana Islands).
§ 9 § 9 VORLEGUNGSFRIST PRESENTATION PERIOD
Die in § 801 Absatz 1 Satz 1 BGB bestimmte The period for presentation of the Notes Vorlegungsfrist der Schuldverschreibungen provided in § 801 paragraph 1, sentence 1 of the wird auf zehn Jahre verkürzt. German Civil Code (Bürgerliches Gesetzbuch – BGB) will be reduced to 10 years.
§ 10 § 10 ERSETZUNG SUBSTITUTION
(1) Ersetzung. Die Emittentin ist jederzeit (1) Substitution. The Issuer may at any time, if no berechtigt, sofern sie sich nicht mit einer payment of principal or interest on any of the Zahlung von Kapital oder Zinsen auf die Notes is in default or deferred, without the Schuldverschreibungen in Verzug befindet oder consent of the Noteholders, substitute for the diese aufgeschoben hat, ohne Zustimmung der Issuer either the Guarantor or any other Anleihegläubiger, die Garantin oder eine andere company which is directly or indirectly Gesellschaft, die direkt oder indirekt von der controlled by the Guarantor as new issuer (the Garantin kontrolliert wird, als neue Emittentin "New Issuer") in respect of all obligations für alle sich aus oder im Zusammenhang mit arising under or in connection with the Notes den Schuldverschreibungen ergebenden with the effect of releasing the Issuer of all such Verpflichtungen mit schuldbefreiender obligations, if: Wirkung für die Emittentin an die Stelle der Emittentin zu setzen (die "Neue Emittentin"), sofern
(a) die Neue Emittentin sämtliche (a) the New Issuer validly assumes any and Verpflichtungen der Emittentin aus oder all obligations of the Issuer arising under im Zusammenhang mit den Schuldver- or in connection with the Notes and, if schreibungen rechtswirksam übernimmt service of process vis-à-vis the New und, sofern eine Zustellung an die Neue Issuer would have to be effected outside Emittentin außerhalb der the Federal Republic of Germany, Bundesrepublik Deutschland erfolgen appoints a process agent within the müsste, einen Zustel- Federal Republic of Germany; lungsbevollmächtigten in der Bundesrepublik Deutschland bestellt;
(b) die Neue Emittentin in der Lage ist, (b) the New Issuer is in the position to pay sämtliche zur Erfüllung der aufgrund der to the Clearing System or to the Principal Schuldverschreibungen bestehenden Paying Agent in Euro and without Zahlungsverpflichtungen erforderlichen deducting or withholding any taxes or Beträge in Euro an das Clearingsystem other duties of whatever nature imposed, oder die Hauptzahlstelle zu zahlen, und levied or deducted by the country (or zwar ohne Abzug oder Einbehalt von countries) in which the New Issuer has Steuern oder sonstigen Abgaben its domicile or tax residence all amounts jedweder Art, die von dem Land (oder required for the performance of the den Ländern), in dem (in denen) die Neue Emittentin ihren Sitz oder
91 Steuersitz hat, auferlegt, erhoben oder payment obligations arising from or in eingezogen werden; connection with the Notes;
(c) die Garantin (außer in dem Fall, dass sie (c) the Guarantor (except in the case that the selbst die Neue Emittentin ist) unbedingt Guarantor itself is the New Issuer) und unwiderruflich die Verpflichtungen irrevocably and unconditionally der Neuen Emittentin aus den Schuld- guarantees on a subordinated basis such verschreibungen auf nachrangiger Basis obligations of the New Issuer under the zu Bedingungen garantiert, die Notes on terms which ensure that each sicherstellen, dass jeder Noteholder will be put in an economic Anleihegläubiger wirtschaftlich position that is at least as favourable as mindestens so gestellt wird, wie er ohne that which would have existed if the die Ersetzung stehen würde (jede solche substitution had not taken place (each Erklärung eine "Ersetzungsgarantie"); such declaration a "Substitution Guarantee");
(d) die Neue Emittentin und die Emittentin (d) the New Issuer and the Issuer have alle etwaigen für die Ersetzung obtained any necessary governmental notwendigen Genehmigungen und and regulatory approvals and consents, if Zustimmungen von Regierungsstellen any, for such substitution, the Guarantor und Aufsichtsbehörden erhalten haben, (if it is not itself the New Issuer) has die Garantin (falls sie nicht selbst Neue obtained any necessary approvals and Emittentin ist) alle etwaigen für die consents, if any, for the giving of the Abgabe der Ersetzungsgarantie Substitution Guarantee, the New Issuer notwendigen Genehmigungen und has obtained any necessary Zustimmungen von Regierungsstellen governmental and regulatory approvals und Aufsichtsbehörden erhalten hat, die and consents, if any, for the performance Neue Emittentin alle etwaigen für die of its obligations under the Notes, all Erfüllung ihrer Verpflichtungen aus den such approvals and consents, if any, are Schuldverschreibungen notwendigen in full force and effect, and the Genehmigungen und Zustimmungen obligations assumed by the New Issuer von Regierungsstellen und under the Notes and the Substitution Aufsichtsbehörden erhalten hat, Guarantee given by the Guarantor (if it sämtliche dieser etwaigen is not itself the New Issuer) are each Genehmigungen und Zustimmungen valid and binding in accordance with weiterhin in vollem Umfang gültig und their respective terms and enforceable by wirksam sind, und die Verpflichtungen each Noteholder; der Neuen Emittentin aus den Schuldverschreibungen und die von der Garantin, (falls sie nicht selbst Neue Emittentin ist) begebene Ersetzungsgarantie jeweils gemäß ihren Bestimmungen wirksam und rechtsverbindlich und durch jeden Anleihegläubiger durchsetzbar sind;
(e) die Neue Emittentin sich verpflichtet, (e) the New Issuer undertakes to reimburse jedem Anleihegläubiger alle Steuern, any Noteholder for such taxes, fees or Gebühren oder Abgaben zu erstatten, die duties which may be imposed upon such ihm infolge der Schuldübernahme durch Noteholder as a consequence of the die Neue Emittentin auferlegt werden, assumption of the Issuer's obligations by vorausgesetzt, dass sich die the New Issuer, provided that such
92 Verpflichtung auf Beträge beschränkt, undertaking shall be limited to amounts die der Anleihegläubiger ohne die that would not have been imposed upon Ersetzung der Emittentin nicht hätte the Noteholder had such substitution not tragen müssen; occurred;
(f) der Hauptzahlstelle bezüglich der (f) there shall have been delivered to the betroffenen Rechtsordnungen jeweils Principal Paying Agent for each ein Rechtsgutachten einer jurisdiction affected one opinion of a law Anwaltskanzlei vorgelegt wurde, das firm to the effect that § 10(1)(a) through bestätigt, dass die Bestimmungen in (e) above have been satisfied. § 10(1)(a) bis (e) erfüllt wurden
(2) Bezugnahmen. Im Fall einer Schuldner- (2) References. In the event of a substitution ersetzung gemäß § 10(1) gilt jede Bezugnahme pursuant to § 10(1), any reference in these in diesen Anleihebedingungen auf die Terms and Conditions to the Issuer will be a Emittentin als eine solche auf die Neue reference to the New Issuer and any reference Emittentin und jede Bezugnahme auf die to the Netherlands will be a reference to the Niederlande als eine solche auf den Staat (die New Issuer's country (countries) of domicile for Staaten), in welchem die Neue Emittentin tax purposes. steuerlich ansässig ist.
(3) Bekanntmachung und Wirksamwerden der (3) Notice and effectiveness of substitution. Notice Ersetzung. Die Ersetzung der Emittentin ist of any substitution of the Issuer shall be given gemäß § 13 bekanntzumachen. Mit der by notice in accordance with § 13. Upon such Bekanntmachung der Ersetzung wird die publication, the substitution shall become Ersetzung wirksam und die Emittentin und im effective, and the Issuer and in the event of a Fall einer wiederholten Anwendung dieses § 10 repeated application of this § 10, any previous jede frühere Neue Emittentin von ihren New Issuer shall be discharged from any and all sämtlichen Verpflichtungen aus den Schuldver- obligations under the Notes. In the case of such schreibungen frei. Im Fall einer solchen substitution, the stock exchange(s), if any, on Schuldnerersetzung wird (werden) die which the Notes are then listed will be notified. Wertpapierbörse(n) informiert, an der (denen) die Schuldverschreibungen dann notiert sind.
§ 11 § 11 WEITERE EMISSIONEN FURTHER ISSUES
Die Emittentin kann ohne Zustimmung der The Issuer may from time to time, without the Anleihegläubiger weitere Schuldverschreibun- consent of the Noteholders, create and issue gen begeben, die in jeder Hinsicht (mit further Notes of the series having the same Ausnahme der ersten Zinszahlung) die gleichen terms and conditions as the Notes in all respects Bedingungen wie die Schuldverschreibungen (except for the first payment of interest) so as to dieser Anleihe haben und die zusammen mit form a single series with the Notes of the series. den Schuldverschreibungen dieser Anleihe eine einzige Anleihe bilden.
§ 12 § 12 ÄNDERUNG DER ANLEIHEBEDINGUNGEN; AMENDMENTS TO THE TERMS AND GEMEINSAMER VERTRETER, ÄNDERUNG CONDITIONS; JOINT REPRESENTATIVE, DER GARANTIE AMENDMENTS TO THE GUARANTEE
(1) Änderung der Anleihebedingungen. Die (1) Amendment of the Terms and Conditions. The Emittentin kann die Anleihebedingungen mit Issuer may amend the Terms and Conditions
93 Zustimmung aufgrund Mehrheitsbeschlusses with the consent of a majority resolution of the der Anleihegläubiger nach Maßgabe der §§ 5 ff. Noteholders pursuant to §§ 5 et seq. of the SchVG ändern. Eine Änderung der German Act on Issues of Debt Securities Anleihebedingungen ohne Zustimmung der (Gesetz über Schuldverschreibungen aus Emittentin scheidet aus. Gesamtemissionen – SchVG) (the "SchVG"). There will be no amendment of the Terms and Conditions without the Issuer's consent.
Die Anleihegläubiger können insbesondere In particular, the Noteholders may consent to einer Änderung wesentlicher Inhalte der amendments which materially change the Anleihebedingungen, einschließlich der in § 5 substance of the Terms and Conditions, Absatz 3 SchVG vorgesehenen Maßnahmen including such measures as provided for under mit den in dem nachstehenden § 12(2) § 5(3) SchVG by resolutions passed by such genannten Mehrheiten zustimmen. Ein majority of the votes of the Noteholders as ordnungsgemäß gefasster Mehrheitsbeschluss stated under § 12(2) below. A duly passed ist für alle Anleihegläubiger verbindlich. majority resolution will be binding upon all Noteholders.
(2) Mehrheitserfordernisse. Vorbehaltlich des (2) Majority requirements. Except as provided by nachstehenden Satzes und der Erreichung der the following sentence and provided that the erforderlichen Beschlussfähigkeit, beschließen quorum requirements are being met, the die Anleihegläubiger mit der einfachen Noteholders may pass resolutions by simple Mehrheit der an der Abstimmung majority of the voting rights participating in the teilnehmenden Stimmrechte. Beschlüsse, durch vote. Resolutions which materially change the welche der wesentliche Inhalt der substance of the Terms and Conditions, in Anleihebedingungen, insbesondere in den particular in the cases of § 5(3) numbers 1 Fällen des § 5 Absatz 3 Nummer 1 bis 9 through 9 SchVG, may only be passed by a SchVG, geändert wird, bedürfen zu ihrer majority of at least 75 per cent. of the voting Wirksamkeit einer Mehrheit von mindestens rights participating in the vote (a "Qualified 75 % der an der Abstimmung teilnehmenden Majority"). The voting right is suspended as Stimmrechte (eine "Qualifizierte Mehrheit"). long as any Notes are attributable to the Issuer Das Stimmrecht ruht, solange die Schuldver- or any of its affiliates (within the meaning of schreibungen der Emittentin oder einem mit ihr § 271(2) of the German Commercial Code verbundenen Unternehmen (§ 271 Absatz 2 (Handelsgesetzbuch – HGB)) or are being held HGB) zustehen oder für Rechnung der for the account of the Issuer or any of its Emittentin oder eines mit ihr verbundenen affiliates. Unternehmens gehalten werden.
(3) Beschlüsse. Beschlüsse der Anleihegläubiger (3) Resolutions. Resolutions of the Noteholders werden entweder in einer will be made either in a Noteholders' meeting in Gläubigerversammlung nach § 12(3)(a) oder im accordance with § 12(3)(a) or by means of a Wege der Abstimmung ohne Versammlung vote without a meeting (Abstimmung ohne nach § 12(3)(b) getroffen, die von der Versammlung) in accordance with § 12(3)(b), in Emittentin oder einem gemeinsamen Vertreter, either case convened by the Issuer or a joint sofern vorhanden, einberufen wird. representative, if any. Pursuant to § 9(1) Anleihegläubiger, deren Schuldverschreibun- sentence 2 SchVG, Noteholders holding Notes gen zusammen 5 % des jeweils ausstehenden in the total amount of 5 per cent. of the Gesamtnennbetrags der Schuldverschreibungen outstanding Principal Amount of the Notes may erreichen, können gemäß § 9 Absatz 1 S. 2 in writing request to convene a Noteholders' SchVG schriftlich die Einberufung einer meeting or vote without a meeting for any of the Anleihegläubigerversammlung oder reasons permitted pursuant to § 9(1) sentence 2 Abstimmung ohne Versammlung mit einer SchVG.
94 gemäß § 9 Absatz 1 S. 2 SchVG zulässigen Begründung verlangen.
(a) Beschlüsse der Anleihegläubiger im (a) Resolutions of the Noteholders in a Rahmen einer Gläubigerversammlung Noteholders' meeting will be made in werden nach §§ 9 ff. SchVG getroffen. accordance with § 9 et seq. SchVG. The Die Einberufung der convening notice of a Noteholders' Gläubigerversammlung regelt die meeting will provide the further details weiteren Einzelheiten der relating to the resolutions and the voting Beschlussfassung und der Abstimmung. procedure. The subject matter of the vote Mit der Einberufung der as well as the proposed resolutions will Gläubigerversammlung werden in der be notified to Noteholders in the agenda Tagesordnung die of the meeting. Beschlussgegenstände sowie die Vorschläge zur Beschlussfassung den Anleihegläubigern bekannt gegeben.
(b) Beschlüsse der Anleihegläubiger im (b) Resolutions of the Noteholders by means Wege der Abstimmung ohne of a voting not requiring a physical Versammlung werden nach § 18 SchVG meeting (Abstimmung ohne getroffen. Die Aufforderung zur Versammlung) will be made in Stimmabgabe durch den accordance § 18 SchVG. The request for Abstimmungsleiter regelt die weiteren voting as submitted by the chairman Einzelheiten der Beschlussfassung und (Abstimmungsleiter) will provide the der Abstimmung. Mit der Aufforderung further details relating to the resolutions zur Stimmabgabe werden die and the voting procedure. The subject Beschlussgegenstände sowie die matter of the vote as well as the proposed Vorschläge zur Beschlussfassung den resolutions will be notified to Anleihegläubigern bekannt gegeben. Noteholders together with the request for voting.
(4) Zweite Gläubigerversammlung. Wird die (4) Second noteholders' meeting. If it is Beschlussfähigkeit bei der Abstimmung ohne ascertained that no quorum exists for the vote Versammlung nach § 12(3)(b) nicht festgestellt, without meeting pursuant to § 12(3)(b), the kann der Abstimmungsleiter eine chairman (Abstimmungsleiter) may convene a Gläubigerversammlung einberufen, welche als meeting, which shall be deemed to be a second zweite Gläubigerversammlung im Sinne des meeting within the meaning of § 15(3) § 15 Absatz 3 Satz 3 SchVG gilt. sentence 3 SchVG.
(5) Anmeldung. Die Stimmrechtsausübung ist von (5) Registration. The exercise of voting rights is einer vorherigen Anmeldung der subject to the registration of the Noteholders. Anleihegläubiger abhängig. Die Anmeldung The registration must be received at the address muss bis zum dritten Tag vor der stated in the request for voting no later than the Gläubigerversammlung im Falle einer third day prior to the meeting in the case of a Gläubigerversammlung (wie in § 12(3)(a) oder Noteholders' meeting (as described in § 12(4) beschrieben) bzw. vor dem Beginn des § 12(3)(a) or § 12(4)) or the beginning of the Abstimmungszeitraums im Falle einer voting period in the case of voting not requiring Abstimmung ohne Versammlung (wie in a physical meeting (as described in § 12(3)(b)), § 12(3)(b) beschrieben) unter der in der as the case may be. As part of the registration, Aufforderung zur Stimmabgabe angegebenen Noteholders must demonstrate their eligibility Anschrift zugehen. Zusammen mit der to participate in the vote by means of a special Anmeldung müssen Anleihegläubiger den confirmation of their respective Custodian in
95 Nachweis ihrer Berechtigung zur Teilnahme an text form and by submission of a blocking der Abstimmung durch eine besondere instruction by the Custodian stating that the Bescheinigung ihrer Depotbank in Textform relevant Notes are not transferable from and und die Vorlage eines Sperrvermerks der including the day such registration has been sent Depotbank erbringen, aus dem hervorgeht, dass until and including the stated end of the meeting die relevanten Schuldverschreibungen für den or day the voting period ends, as the case may Zeitraum vom Tag der Absendung der be. Anmeldung (einschließlich) bis zu dem angegebenen Ende der Versammlung (einschließlich) bzw. dem Ende des Abstimmungszeitraums (einschließlich) nicht übertragen werden können.
(6) Gemeinsamer Vertreter. Die Anleihegläubiger (6) Joint representative. The Noteholders may by können durch Mehrheitsbeschluss die majority resolution provide for the appointment Bestellung und Abberufung eines gemeinsamen or dismissal of a joint representative, the duties Vertreters, die Aufgaben und Befugnisse des and responsibilities and the powers of such joint gemeinsamen Vertreters, die Übertragung von representative, the transfer of the rights of the Rechten der Anleihegläubiger auf den Noteholders to the joint representative and a gemeinsamen Vertreter und eine Beschränkung limitation of liability of the joint representative. der Haftung des gemeinsamen Vertreters Appointment of a joint representative may only bestimmen. Die Bestellung eines gemeinsamen be passed by a Qualified Majority if such joint Vertreters bedarf einer Qualifizierten Mehrheit, representative is to be authorised to consent to a wenn er ermächtigt wird, wesentlichen material change in the substance of the Terms Änderungen der Anleihebedingungen gemäß and Conditions in accordance with § 12(1) § 12(1) zuzustimmen. hereof.
(7) Bekanntmachungen. Bekanntmachungen be- (7) Notices. Any notices concerning this § 12 will treffend diesen § 12 erfolgen gemäß den §§ 5ff. be made in accordance with § 5 et seq. SchVG SchVG sowie nach § 13. and § 13.
(8) Änderung der Garantie. Die oben aufgeführten (8) Amendments to the Guarantee. The provisions auf die Änderung der Anleihebedingungen set out above applicable to the amendment of anwendbaren Bestimmungen finden sinngemäß the Terms and Conditions shall apply mutatis auf die Bestimmungen der Garantie und einer mutandis to the Guarantee and to any etwaigen Ersetzungsgarantie Anwendung. Substitution Guarantee.
§ 13 § 13 BEKANNTMACHUNGEN NOTICES
(1) Alle Bekanntmachungen, die die Schuldver- (1) All notices regarding the Notes, other than any schreibungen betreffen, außer den in § 12 notices stipulated in § 12 which will be made vorgesehenen Bekanntmachungen, die exclusively pursuant to the provisions SchVG, ausschließlich gemäß den Bestimmungen des will be published in the Federal Gazette SchVG erfolgen, sind von der Emittentin im (Bundesanzeiger) by the Issuer. Any notice will Bundesanzeiger zu veröffentlichen. Jede be deemed to have been validly given on the derartige Mitteilung gilt am dritten Kalendertag third calendar day following the date of such nach dem Tag der Veröffentlichung (oder bei publication (or, if published more than once, on mehreren Veröffentlichungen am dritten the third calendar day following the date of the Kalendertag nach dem Tag der ersten solchen first such publication). Veröffentlichung) als wirksam erfolgt.
96 (2) Alle Bekanntmachungen, die die Schuldver- (2) All notices regarding the Notes will be schreibungen betreffen, werden (solange die published (so long as the Notes are listed on the Schuldverschreibungen an der Luxemburger Luxembourg Stock Exchange) on the website of Wertpapierbörse notiert sind) auf der Internet- the Luxembourg Stock Exchange on Seite der Luxemburger Wertpapierbörse unter www.bourse.lu. Any notice will become www.bourse.lu veröffentlicht. Für das Datum effective for all purposes on the date of the first und die Rechtswirksamkeit sämtlicher such publication. Bekanntmachungen ist die erste Veröffentlichung maßgeblich.
(3) Die Emittentin ist berechtigt, alle die Schuld- (3) The Issuer will be entitled to deliver all notices verschreibungen betreffenden Mitteilungen an concerning the Notes to the Clearing System for das Clearingsystem zur Weiterleitung an die communication by the Clearing System to the Anleihegläubiger zu übermitteln. Jede derartige Noteholders. Any such notice shall be deemed Mitteilung gilt am siebten Tag nach dem Tag to have been validly given on the seventh day der Übermittlung der Mitteilung an das after the day on which it was delivered to the Clearingsystem als wirksam erfolgt. Clearing System.
§ 14 § 14 SCHLUSSBESTIMMUNGEN FINAL PROVISIONS
(1) Anwendbares Recht. Form und Inhalt der (1) Applicable Law. The Notes, as to form and Schuldverschreibungen sowie die Rechte und content, and all rights and obligations of the Pflichten der Anleihegläubiger und der Noteholders and the Issuer and the Guarantor Emittentin und der Garantin bestimmen sich in shall be governed by and construed exclusively jeder Hinsicht nach deutschem Recht und sollen in accordance with German law. ausschließlich nach deutschem Recht ausgelegt werden.
(2) Gerichtsstand. Vorbehaltlich eines zwingend (2) Submission to Jurisdiction. Subject to any vorgeschriebenen Gerichtsstands für bestimmte mandatory jurisdiction for specific proceedings Verfahren nach dem SchVG sind nicht under the SchVG, the courts of Frankfurt am ausschließlich zuständig für sämtliche im Main shall have non-exclusive jurisdiction for Zusammenhang mit den Schuldverschreibun- any action or other legal proceedings (the gen entstehenden Klagen oder sonstige "Proceedings") arising out of or in connection Verfahren (die "Rechtsstreitigkeiten") die with the Notes. Gerichte in Frankfurt am Main.
(3) Geltendmachung von Rechten. Jeder (3) Enforcement of Rights. Any Noteholder may in Anleihegläubiger ist berechtigt, in jedem any proceedings against the Issuer or to which Rechtsstreit gegen die Emittentin oder in jedem the Noteholder and the Issuer are parties protect Rechtsstreit, in dem der Anleihegläubiger und and enforce in its own name its rights arising die Emittentin Partei sind, seine Rechte aus under its Notes on the basis of: diesen Schuldverschreibungen im eigenen Namen geltend zu machen gegen Vorlage:
(a) einer Bescheinigung der Depotbank, die (a) a certificate issued by its Custodian (i) den vollen Namen und die volle (i) stating the full name and address of Anschrift des Anleihegläubigers the Noteholder, (ii) specifying an bezeichnet, (ii) den Gesamtnennbetrag aggregate Principal Amount of Notes von Schuldverschreibungen angibt, die credited on the date of such statement to am Ausstellungstag dieser such Noteholder's securities account(s)
97 Bescheinigung den bei dieser Depotbank maintained with its Custodian and bestehenden Depots dieses (iii) confirming that its Custodian has Anleihegläubigers gutgeschrieben sind given a written notice to the Clearing und (iii) bestätigt, dass die Depotbank System and the Principal Paying Agent dem Clearingsystem und der containing the information specified in Hauptzahlstelle eine schriftliche (i) and (ii) and bearing Mitteilung gemacht hat, die die Angaben acknowledgements of the Clearing gemäß (i) und (ii) enthält und System and the relevant account holder Bestätigungsvermerke des in the Clearing System and Clearingsystems sowie des betroffenen Kontoinhabers bei dem Clearingsystem trägt sowie
(b) einer von einem (b) a copy of the Global Note relating to the Vertretungsberechtigten des Notes, certified as being a true copy by a Clearingsystems oder der duly authorised officer of the Clearing Hauptzahlstelle bestätigten Ablichtung System or the Principal Paying Agent; or der Globalurkunde; oder
(c) eines anderen, in Rechtsstreitigkeiten in (c) any other means of evidence permitted dem Land der Geltendmachung in legal proceedings in the country of zulässigen Beweismittels. enforcement.
"Depotbank" bezeichnet ein Bank- oder "Custodian" means any bank or other financial sonstiges Finanzinstitut, bei dem der institution with which the Noteholder maintains Anleihegläubiger Schuldverschreibungen im a securities account in respect of any Notes and Depot verwahren lässt und das ein Konto bei having an account maintained with the Clearing dem Clearingsystem hat, einschließlich des System, including the Clearing System. Clearingsystems.
§ 15 § 15 SPRACHE LANGUAGE
Diese Anleihebedingungen sind in deutscher These Terms and Conditions are written in the Sprache abgefasst und mit einer Übersetzung in German language and provided with an English die englische Sprache versehen. Der deutsche language translation. The German text will be Wortlaut ist allein rechtsverbindlich. Die the only legally binding version. The English englische Übersetzung dient nur zur language translation is provided for Information. convenience only.
****** ******
The following paragraphs in italics do not form part of the Terms and Conditions.
The Guarantor intends (but is not obliged to ensure) that until the Second Reset Date, to the extent that the Notes provide the Issuer with ''equity credit'' for rating purposes by Fitch, to redeem or repurchase the Notes only to the extent they are replaced with instruments that provide equivalent Fitch equity credit (or such other nomenclature that Fitch may then use to describe the degree to which an instrument exhibits the characteristics of an ordinary share). The intention above does not provide for any claim for Noteholders nor does it create any legal obligation for the Issuer or the Guarantor.
Customary exceptions apply as to the Issuer's replacement intention including that the Issuer or Guarantor does not intend to replace the Notes:
98 (i) if the Notes are not required to support the credit profile of the Issuer or the Guarantor compared to the credit profile as of the issue date of the Notes; or
(ii) if the Notes are redeemed pursuant to a Rating Agency Event, a Tax Event, a Gross-up Event, an Accounting Event, minimal outstanding principal amount or a Change of Control Event has occurred and some or all of the Notes left outstanding are redeemed or purchased.
99 TERMS AND CONDITIONS OF THE NC2029 NOTES
ANLEIHEBEDINGUNGEN TERMS AND CONDITIONS
Diese Anleihebedingungen sind in deutscher These Terms and Conditions are written in the Sprache abgefasst und mit einer Übersetzung in German language and provided with an English die englische Sprache versehen. Der deutsche language translation. The German text will be Wortlaut ist allein rechtsverbindlich. Die the only legally binding version. The English englische Übersetzung dient nur zur language translation is provided for Information. convenience only.
§ 1 § 1 VERBRIEFUNG UND NENNBETRAG FORM AND DENOMINATION
(1) Währung, Nennbetrag. Diese Emission der (1) Currency, Denomination. This issue by Wintershall Dea Finance 2 B.V. (die "Emitten- Wintershall Dea Finance 2 B.V. (the "Issuer") tin") von garantierten nachrangigen Schuldver- of guaranteed subordinated undated bearer schreibungen ohne feste Laufzeit im Gesamt- notes in the aggregate principal amount of nennbetrag von Euro 850.000.000 (in Worten: Euro 850,000,000 (in words: Euro eight- Euro achthundertfünfzig Millionen) ist hundred and fifty million) is divided into notes eingeteilt in auf den Inhaber lautende Schuld- payable to bearer (the "Notes") in a verschreibungen (die "Schuldverschreibun- denomination of €100,000 per Note (the gen") im Nennbetrag von €100.000 je "Principal Amount"). Schuldverschreibung (der "Nennbetrag").
(2) Form. Die Schuldverschreibungen lauten auf (2) Form. The Notes are being issued in bearer den Inhaber. form.
(3) Globalurkunden und Austausch. (3) Global Notes and Exchange.
(a) Die Schuldverschreibungen sind anfänglich (a) The Notes are initially represented by a durch eine vorläufige Globalurkunde (die temporary global note (the "Temporary Global "vorläufige Globalurkunde") ohne Note") without coupons. The Temporary Global Zinsscheine verbrieft. Die vorläufige Note will be exchanged for Notes in the Globalurkunde wird gegen Principal Amount represented by a permanent Schuldverschreibungen in ihrem Nennbetrag, global note (the "Permanent Global Note") die durch eine Dauerglobalurkunde (die without coupons. The Temporary Global Note "Dauerglobalurkunde") ohne Zinsscheine and the Permanent Global Note (each a "Global verbrieft sind, ausgetauscht. Die vorläufige Note" and together the "Global Notes") will Globalurkunde und die Dauerglobalurkunde each be signed by or on behalf of the Issuer and (jeweils eine "Globalurkunde" und zusammen will each be authenticated by or on behalf of the die "Globalurkunden") werden jeweils von Principal Paying Agent. Definitive Notes and oder im Namen der Emittentin unterschrieben coupons will not be issued. und werden von oder im Namen der Hauptzahlstelle mit einer Kontrollunterschrift versehen. Einzelurkunden und Zinsscheine werden nicht ausgegeben.
(b) Die vorläufige Globalurkunde wird an einem (b) The Temporary Global Note will be exchanged Tag (der "Austauschtag") gegen die for the Permanent Global Note on a date (the Dauerglobalurkunde ausgetauscht, der nicht "Exchange Date") not later than 180 days after mehr als 180 Tage nach dem Tag der Ausgabe the date of issue of the Temporary Global Note.
100 der vorläufigen Globalurkunde liegt. Der The Exchange Date must not be earlier than 40 Austauschtag darf nicht weniger als 40 Tage days after the date of issue. Such exchange shall nach dem Tag der Begebung liegen. Ein solcher only be made upon delivery of certifications to Austausch soll nur nach Vorlage von the effect that the beneficial owner or owners of Bescheinigungen erfolgen, wonach der oder die the Notes represented by the Temporary Global wirtschaftlichen Eigentümer der durch die Note is/are not (a) U.S. person or persons (other vorläufige Globalurkunde verbrieften than certain financial institutions or certain Schuldverschreibungen keine US-Personen persons holding Notes through such financial sind (ausgenommen bestimmte Finanzinstitute institutions). Payments of interest on Notes oder bestimmte Personen, die represented by a Temporary Global Note will be Schuldverschreibungen über solche made only after delivery of such certifications. Finanzinstitute halten). Zinszahlungen auf A separate certification shall be required in durch eine vorläufige Globalurkunde verbriefte respect of each such payment of interest. Any Schuldverschreibungen erfolgen erst nach such certification received on or after the 40th Vorlage solcher Bescheinigungen. Eine day after the date of issue of the Temporary gesonderte Bescheinigung ist hinsichtlich einer Global Note will be treated as a request to jeden solchen Zinszahlung erforderlich. Jede exchange the Temporary Global Note pursuant Bescheinigung, die am oder nach dem 40. Tag to this § 1(3)(b). Any securities delivered in nach dem Tag der Ausgabe der vorläufigen exchange for the Temporary Global Note shall Globalurkunde eingeht, wird als ein Ersuchen be delivered only outside of the United States behandelt werden, diese vorläufige (as defined in § 8). Globalurkunde gemäß diesem § 1(3)(b) auszutauschen. Wertpapiere, die im Austausch für die vorläufige Globalurkunde geliefert werden, sind nur außerhalb der Vereinigten Staaten (wie in § 8 definiert) zu liefern.
(4) Clearingsystem. Jede die (4) Clearing System. Each Global Note Schuldverschreibungen verbriefende representing the Notes will be kept in custody Globalurkunde wird von dem oder im Namen by or on behalf of the Clearing System. des Clearingsystems verwahrt.
"Clearingsystem" bedeutet jeweils Folgendes: "Clearing System" means Clearstream Clearstream Banking S.A., Luxemburg Banking S.A., Luxembourg ("CBL") and ("CBL") Euroclear Bank SA/NV, Brüssel Euroclear Bank SA/NV, Brussels ("Euroclear") ("Euroclear") (CBL und Euroclear jeweils ein (CBL and Euroclear each an international internationaler Zentralverwahrer von central securities depositary ("ICSD" and Wertpapieren (international central securities together the "ICSDs")). depositary) ("ICSD" und zusammen die "ICSDs")).
Die Schuldverschreibungen werden in Form The Notes are issued in new global note einer New Global Note ("NGN") ausgegeben ("NGN") form and are kept in custody by a und von einem gemeinsamen common safekeeper on behalf of both ICSDs. Wertpapierverwahrer (common safekeeper) im Namen beider ICSDs verwahrt.
Der Gesamtnennbetrag der durch die The aggregate principal amount of Notes Globalurkunde verbrieften represented by the Global Note shall be the Schuldverschreibungen entspricht dem jeweils aggregate amount from time to time entered in in den Registern beider ICSDs eingetragenen the records of both ICSDs. The records of the Gesamtbetrag. Die Register der ICSDs (unter ICSDs (which expression means the records
101 denen man die Register versteht, die jeder ICSD that each ICSD holds for its customers which für seine Kunden über den Betrag ihres Anteils reflect the amount of such customers' interest in an den Schuldverschreibungen führt) sind the Notes) shall be conclusive evidence of the schlüssiger Nachweis über den aggregate principal amount of Notes Gesamtnennbetrag der durch die represented by the Global Note and, for these Globalurkunde verbrieften purposes, a statement issued by an ICSD stating Schuldverschreibungen, und eine zu diesen the principal amount of Notes so represented at Zwecken von einem ICSD jeweils ausgestellte any time shall be conclusive evidence of the Bestätigung mit dem Nennbetrag der so records of the relevant ICSD at that time. verbrieften Schuldverschreibungen ist ein schlüssiger Nachweis über den Inhalt des Registers des jeweiligen ICSD zu diesem Zeitpunkt.
Bei Rückzahlung oder einer Zinszahlung On any redemption or interest being made in bezüglich der durch die Globalurkunde respect of, or purchase and cancellation of, any verbrieften Schuldverschreibungen bzw. bei of the Notes represented by the Global Note the Kauf und Entwertung der durch die Issuer shall procure that details of such Globalurkunde verbrieften redemption, payment or purchase and Schuldverschreibungen stellt die Emittentin cancellation (as the case may be) in respect of sicher, dass die Einzelheiten über Rückzahlung, the Global Note shall be entered pro rata in the Zahlung bzw. Kauf und Entwertung bezüglich records of the ICSDs and, upon any such entry der Globalurkunde pro rata in die Register der being made, the aggregate principal amount of ICSDs eingetragen werden und dass nach dieser the Notes recorded in the records of the ICSDs Eintragung vom Gesamtnennbetrag der in die and represented by the Global Note shall be Register der ICSDs aufgenommenen und durch reduced by the aggregate principal amount of die Globalurkunde verbrieften the Notes so redeemed or purchased and Schuldverschreibungen der Gesamtnennbetrag cancelled. der zurückgezahlten bzw. gekauften und entwerteten Schuldverschreibungen abgezogen wird.
Bei Austausch eines Anteils von ausschließlich On an exchange of a portion only of the Notes durch eine vorläufige Globalurkunde represented by a Temporary Global Note, the verbrieften Schuldverschreibungen wird die Issuer shall procure that details of such Emittentin sicherstellen, dass die Einzelheiten exchange shall be entered pro rata in the dieses Austauschs pro rata in die records of the ICSDs. Aufzeichnungen der ICSDs aufgenommen werden.
(5) Übertragbarkeit. Den Anleihegläubigern (5) Transferability. The Noteholders are entitled to stehen Miteigentumsanteile bzw. Rechte an der proportional co-ownership interests or rights in Globalurkunde zu, die nach Maßgabe des the Global Note, which are transferable in anwendbaren Rechts und der Regeln und accordance with applicable law and the rules Bestimmungen des Clearingsystems übertragen and regulations of the Clearing System. werden können.
(6) Anleihegläubiger. "Anleihegläubiger" be- (6) Noteholder. "Noteholder" means any holder of zeichnet jeden Inhaber eines a proportionate co-ownership interest or other Miteigentumsanteils oder vergleichbaren comparable beneficial interest or right in the anderen Rechts an der Globalurkunde. Global Note.
102 § 2 § 2 STATUS, GARANTIE STATUS, GUARANTEE
(1) Status der Schuldverschreibungen. Die Ver- (1) Status of the Notes. The obligations of the bindlichkeiten der Emittentin aus den Schuld- Issuer under the Notes constitute (subject to verschreibungen begründen (vorbehaltlich § 2(2)) unsecured and subordinated obligations § 2(2)) nicht besicherte und nachrangige of the Issuer ranking Verbindlichkeiten der Emittentin, die
(a) nachrangig gegenüber allen (a) subordinated to all present and future gegenwärtigen und zukünftigen nicht unsubordinated and subordinated nachrangigen und nachrangigen obligations of the Issuer which do not Verbindlichkeiten der Emittentin, die fall under § 2(1)(b) or (c), nicht unter § 2(1)(b) oder (c) fallen, sind,
(b) untereinander und mit allen anderen (b) pari passu amongst themselves and pari gegenwärtigen und zukünftigen nicht passu with all other present and future besicherten Verbindlichkeiten der unsecured obligations of the Issuer Emittentin, die nachrangig gegenüber ranking subordinated to all allen nicht nachrangigen und unsubordinated and subordinated nachrangigen Verbindlichkeiten der obligations of the Issuer (including any Emittentin sind (einschließlich Parity Security of the Issuer), except for Gleichrangiger Wertpapiere der any subordinated obligations required to Emittentin), gleichrangig sind, soweit be preferred by mandatory provisions of nicht zwingende gesetzliche law; and Bestimmungen solche anderen nachrangigen Verbindlichkeiten im Rang besserstellen; und
(c) im Rang nur den Ansprüchen und (c) senior only to the rights and claims of Rechten von Inhabern von holders of Junior Securities of the Issuer. Nachrangigen Wertpapieren der Emittentin vorgehen.
Im Fall der Auflösung, der Liquidation, der In the event of the dissolution, liquidation, Insolvenz oder eines der Abwendung der insolvency or any proceeding to avoid Insolvenz der Emittentin dienenden Verfahrens insolvency of the Issuer, the obligations of the stehen die Verbindlichkeiten der Emittentin aus Issuer under the Notes will be subordinated to den Schuldverschreibungen allen nicht all unsubordinated and all subordinated nachrangigen und allen nachrangigen obligations of the Issuer which do not fall under Verbindlichkeiten der Emittentin, die nicht § 2(1)(b) or (c) above so that in any such event unter § 2(1)(b) oder (c) fallen, im Rang nach, so payments will not be made under the Notes until dass Zahlungen auf die Schuldverschreibungen all claims against the Issuer which pursuant to erst erfolgen, wenn alle Ansprüche gegen die this § 2 are expressed to, or by operation of law, Emittentin aus Verbindlichkeiten, die den rank senior to the obligations of the Issuer under Verbindlichkeiten der Emittentin aus den the Notes have been satisfied in full; only after Schuldverschreibungen nach Maßgabe dieses all of the aforementioned claims and obligations § 2 oder kraft Gesetzes im Rang vorgehen, under the Notes have been satisfied any vollständig befriedigt sind; erst nach remaining assets may be distributed to the Befriedigung aller der vorgenannten Ansprüche holders of Junior Securities of the Issuer. und der Verbindlichkeiten aus den Schuldver- schreibungen können die verbleibenden
103 Vermögenswerte an die Inhaber Nachrangiger Wertpapiere der Emittentin verteilt werden.
"Gleichrangiges Wertpapier der Emittentin" "Parity Security of the Issuer" means any bezeichnet jedes gegenwärtige oder zukünftige present or future security or other instrument Wertpapier oder jedes andere Instrument, das which ranks or is expressed to rank pari passu gleichrangig mit den Schuldverschreibungen ist with the Notes. oder als im Verhältnis zu den Schuldverschrei- bungen gleichrangig vereinbart ist.
"Nachrangiges Wertpapier der Emittentin" "Junior Security of the Issuer" means (i) the bezeichnet (i) die Anteile am Kapital der shares (aandelen) in the capital of the Issuer and Emittentin und (ii) jedes andere gegenwärtige (ii) any other present or future security or other oder zukünftige Wertpapier oder jedes andere instrument of the Issuer under which the Issuer's Instrument, das von der Emittentin begeben ist obligations rank or are expressed to rank pari und bei dem die daraus folgenden passu with the shares in the capital of the Issuer. Verbindlichkeiten der Emittentin mit den Anteilen am Kapital der Emittentin gleichrangig oder als gleichrangig vereinbart sind.
(2) Garantie. Die Schuldverschreibungen werden (2) Guarantee. The Notes will be unconditionally unbedingt und unwiderruflich durch die and irrevocably guaranteed by Wintershall Dea Wintershall Dea GmbH (die "Garantin") auf GmbH (the "Guarantor") on a subordinated nachrangiger Basis garantiert (die "Garantie"). basis (the "Guarantee").
Die Verbindlichkeiten der Garantin aus den The obligations of the Guarantor under the Schuldverschreibungen begründen nicht Notes constitute unsecured obligations of the besicherte Verbindlichkeiten der Garantin, die Guarantor ranking
(a) nachrangig gegenüber allen (a) subordinated to all present and future gegenwärtigen und zukünftigen nicht unsubordinated and subordinated nachrangigen und nachrangigen obligations of the Guarantor which do Verbindlichkeiten der Garantin die nicht not fall under § 2(2)(b) or (c), unter § 2(2)(b) oder (c) fallen, sind,
(b) untereinander und mit allen anderen (b) pari passu among themselves and pari gegenwärtigen und zukünftigen nicht passu with all other present and future besicherten Verbindlichkeiten der unsecured obligations of the Guarantor Garantin, die nachrangig gegenüber ranking subordinated to all allen nicht nachrangigen und unsubordinated and subordinated nachrangigen Verbindlichkeiten der obligations of the Guarantor (including Garantin sind (einschließlich der any Parity Securities of the Guarantor), Gleichrangigen Wertpapiere der except for any subordinated obligations Garantin), gleichrangig sind, soweit required to be preferred by mandatory nicht zwingende gesetzliche provisions of law; and Bestimmungen solche anderen nachrangigen Verbindlichkeiten im Rang besserstellen; und
(c) im Rang nur den Ansprüchen und (c) senior only to the rights and claims of Rechten von Inhabern Nachrangiger holders of Junior Securities of the Wertpapiere der Garantin vorgehen. Guarantor.
104 Im Fall der Auflösung, der Liquidation, In the event of the dissolution, der Insolvenz oder eines der Abwendung liquidation, insolvency or any der Insolvenz der Garantin dienenden proceeding to avoid insolvency of the Verfahrens stehen die Verbindlichkeiten Guarantor, the obligations of the der Garantin aus den Schuldverschrei- Guarantor under the Notes will be bungen allen nicht nachrangigen und subordinated to all unsubordinated and allen nachrangigen Verbindlichkeiten all subordinated obligations of the der Garantin, die nicht unter § 2(2)(b) Guarantor which do not fall under oder (c) fallen, im Rang nach, so dass § 2(2)(b) or (c) so that in any such event Zahlungen auf die Garantie erst payments will not be made under the erfolgen, wenn alle Ansprüche gegen die Guarantee until all claims against the Garantin aus Verbindlichkeiten, die den Guarantor which pursuant to this § 2 are Verbindlichkeiten der Garantin aus der expressed to, or by operation of law, Garantie nach Maßgabe dieses § 2 oder rank senior to the obligations of the kraft Gesetzes im Rang vorgehen, Guarantor under the Guarantee have vollständig befriedigt sind; erst nach been satisfied in full; only after all of the Befriedigung aller der vorgenannten aforementioned claims and obligations Ansprüche und der Verbindlichkeiten under the Guarantee have been satisfied aus der Garantie können die any remaining assets may be distributed verbleibenden Vermögenswerte an die to the holders of Junior Securities of the Inhaber Nachrangiger Wertpapiere der Guarantor. Garantin verteilt werden.
"Gleichrangiges Wertpapier der Garantin" "Parity Security of the Guarantor" means any bezeichnet jedes gegenwärtige oder zukünftige present or future security, registered security or Wertpapier, Namenswertpapier oder jedes other instrument which (i) is issued by the andere Instrument, das (i) von der Garantin Guarantor and ranks or is expressed to rank pari begeben ist und gleichrangig mit den passu with the obligations of the Guarantor Verbindlichkeiten der Garantin aus der Garantie under the Guarantee, or (ii) is issued by a ist oder als im Verhältnis zu den Subsidiary of the Guarantor and guaranteed by Verbindlichkeiten der Garantin aus der Garantie the Guarantor or for which the Guarantor has gleichrangig vereinbart ist, oder (ii) von einer otherwise assumed liability where the Tochtergesellschaft der Garantin begeben und Guarantor's obligations under the relevant von der Garantin dergestalt garantiert ist oder guarantee or other assumption of liability rank für das die Garantin dergestalt die Haftung pari passu with the Guarantor's obligations übernommen hat, dass die Verpflichtungen der under the Guarantee. Garantin aus der maßgeblichen Garantie oder Haftungsübernahme im Verhältnis zu den Verbindlichkeiten der Garantin aus der Garantie gleichrangig sind.
"Nachrangiges Wertpapier der Garantin" "Junior Security of the Guarantor" means bezeichnet (i) die Stammgeschäftsanteile oder (i) the ordinary company shares Stammaktien (soweit zum relevanten Zeitpunkt (Stammgeschäftsanteile) or ordinary shares einschlägig) der Garantin, (ii) jeden (Stammaktien) (if existing at the relevant point Geschäftsanteil einer anderen Gattung von of time) of the Guarantor, (ii) any company Geschäftsanteilen der Garantin bzw. jede Aktie share or share of any other class of company einer anderen Gattung von Aktien der Garantin, shares or shares of the Guarantor, including any einschließlich Vorzugsgeschäftsanteile oder preference company shares Vorzugsaktien (soweit zum relevanten (Vorzugsgeschäftsanteile) or preference shares Zeitpunkt einschlägig) der Garantin, (iii) jedes (Vorzugsaktien) (if existing at the relevant point andere gegenwärtige oder zukünftige of time) of the Guarantor, (iii) any other present Wertpapier, Namenswertpapier oder jedes or future security, registered security or other
105 andere Instrument, das von der Garantin instrument of the Guarantor under which the begeben ist und bei dem die daraus folgenden Guarantor's obligations rank or are expressed to Verbindlichkeiten der Garantin mit den unter (i) rank pari passu with the instruments of the und (ii) beschriebenen Instrumenten der Guarantor described under (i) and (ii), and Garantin gleichrangig oder als gleichrangig (iv) any present or future security, registered vereinbart sind, und (iv) jedes gegenwärtige security or other instrument which is issued by oder zukünftige Wertpapier, Namenswertpapier a Subsidiary of the Guarantor and guaranteed by oder jedes andere Instrument, das von einer the Guarantor or for which the Guarantor has Tochtergesellschaft der Garantin begeben ist, otherwise assumed liability where the und das von der Garantin dergestalt garantiert Guarantor's obligations under such guarantee or ist oder für das die Garantin dergestalt die other assumption of liability rank or are Haftung übernommen hat, dass die betreffenden expressed to rank pari passu with the Verbindlichkeiten der Garantin aus der instruments of the Guarantor described under maßgeblichen Garantie oder (i), (ii) and (iii). Haftungsübernahme mit den unter (i), (ii) und (iii) beschriebenen Instrumenten der Garantin gleichrangig oder als gleichrangig vereinbart sind.
"Tochtergesellschaft" bezeichnet jede "Subsidiary" means an entity in which the Gesellschaft, an der die Garantin direkt oder Guarantor holds directly or indirectly a majority indirekt mehrheitlich beteiligt ist und die von interest and which is controlled by the der Garantin im Sinne von IFRS beherrscht Guarantor within the meaning of IFRS. wird.
(3) Aufrechnungsverbot. Die Anleihegläubiger (3) Prohibition of Set-off. The Noteholders may sind nicht berechtigt, Forderungen aus den not set off any claim arising under the Notes or Schuldverschreibungen bzw. der Garantie the Guarantee against any claim that the Issuer gegen etwaige Forderungen der Emittentin oder or the Guarantor may have against any of them. der Garantin gegen sie aufzurechnen. Die The Issuer may not set off any claims it may Emittentin ist nicht berechtigt, etwaige have against any Noteholder against any claims Forderungen, welche sie gegen einen of such Noteholder under the Notes. The Anleihegläubiger hat, gegen Forderungen Guarantor may not set off any claims it may dieses Anleihegläubigers aus den Schuldver- have against any Noteholder against any claims schreibungen aufzurechnen. Die Garantin ist of such Noteholder under the Guarantee. nicht berechtigt, etwaige Forderungen, welche sie gegen einen Anleihegläubiger hat, gegen Forderungen dieses Anleihegläubigers aus der Garantie aufzurechnen.
(4) Tilgung aus sonstigem freien Vermögen. Unter (4) Payment from other distributable as- Beachtung von § 2(1) und § 2(2) bleibt es der sets. Subject to § 2(1) and § 2(2), the Guarantor Garantin unbenommen, ihre Verbindlichkeiten may satisfy its obligations in respect of the im Hinblick auf die Schuldverschreibungen Notes and the Guarantee also from their other bzw. die Garantie auch aus ihrem sonstigen distributable assets (sonstiges freies freien Vermögen zu bedienen. Vermögen).
§ 3 § 3 ZINSEN INTEREST
(1) Zinslauf. In dem Zeitraum ab dem 20. Januar (1) Interest accrual. In the period from and inclu- 2021 (der "Zinslaufbeginn") (einschließlich) ding 20 January 2021 (the "Interest bis zum Zinslaufende gemäß § 3(3) wird jede Commencement Date") to the cessation of
106 Schuldverschreibung bezogen auf ihren interest accrual in accordance with § 3(3) each Nennbetrag in Höhe des Zinssatzes (wie Note bears interest on its Principal Amount at nachstehend definiert) verzinst. the Rate of Interest (as defined below).
Zinsen sind jährlich nachträglich am 20. Januar Interest is scheduled to be paid annually in eines jeden Jahres zur Zahlung vorgesehen, arrear on 20 January of each year, commencing erstmals am 20. Januar 2022, vorbehaltlich on 20 January 2022 (subject to redemption or einer Rückzahlung oder eines Rückkaufs und repurchase and cancellation) (each an "Interest anschließender Entwertung (jeweils ein Payment Date"), and will be due and payable "Zinszahlungstag"), und werden nach (fällig) in accordance with the conditions set out Maßgabe der in § 4(1) dargelegten in § 4(1). Bedingungen fällig.
(2) Verzinsung. (2) Interest.
(a) Der "Zinssatz" entspricht (a) The "Rate of Interest" will be
(i) ab dem Zinslaufbeginn (i) from and including the Interest (einschließlich) bis zum Commencement Date to but 20. Januar 2029 (der "Erste excluding 20 January 2029 (the Zinsanpassungstag") "First Reset Date") a rate of (ausschließlich) einem Zinssatz 3.000 per cent. per annum; in Höhe von jährlich 3,000 %;
(ii) ab dem Ersten Zinsanpassungs- (ii) from and including the First tag (einschließlich) bis zum Reset Date to but excluding 20. Januar 2034 (der "Zweite 20 January 2034 (the "Second Zinsanpassungstag") Reset Date") the First Reset (ausschließlich) dem Ersten Interest Rate for such Reset Reset-Zinssatz für diesen Zinsan- Period; and passungszeitraum; und
(iii) ab dem Zweiten Zinsanpassungs- (iii) from and including the Second tag (einschließlich) dem Reset Date the Modified Reset Modifizierten Reset-Zinssatz für Interest Rate for the relevant den betreffenden Zinsanpas- Reset Period. sungszeitraum.
(b) Der "Erste Reset-Zinssatz" ist der (b) The "First Reset Interest Rate" will be Referenzsatz für den betreffenden Zins- the Reference Rate for the relevant Reset anpassungszeitraum zuzüglich 331,9 7 Period plus 331.9 8 basis points per Basispunkte per annum, wie von der Be- annum, as determined by the Calculation rechnungsstelle festgelegt. Agent.
(c) Der "Modifizierte Reset-Zinssatz" ist (c) The "Modified Reset Interest Rate" der Referenzsatz für den betreffenden will be the Reference Rate for the Zinsanpassungszeitraum zuzüglich relevant Reset Period plus 431.910 basis
7 Dies entspricht der ursprünglichen Kreditmarge im Zeitpunkt der Preisfindung. 8 This equals the initial credit spread at the time of pricing. 10 This equals the initial credit spread at the time of pricing plus 100 bps.
107 431,99 Basispunkte per annum, wie von points per annum, as determined by the der Berechnungsstelle festgelegt. Calculation Agent.
(d) Die Berechnungsstelle wird den (d) The Calculation Agent will, on the anwendbaren Ersten Reset-Zinssatz und relevant Interest Determination Date, den Modifizierten Reset-Zinssatz für die determine the First Reset Interest Rate Schuldverschreibungen an dem and the Modified Reset Interest Rate, as betreffenden Zinsfeststellungstag applicable, and cause the same to be bestimmen und veranlassen, dass dieser notified to the Issuer, the Guarantor, the der Emittentin, der Garantin, der Principal Paying Agent and, if required Hauptzahlstelle und jeder Börse, an der by the rules of any stock exchange on die Schuldverschreibungen zu diesem which the Notes are then listed, to such Zeitpunkt notiert sind und deren Regeln stock exchange, and to the Noteholders eine Mitteilung an die Börse verlangen, in accordance with § 13 without undue sowie den Anleihegläubigern gemäß delay, but, in any case, not later than on § 13 unverzüglich, aber keinesfalls the eighth Business Day after its später als am achten auf dessen determination. Bestimmung folgenden Geschäftstag mitgeteilt wird.
"Geschäftstag" bezeichnet jeden Tag "Business Day" means any day (other (außer einem Samstag oder Sonntag), an than Saturday or Sunday) on which the dem das Trans-European Automated Trans-European Automated Real-time Real-time Gross settlement Express Gross settlement Express Transfer Transfer system 2 (TARGET2) geöffnet system 2 (TARGET2) is open and the ist und das Clearing-System Zahlungen Clearing System settles payments in in Euro abwickelt. Euro.
(e) Wenn ein Kontrollwechsel-Ereignis (e) If a Change of Control Event (as defined (wie in § 6(5)(c) definiert) eintritt und in § 6(5)(c)) occurs and the Issuer does die Emittentin die Schuldverschreibun- not redeem the Notes in whole in gen nicht insgesamt gemäß § 6(5)(b) an accordance with § 6(5)(b) on the Change dem Kontrollwechsel-Stichtag (wie in of Control Effective Date (as defined in § 6(5)(c) definiert) zurückzahlt, erhöht § 6(5)(c)), the applicable Rate of Interest sich der für die Berechnung der Zinsen will be subject to an additional 500 basis ansonsten anwendbare Zinssatz ab dem points per annum above the otherwise Kontrollwechsel-Stichtag um applicable prevailing Rate of Interest zusätzliche 500 Basispunkte per annum. from the Change of Control Effective Für den Fall, dass in dem Zeitraum Date, provided however that, in case zwischen dem Eintritt des ersten more than one Change of Control Event Kontrollwechsel-Ereignisses und dem has occurred in the period from the Tag, an dem die Kontrollwechsel- occurrence of the first Change of Control Mitteilung (wie in § 6(5)(a) definiert) in Event to and including the day on which Bezug auf diesen ersten Kontrollwechsel the Change of Control Notice (as defined veröffentlicht wird, mehr als ein in § 6(5)(a)) with regard to such first Kontrollwechsel-Ereignis eintritt, erhöht Change of Control Event is published, sich der für die Berechnung der Zinsen the otherwise applicable Rate of Interest ansonsten anzuwendende Zinssatz will only be increased once. jedoch nur einmal.
9 Dies entspricht der ursprünglichen Kreditmarge im Zeitpunkt der Preisfindung plus 100 Basispunkte.
108 (f) Die Zinsen für einen beliebigen (f) Interest for any period of time will be Zeitraum werden auf der Grundlage des calculated on the basis of the Day Count Zinstagequotienten berechnet. Fraction.
"Zinstagequotient" bezeichnet bei der "Day Count Fraction" means, in Berechnung des Zinsbetrages für eine respect of the calculation of an amount Schuldverschreibung für einen of interest on any Note for any period of beliebigen Zeitraum (ab dem ersten Tag time (from and including the first day of dieses Zeitraums (einschließlich) bis such period to but excluding the last day zum letzten Tag dieses Zeitraums of such period) (the "Calculation (ausschließlich)) (der Period"): "Zinsberechnungszeitraum"):
(i) wenn der (i) if the Calculation Period is equal Zinsberechnungszeitraum der to or shorter than the Feststellungsperiode entspricht, Determination Period in which it in die er fällt, oder kürzer als falls, the number of days in the diese ist, die Anzahl von Tagen in Calculation Period divided by the dem Zinsberechnungszeitraum number of days in such dividiert durch die Anzahl von Determination Period; and Tagen in der betreffenden Feststellungsperiode; und
(ii) wenn der (ii) if the Calculation Period is longer Zinsberechnungszeitraum länger than one Determination Period, als eine Feststellungsperiode ist, the sum of: die Summe aus
(A) der Anzahl der Tage in (A) the number of days in dem betreffenden such Calculation Period Zinsberechnungs- falling in the zeitraum, die in die Determination Period in Feststellungsperiode which the Calculation fallen, in der der Period begins divided by Zinsberechnungszeitraum the number of days in beginnt, dividiert durch such Determination die Anzahl der Tage in der Period; and betreffenden Feststellungsperiode; und
(B) die Anzahl der Tage in (B) the number of days in dem betreffenden such Calculation Period Zinsberech- falling in the next nungszeitraum, die in die Determination Period nachfolgende divided by the number of Feststellungsperiode days in such fallen, dividiert durch die Determination Period. Anzahl der Tage in der betreffenden Feststellungsperiode.
109 Dabei gilt Folgendes: Where:
"Feststellungsperiode" bezeichnet jede "Determination Period" means each Periode ab einem Feststellungstermin period from and including a (einschließlich), der in ein beliebiges Determination Date in any year to but Jahr fällt, bis zum nächsten excluding the next Determination Date. Feststellungstermin (ausschließlich).
"Feststellungstermin" bezeichnet jeden "Determination Date" means each 20. Januar. 20 January.
(3) Zinslaufende. Die Verzinsung der Schuldver- (3) Cessation of interest accrual. The Notes will schreibungen endet mit Beginn des Tages, an cease to bear interest from the beginning of the dem ihr Nennbetrag zur Rückzahlung fällig day their Principal Amount is due for wird. Sollte die Emittentin eine Zahlung von repayment. If the Issuer fails to make any Kapital auf die Schuldverschreibungen bei payment of principal under the Notes when due, Fälligkeit nicht leisten, endet die Verzinsung the Notes will cease to bear interest from the der Schuldverschreibungen mit Beginn des beginning of the day on which such payment is Tages der tatsächlichen Zahlung. Der in einem made. In such case the applicable rate of interest solchen Fall jeweils anzuwendende Zinssatz will be determined pursuant to this § 3. wird gemäß diesem § 3 bestimmt.
(4) Feststellung des Referenzsatzes. Die Berech- (4) Determination of the Reference Rate. The nungsstelle bestimmt an jedem Calculation Agent will determine the relevant Zinsfeststellungstag den betreffenden Reference Rate in accordance with this § 3(4) Referenzsatz nach Maßgabe dieses § 3(4). on each Interest Determination Date.
Der "Referenzsatz" für einen Zinsanpassungs- The "Reference Rate" for a Reset Period will zeitraum wird von der Berechnungsstelle an be determined by the Calculation Agent on the dem betreffenden Zinsfeststellungstag (wie relevant Interest Determination Date (as defined nachstehend definiert) vor dem Zinsanpas- below) prior to the Reset Date on which the sungstag, an dem der betreffende Zinsanpas- relevant Reset Period commences (the sungszeitraum beginnt (der "Referenz-Zinsan- "Reference Reset Date") as follows: passungstag"), wie folgt festgelegt:
(a) Für jeden Zinsanpassungszeitraum, der (a) For each Reset Period beginning prior to vor dem Eintritt des jeweiligen Stichtags the occurrence of the relevant Effective (wie in § 3(5)(g) definiert) beginnt, Date (as defined in § 3(5)(g)), the entspricht der Referenzsatz dem Reference Rate will be equal to the Ursprünglichen Benchmarksatz an dem Original Benchmark Rate on the relevant betreffenden Zinsfeststellungstag. Interest Determination Date.
Falls der Ursprüngliche Benchmarksatz If the Original Benchmark Rate does not zu dem betreffenden Zeitpunkt an dem appear on the Screen Page as at such betreffenden Zinsfeststellungstag nicht time on the relevant Interest auf der Bildschirmseite angezeigt wird, Determination Date, the "Reference entspricht der "Referenzsatz" dem Rate" will be equal to the Reference Referenzbankensatz an diesem Bank Rate on that Interest Determination betreffenden Zinsfeststellungstag. Date.
Kann der Referenzbankensatz nicht If the Reference Bank Rate cannot be gemäß der Definition dieses Begriffs determined pursuant to the definition of bestimmt werden, entspricht der this term, the relevant "Reference Rate" jeweilige "Referenzsatz" dem durch die shall be equal to the last Original Bench- Berechnungsstelle festgelegten
110 Ursprünglichen Benchmarksatz, mark Rate available on the Screen Page welcher zuletzt auf der Bildschirmseite as determined by the Calculation Agent. verfügbar war.
(b) Für jeden Zinsanpassungszeitraum, der (b) For each Reset Period commencing on an oder nach dem jeweiligen Stichtag or after the relevant Effective Date, the beginnt, wird der "Referenzsatz" gemäß "Reference Rate" will be determined in § 3(5) bestimmt. accordance with § 3(5).
"Ursprünglicher Benchmarksatz" "Original Benchmark Rate" means the bezeichnet den um 11:00 Uhr annual swap rate which is fixed at 11:00 (Frankfurter Zeit) gefixten, als a.m. (Frankfurt time) and is expressed as Prozentsatz ausgedrückten Swapsatz per a percentage per annum for Euro annum für in Euro denominierte Swap- denominated swap transactions with a Transaktionen mit einer Laufzeit von 5 maturity of 5 years which appears on the Jahren, der auf der Bildschirmseite am Screen Page on the relevant Interest betreffenden Zinsfeststellungstag gegen Determination Date at or around 11:00 11:00 Uhr (Frankfurter Zeit) angezeigt a.m. (Frankfurt time). wird.
Der "Referenzbankensatz" ist der "Reference Bank Rate" means the Prozentsatz, der auf Basis der 5-Jahres- percentage rate determined by the Mid-Swapsatz-Quotierungen, die der Calculation Agent on the basis of the 5- Berechnungsstelle auf Bitten der year Mid Swap Rate Quotations Emittentin ungefähr um 11:00 Uhr provided by up to five leading swap (Frankfurter Zeit) von bis zu fünf dealers in the interbank market selected führenden von der Emittentin by the Issuer to the Calculation Agent at ausgewählten Swap-Händlern im the request of the Issuer at Interbankenhandel gestellt werden, am approximately 11:00 a.m. (Frankfurt Zinsfeststellungstag von der Berech- time) on the Interest Determination nungsstelle festgelegt wird. Wenn Date. If at least three 5-year Mid Swap mindestens drei 5-Jahres-Mid- Rate Quotations are provided, the Swapsatz-Quotierungen genannt Reference Bank Rate will be the werden, wird der Referenzbankensatz arithmetic mean of the quotations, das arithmetische Mittel der 5-Jahres- eliminating the highest quotation (or, in Mid-Swapsatz-Quotierungen unter the event of equality one of the highest) Ausschluss der höchsten Quotierung and the lowest quotation (or, in the event (bzw., für den Fall von gleich hohen of equality, one of the lowest). If only Quotierungen, einer der höchsten two 5-year Mid Swap Rate Quotations Quotierungen) und der niedrigsten are provided, the Reference Bank Rate Quotierung (bzw., für den Fall von will be the arithmetic mean of the gleich hohen Quotierungen, einer der quotations provided. If only one 5-year niedrigsten Quotierungen) sein. Falls Mid Swap Rate Quotation is provided, nur zwei 5-Jahres-Mid-Swapsatz- the Reference Bank Rate will be the Quotierungen zur Verfügung gestellt quotation provided. For this purpose, "5- werden, ist der Referenzbankensatz das year Mid Swap Rate Quotation" rechnerische Mittel der zur Verfügung means the arithmetic mean of the bid and gestellten Quotierungen. Falls nur eine offered rates for the annual fixed rate leg 5-Jahres-Mid-Swapsatz-Quotierung zur (calculated on a 30/360 day count basis) Verfügung gestellt wird, ist der of a fixed-for-floating Euro interest rate Referenzbankensatz gleich der zur swap transaction which transaction Verfügung gestellten Quotierung. Dabei (x) has a term of 5 years and bezeichnet "5-Jahres-Mid-Swapsatz- commencing on the relevant Reset Date,
111 Quotierung" das arithmetische Mittel (y) is in an amount that is representative der nachgefragten (bid) und of a single transaction in the relevant angebotenen (offered) Prozentsätze für market at the relevant time with an den jährlichen Festzinszahlungsstrom acknowledged dealer of good credit in (berechnet auf einer 30/360 Tage- the swap market, and (z) has a floating Berechnungsbasis) einer fixed-for- leg based on the 6-month EURIBOR rate floating Euro Zinsswap-Transaktion, (calculated on an Actual/360 day count (x) die eine 5-jährige Laufzeit hat und basis). am betreffenden Zinsanpassungstag beginnt, (y) die auf einen Betrag lautet, der dem einer repräsentativen einzelnen Transaktion in dem relevanten Markt zur relevanten Zeit eines anerkannten Händlers mit guter Bonität im Swap- Markt entspricht, und (z) deren variabler Zahlungsstrom auf dem 6-Monats EURIBOR Satz beruht (berechnet auf einer Actual/360 Tage- Berechnungsbasis).
Dabei gilt Folgendes: Where:
"Bildschirmseite" bezeichnet die "Screen Page" means Reuters Screen Reuters Bildschirmseite "ICESWAP2 / Page "ICESWAP2 / EURFIXA" under EURFIXA" unter der Überschrift the heading "EURIBOR BASIS" and the "EURIBOR BASIS" und dem Untertitel caption "11:00 AM Frankfurt time" (as "11:00 AM Frankfurt time" (auf dem such headings and captions may appear solche Überschriften und Untertitel von from time to time). If the Screen Page Zeit zu Zeit erscheinen). Hat die permanently ceases to quote the Original Bildschirmseite dauerhaft aufgehört, den Benchmark Rate but such quotation is Ursprünglichen Benchmarksatz available from another page selected by anzugeben, ist diese Quotierung jedoch the Issuer in its reasonable discretion auf einer anderen, von der Emittentin (the "Replacement Screen Page"), the nach billigem Ermessen ausgewählten Replacement Screen Page must be used Bildschirmseite verfügbar (die for the purpose of the determination of "Ersatzbildschirmseite"), wird die the Original Benchmark Rate. Ersatzbildschirmseite zum Zweck der Festlegung des Ursprünglichen Bench- marksatzes eingesetzt.
"TARGET-Geschäftstag" bezeichnet "TARGET Business Day" means a day einen Tag, an dem das Trans-European on which the Trans-European Automated Real-time Gross settlement Automated Real-time Gross settlement Express Transfer system 2 (TARGET2) Express Transfer system 2 (TARGET2) betriebsbereit ist. is operational.
"Zinsanpassungstag" bezeichnet den "Reset Date" means the First Reset Date Ersten Zinsanpassungstag und danach and thereafter each fifth anniversary of jeden fünften Jahrestag des the immediately preceding Reset Date. vorausgegangenen Zinsanpassungstags.
"Zinsanpassungszeitraum" bezeichnet "Reset Period" means each period from jeden Zeitraum ab dem Ersten Zinsan- and including the First Reset Date to but passungstag (einschließlich) bis zum excluding the next following Reset Date
112 nächstfolgenden Zinsanpassungstag and thereafter from and including each (ausschließlich) und nachfolgend ab Reset Date to but excluding the next jedem Zinsanpassungstag following Reset Date. (einschließlich) bis zu dem jeweils nächstfolgenden Zinsanpassungstag (ausschließlich).
"Zinsfeststellungstag" bezeichnet den "Interest Determination Date" means zweiten TARGET-Geschäftstag vor the second TARGET Business Day prior dem betreffenden Referenz-Zinsanpas- to the relevant Reference Reset Date. sungstag.
(5) Benchmark-Ereignis. Wenn ein Benchmark- (5) Benchmark Event. If a Benchmark Event (as Ereignis (wie in § 3(5)(f) definiert) in Bezug auf defined in § 3(5)(f)) occurs in relation to the den Ursprünglichen Benchmarksatz eintritt, gilt Original Benchmark Rate, the relevant für die Bestimmung des betreffenden Reference Rate and the interest on the Notes in Referenzsatzes und die Verzinsung der Schuld- accordance with § 3 will be determined as verschreibungen gemäß § 3 Folgendes: follows:
(a) Unabhängiger Berater. Die Emittentin (a) Independent Adviser. The Issuer shall, wird sich nach besten Kräften bemühen, as soon as this is (in the reasonable sobald dies (nach billigem Ermessen der discretion of the Issuer) required Emittentin) nach Eintritt des Bench- following the occurrence of the Bench- mark-Ereignisses und vor dem nächsten mark Event and prior to the next Interest Zinsfeststellungstag erforderlich ist, Determination Date, use its best efforts einen Unabhängigen Berater (wie in to appoint an Independent Adviser (as § 3(5)(f) definiert) zu benennen, der defined in § 3(5)(f)), who will determine einen Neuen Benchmarksatz (wie in a New Benchmark Rate (as defined in § 3(5)(f) definiert), die § 3(5)(f)), the Adjustment Spread (as Anpassungsspanne (wie in § 3(5)(f) defined in § 3(5)(f)) and any Benchmark definiert) und etwaige Benchmark- Amendments (in accordance with Änderungen (gemäß § 3(5)(d)) festlegt. § 3(5)(d)).
(b) Ausweichsatz (Fallback Rate). Wenn (b) Fallback rate. If, prior to the 10th vor dem 10. Geschäftstag vor dem Business Day prior to the relevant betreffenden Zinsfeststellungstag Interest Determination Date,
(i) die Emittentin keinen (i) the Issuer has not appointed an Unabhängigen Berater benannt Independent Adviser; or hat; oder
(ii) der benannte Unabhängige (ii) the Independent Adviser Berater keinen Neuen Bench- appointed by it has not marksatz, keine determined a New Benchmark Anpassungsspanne und/oder Rate, has not determined the keine Benchmark-Änderungen Adjustment Spread and/or has (sofern erforderlich) gemäß not determined the Benchmark diesem § 3(5) festgelegt hat, Amendments (if required) in accordance with this § 3(5),
dann entspricht der "Referenzsatz" für then the "Reference Rate" applicable to den nächsten Zinsanpassungszeitraum the next Reset Period shall be the dem an dem letzten zurückliegenden
113 Zinsfeststellungstag festgestellten Reference Rate determined on the last Referenzsatz. preceding Interest Determination Date.
Falls dieser § 3(5)(b) bereits an dem If this § 3(5)(b) is to be applied on the Zinsfeststellungstag für den Ersten Zins- Interest Determination Date for the First anpassungstag angewendet werden Reset Date, the Reference Rate muss, entspricht der Referenzsatz für applicable to the first Reset Period shall den ersten Zinsanpassungszeitraum be – 0.319 per cent. per annum.12 – 0,319 % per annum.11
Falls der gemäß diesem § 3(5)(b) If the fallback rate determined in bestimmte Ausweichsatz (Fallback accordance with this § 3(5)(b) is to be Rate) zur Anwendung kommt, wird applied, § 3(5) will be operated again to § 3(5) erneut angewendet, um den determine the Reference Rate applicable Referenzsatz für den nächsten to the next subsequent (and, if required, nachfolgenden Zinsanpassungszeitraum further subsequent) Reset Period(s). (und, sofern notwendig, weitere nachfolgende Zinsanpassungszeiträu- me) zu bestimmen.
(c) Nachfolge-Benchmarksatz oder (c) Successor Benchmark Rate or Alternativ-Benchmarksatz. Falls der Alternative Benchmark Rate. If the Unabhängige Berater nach billigem Independent Adviser determines in its Ermessen feststellt, reasonable discretion that:
(i) dass es einen Nachfolge-Bench- (i) there is a Successor Benchmark marksatz gibt, dann ist dieser Rate, then such Successor Bench- Nachfolge-Benchmarksatz der mark Rate shall subsequently be Neue Benchmarksatz; oder the New Benchmark Rate; or
(ii) dass es keinen Nachfolge-Bench- (ii) there is no Successor Benchmark marksatz aber einen Alternativ- Rate but that there is an Benchmarksatz gibt, dann ist Alternative Benchmark Rate, dieser Alternativ-Benchmarksatz then such Alternative Benchmark der Neue Benchmarksatz. Rate shall subsequently be the New Benchmark Rate.
In beiden Fällen entspricht der In either case the "Reference Rate" for "Referenzsatz" für den unmittelbar the immediately following Reset Period nachfolgenden Zinsanpassungszeitraum and all following Reset Periods will then und alle folgenden Zinsanpassungszeit- be (x) the New Benchmark Rate on the räume dann (x) dem Neuen Bench- relevant Interest Determination Date marksatz an dem betreffenden plus (y) the Adjustment Spread. Zinsfeststellungstag zuzüglich (y) der Anpassungsspanne.
(d) Benchmark-Änderungen. Wenn ein (d) Benchmark Amendments. If any Neuer Benchmarksatz und die relevant New Benchmark Rate and the entsprechende Anpassungsspanne applicable Adjustment Spread are gemäß diesem § 3(5) festgelegt werden, determined in accordance with this
11 Entspricht der Reoffer-Rendite abzüglich der ursprünglichen Kreditmarge im Zeitpunkt der Preisfindung. 12 Equal to the Reoffer-Yield minus the initial credit spread at the time of pricing.
114 und wenn der Unabhängige Berater § 3(5), and if the Independent Adviser feststellt, dass resultierend aus den determines that, resulting from the vorgenannten Festlegungen Änderungen aforementioned determinations, der Bedingungen für die Feststellungen amendments to the conditions for the des anwendbaren Zinssatzes notwendig determination of the applicable Rate of sind, um die ordnungsgemäße Interest are necessary to ensure the Anwendung des Neuen Bench- proper operation of such New Bench- marksatzes und der entsprechenden mark Rate and the applicable Anpassungsspanne zu gewährleisten Adjustment Spread (such amendments, (diese Änderungen, die "Benchmark- the "Benchmark Amendments"), then Änderungen"), dann wird der the Independent Adviser will determine Unabhängige Berater die Benchmark- the Benchmark Amendments and the Änderungen feststellen, und wird die Issuer will give notice thereof in Emittentin diese durch eine Mitteilung accordance with § 3(5)(e). gemäß § 3(5)(e) bekanntmachen.
Diese Benchmark-Änderungen können The Benchmark Amendments may insbesondere folgende Regelungen in include, without limitation, the diesen Anleihebedingungen erfassen: following conditions of these Terms and Conditions:
(i) den Referenzsatz einschließlich (i) the Reference Rate including the der "Bildschirmseite" und/oder "Screen Page" and/or the method die Methode zur Bestimmung des for determining the fallback rate Ausweichsatzes (sog. Fallback in relation to the Reference Rate, Rate) für den Referenzsatz including the Reference Bank einschließlich des Rate; and/or Referenzbankensatzes; und/oder
(ii) die Definitionen der Begriffe (ii) the definitions of the terms "Geschäftstag", "Business Day", "Interest "Zinszahlungstag", Payment Date", "Interest Period", "Zinsperiode", "Day Count Fraction" and/or "Zinstagequotient" und/oder "Interest Determination Date" "Zinsfeststellungstag" (including the determination (einschließlich der Festlegung ob whether the Reference Rate will der Referenzsatz vorwärts- oder be determined on a forward rückwärtsgerichtet bestimmt looking or a backward looking wird); und/oder basis); and/or
(iii) der Geschäftstagekonvention (iii) the business day convention in gemäß § 5(4). § 5(4).
(e) Mitteilungen, etc. Die Emittentin wird (e) Notices, etc. The Issuer will notify any einen Neuen Benchmarksatz, die New Benchmark Rate, the Adjustment Anpassungsspanne und etwaige Bench- Spread and the Benchmark Amendments mark-Änderungen gemäß diesem § 3(5) (if any) determined under this § 3(5) to der Hauptzahlstelle, der Berechnungs- the Principal Paying Agent, the stelle, den Zahlstellen, der Garantin und Calculation Agent, the Paying Agents, gemäß § 13 den Anleihegläubigern the Guarantor and, in accordance with mitteilen, und zwar sobald eine solche § 13, the Noteholders as soon as such Mitteilung (nach Ansicht der Emittentin) notification is (in the Issuer's view) nach deren Feststellung erforderlich ist, required following the determination
115 spätestens jedoch an dem 10. thereof, but in any event not later than on Geschäftstag vor dem betreffenden the 10th Business Day prior to the Zinsfeststellungstag. Eine solche relevant Interest Determination Date. Mitteilung ist unwiderruflich und hat Such notice shall be irrevocable and den Stichtag zu benennen. shall specify the Effective Date.
Der Neue Benchmarksatz, die The New Benchmark Rate, the Anpassungsspanne und etwaige Bench- Adjustment Spread and the Benchmark mark-Änderungen, die jeweils in der Amendments (if any), each as specified Mitteilung benannt werden, sind für die in such notice, will be binding on the Emittentin, die Garantin, die Issuer, the Guarantor, the Principal Hauptzahlstelle, die Berechnungsstelle, Paying Agent, the Calculation Agent, the die Zahlstellen und die Anleihegläubiger Paying Agents and the Noteholders. The bindend. Die Anleihebedingungen Terms and Conditions shall be deemed gelten ab dem Stichtag als durch den to have been amended by the New Neuen Benchmarksatz, die Benchmark Rate, the Adjustment Spread Anpassungsspanne und die etwaigen and the Benchmark Amendments, if any, Benchmark-Änderungen geändert. with effect from the Effective Date.
An oder vor dem Tag dieser Mitteilung On or prior to the date of such notice, the hat die Emittentin der Hauptzahlstelle Issuer shall deliver to the Principal und der Berechnungsstelle eine durch Paying Agent and the Calculation Agent zwei Unterschriftsberechtigte der a certificate signed by two authorised Emittentin unterzeichnete signatories of the Issuer: Bescheinigung zu übergeben, die
(i) (i)
(A) bestätigt, dass ein Bench- (A) confirming that a Bench- mark-Ereignis eingetreten mark Event has occurred; ist;
(B) den nach Maßgabe der (B) specifying the relevant Bestimmungen dieses New Benchmark Rate § 3(5) festgestellten determined in accordance Neuen Benchmarksatz with the provisions of this benennt; § 3(5);
(C) die entsprechende (C) specifying the applicable Anpassungsspanne und Adjustment Spread and etwaige Benchmark- the Benchmark Änderungen benennt, die Amendments (if any), jeweils nach Maßgabe der each determined in Bestimmungen dieses accordance with the § 3(5) festgestellt wurden; provisions of this § 3(5); und and
(D) den Stichtag benennt; und (D) specifying the Effective Date; and
(ii) bestätigt, dass die etwaigen (ii) confirming that the Benchmark Benchmark-Änderungen Amendments, if any, are notwendig sind, um die necessary to ensure the proper ordnungsgemäße Anwendung operation of such relevant New des Neuen Benchmarksatzes und
116 der entsprechenden Benchmark Rate and the Anpassungsspanne zu applicable Adjustment Spread. gewährleisten.
(f) Definitionen. Zur Verwendung in (f) Definitions. As used in this § 3(5): diesem § 3(5):
Die "Anpassungsspanne", die positiv, The "Adjustment Spread", which may negativ oder gleich Null sein kann, wird be positive, negative or zero, will be in Basispunkten ausgedrückt und expressed in basis points and means bezeichnet entweder (a) die Spanne oder either (a) the spread, or (b) the result of (b) das Ergebnis der Anwendung der the operation of the formula or Formel oder Methode zur Berechnung methodology for calculating the spread, der Spanne, die which
(1) im Fall eines Nachfolge-Bench- (1) in the case of a Successor Bench- marksatzes formell im mark Rate, is formally Zusammenhang mit der recommended in relation to the Ersetzung des Ursprünglichen replacement of the Original Benchmarksatzes durch den Benchmark Rate with the Nachfolge-Benchmarksatz von Successor Benchmark Rate by dem Nominierungsgremium any Relevant Nominating Body; empfohlen wird; oder or
(2) (sofern keine Empfehlung (2) (if no such recommendation has abgegeben wurde oder im Fall been made, or in the case of an eines Alternativ-Bench- Alternative Benchmark Rate) is marksatzes) üblicherweise an den customarily applied to the New internationalen Benchmark Rate in the Anleihekapitalmärkten auf den international debt capital markets Neuen Benchmarksatz to produce an industry-accepted angewendet wird, um einen replacement benchmark rate for industrieweit akzeptierten Ersatz- the Original Benchmark Rate, Benchmarksatz für den provided that all determinations Ursprünglichen Benchmarksatz will be made by the Independent zu erzeugen, wobei sämtliche Adviser in its reasonable Feststellungen durch den discretion; or Unabhängigen Berater nach billigem Ermessen vorgenommen werden; oder
(3) (sofern der Unabhängige Berater (3) (if the Independent Adviser in its nach billigem Ermessen feststellt, reasonable discretion determines dass keine solche Spanne that no such spread is customarily üblicherweise angewendet wird, applied and that the following und dass das Folgende would be appropriate for the angemessen ist für die Schuldver- Notes) is recognised or schreibungen) als industrieweiter acknowledged as being the Standard für Over-the-Counter industry standard for over-the- Derivatetransaktionen, die sich counter derivative transactions auf den Ursprünglichen Bench- which reference the Original marksatz beziehen, anerkannt Benchmark Rate, where the und bestätigt ist, wenn der Original Benchmark Rate has
117 Ursprüngliche Benchmarksatz been replaced by the New Bench- durch den Neuen Benchmarksatz mark Rate, provided that all ersetzt worden ist, wobei determinations will be made by sämtliche Feststellungen durch the Independent Adviser in its den Unabhängigen Berater nach reasonable discretion. billigem Ermessen vorgenommen werden.
"Alternativ-Benchmarksatz" "Alternative Benchmark Rate" means bezeichnet eine alternative Benchmark an alternative benchmark or screen rate oder einen alternativen Bildschirmsatz, which is customarily applied in the die bzw. der üblicherweise an den international debt capital markets for the internationalen Anleihekapitalmärkten purpose of determining reset rates of zur Bestimmung von Reset-Zinssätzen interest or mid swap rates in Euro, bzw. Mid-Swap-Sätzen in Euro provided that all determinations will be angewendet wird, wobei sämtliche made by the Independent Adviser. Feststellungen durch den Unabhängigen Berater vorgenommen werden.
Ein "Benchmark-Ereignis" tritt ein, A "Benchmark Event" occurs if: wenn:
(1) der Ursprüngliche Bench- (1) the Original Benchmark Rate marksatz nicht mehr regelmäßig ceases to be published on a veröffentlicht wird oder nicht regular basis or ceases to exist; or mehr erstellt wird; oder
(2) eine öffentliche Erklärung des (2) a public statement by the Administrators des administrator of the Original Ursprünglichen Bench- Benchmark Rate is made that it marksatzes veröffentlicht wird, has ceased or that it will cease wonach dieser die publishing the Original Bench- Veröffentlichung des mark Rate permanently or Ursprünglichen Bench- indefinitely (in circumstances marksatzes dauerhaft oder auf where no successor administrator unbestimmte Zeit eingestellt hat has been appointed that will oder einstellen wird (in Fällen in continue the publication of the denen kein Original Benchmark Rate); or Nachfolgeadministrator ernannt worden ist, der die Veröffentlichung des Ursprünglichen Bench- marksatzes vornehmen wird); oder
(3) eine öffentliche Erklärung der (3) a public statement by the Aufsichtsbehörde des supervisor of the administrator of Administrators des the Original Benchmark Rate is Ursprünglichen Bench- made that the Original Bench- marksatzes veröffentlicht wird, mark Rate has been or will be wonach der Ursprüngliche permanently or indefinitely Benchmarksatz dauerhaft oder discontinued; or auf unbestimmte Zeit nicht mehr
118 fortgeführt wird oder nicht mehr fortgeführt werden wird; oder
(4) eine öffentliche Erklärung der (4) a public statement by the Aufsichtsbehörde des supervisor of the administrator of Administrators des the Original Benchmark Rate is Ursprünglichen Bench- made as a consequence of which marksatzes veröffentlicht wird, the Original Benchmark Rate will aufgrund derer der Ursprüngliche be prohibited from being used Benchmarksatz allgemein oder in either generally, or in respect of Bezug auf die Schuldverschrei- the Notes; or bungen nicht mehr verwendet werden darf; oder
(5) die Verwendung des (5) it has become unlawful for any Ursprünglichen Bench- Paying Agent, the Calculation marksatzes zur Berechnung Agent, the Issuer, the Guarantor jedweder Zahlungen an or any other party to calculate any Anleihegläubiger für die payments due to be made to any Zahlstellen, die Berechnungsstel- Noteholder using the Original le, die Emittentin, die Garantin Benchmark Rate; or oder jeden Dritten rechtswidrig geworden ist; oder
(6) eine öffentliche Erklärung der (6) a public statement by the Aufsichtsbehörde des supervisor for the administrator Administrators des of the Original Benchmark Rate Ursprünglichen Bench- is made announcing that the marksatzes veröffentlicht wird, Original Benchmark Rate is no mit der bekanntgegeben wird, longer representative; or dass der Ursprüngliche Bench- marksatz nicht mehr repräsentativ ist; oder
(7) sich die Methode für die (7) the methodology for the Feststellung des Ursprünglichen determination of the Original Benchmarksatzes gegenüber der Benchmark Rate is materially Methode, die der Administrator altered compared to the des Ursprünglichen Bench- methodology as used by the marksatzes bei Zinslaufbeginn administrator of the Original anwendete, wesentlich ändert. Benchmark Rate at the Interest Commencement Date.
"Nachfolge-Benchmarksatz" "Successor Benchmark Rate" means a bezeichnet einen Nachfolger oder Ersatz successor to or replacement of the des Ursprünglichen Benchmarksatzes, Original Benchmark Rate which is der formell durch das formally recommended by any Relevant Nominierungsgremium empfohlen Nominating Body. wurde.
"Neuer Benchmarksatz" bezeichnet "New Benchmark Rate" means the den jeweils gemäß diesem § 3(5) Successor Benchmark Rate or, as the case may be, the Alternative Benchmark
119 bestimmten Nachfolge-Benchmarksatz Rate determined in accordance with this bzw. Alternativ-Benchmarksatz. § 3(5).
"Nominierungsgremium" bezeichnet "Relevant Nominating Body" means, in Bezug auf die Ersetzung des in respect of the replacement of the Ursprünglichen Benchmarksatzes: Original Benchmark Rate:
(1) die Zentralbank für die Währung, (1) the central bank for the currency in der die Benchmark oder der to which the benchmark or screen Bildschirmsatz dargestellt wird, rate (as applicable) relates, or any oder eine Zentralbank oder central bank or other supervisory andere Aufsichtsbehörde, die für authority which is responsible for die Aufsicht des Administrators supervising the administrator of der Benchmark oder des the benchmark or screen rate (as Bildschirmsatzes zuständig ist; applicable); or oder
(2) jede Arbeitsgruppe oder jeden (2) any working group or committee Ausschuss gefördert durch, sponsored by, chaired or co- geführt oder mitgeführt von oder chaired by or constituted at the gebildet von (a) der Zentralbank request of (a) the central bank for für die Währung in der die the currency to which the bench- Benchmark oder der mark or screen rate (as Bildschirmsatz dargestellt wird, applicable) relates, (b) any (b) einer Zentralbank oder central bank or other supervisory anderen Aufsichtsbehörde, die authority which is responsible for für die Aufsicht des supervising the administrator of Administrators der Benchmark the benchmark or screen rate (as oder des Bildschirmsatzes applicable), (c) a group of the zuständig ist, (c) einer Gruppe aforementioned central banks or der zuvor genannten other supervisory authorities or Zentralbanken oder anderer (d) the Financial Stability Board Aufsichtsbehörden oder (d) dem or any part thereof. Finanzstabilitätsrat (Financial Stability Board) oder Teilen davon.
"Unabhängiger Berater" bezeichnet "Independent Adviser" means an ein von der Emittentin ernanntes independent financial institution of unabhängiges Finanzinstitut mit international repute or other independent internationalem Ansehen oder einen financial adviser experienced in the anderen unabhängigen Finanzberater international debt capital markets, in mit Erfahrung in internationalen each case appointed by the Issuer. Anleihekapitalmärkten.
(g) Stichtag. Der Stichtag für die (g) Effective Date. The effective date for Anwendung des Neuen Bench- the application of the New Benchmark marksatzes, der Anpassungsspanne und Rate, the Adjustment Spread and the der etwaigen Benchmark-Änderungen Benchmark Amendments (if any) gemäß diesem § 3(5) (der "Stichtag") ist determined under this § 3(5) (the der Zinsfeststellungstag, der auf den "Effective Date") will be the Interest frühesten der folgenden Tage fällt oder Determination Date falling on or after diesem nachfolgt: the earliest of the following dates:
120 (i) den Tag des Eintritts des Bench- (i) if the Benchmark Event has mark-Ereignisses, wenn das occurred as a result of clauses (1), Benchmark-Ereignis aufgrund (6) or (7) of the definition of the der Absätze (1), (6) oder (7) der term "Benchmark Event", the Definition des Begriffs "Bench- date of the occurrence of the mark-Ereignis" eingetreten ist; Benchmark Event; or oder
(ii) den Tag, an dem die (ii) if the Benchmark Event has Veröffentlichung des occurred as a result of clauses (2), Ursprünglichen Bench- (3) or (4) of the definition of the marksatzes eingestellt wird bzw. term "Benchmark Event", the an dem der Ursprüngliche Bench- date of cessation of publication of marksatz eingestellt wird, wenn the Original Benchmark Rate or das Benchmark-Ereignis of the discontinuation of the aufgrund der Absätze (2), (3) Original Benchmark Rate, as the oder (4) der Definition des case may be; or Begriffs "Benchmark-Ereignis" eingetreten ist; oder
(iii) den Tag, ab dem der (iii) if the Benchmark Event has Ursprüngliche Benchmarksatz occurred as a result of clause (5) nicht mehr verwendet werden of the definition of the term darf, wenn das Benchmark- "Benchmark Event", the date Ereignis aufgrund des Absatzes from which the prohibition (5) der Definition des Begriffs applies. "Benchmark-Ereignis" eingetreten ist.
(h) Wenn ein Benchmark-Ereignis in Bezug (h) If a Benchmark Event occurs in relation auf einen Neuen Benchmarksatz eintritt, to any New Benchmark Rate, § 3(5) gilt dieser § 3(5) entsprechend für die shall apply mutatis mutandis to the Ersetzung des Neuen Benchmarksatzes replacement of such New Benchmark durch einen neuen Nachfolge-Bench- Rate by any new Successor Benchmark marksatz bzw. Alternativ-Bench- Rate or Alternative Benchmark Rate, as marksatz. In diesem Fall gilt jede the case may be. In this case, any Bezugnahme in diesem § 3 auf den reference in this § 3 to the term Original Begriff Ursprünglicher Benchmarksatz Benchmark Rate shall be deemed to be a als Bezugnahme auf den zuletzt reference to the New Benchmark Rate verwendeten Neuen Benchmarksatz. that last applied.
(i) In diesem § 3(5) schließt jede (i) Any reference in this § 3(5) to the term Bezugnahme auf den Begriff Original Benchmark Rate shall be "Ursprünglicher Benchmarksatz" deemed to include a reference to any gegebenenfalls auch eine Bezugnahme component part thereof, if any, in respect auf jede etwaige Teilkomponente des of which a Benchmark Event has Ursprünglichen Benchmarksatzes ein, occurred. wenn in Bezug auf diese Teilkomponente ein Benchmark- Ereignis eingetreten ist.
121 § 4 § 4 FÄLLIGKEIT VON ZINSZAHLUNGEN; DUE DATE FOR INTEREST PAYMENTS; AUFSCHUB VON ZINSZAHLUNGEN; DEFERRAL OF INTEREST PAYMENTS; ZAHLUNG AUFGESCHOBENER PAYMENT OF DEFERRED INTEREST ZINSZAHLUNGEN PAYMENTS
(1) Fälligkeit von Zinszahlungen; wahlweiser (1) Due date for interest payments; optional Zinsaufschub. interest deferral.
(a) Zinsen werden für jede Zinsperiode an (a) Interest for each Interest Period will be dem unmittelbar auf diese Zinsperiode due and payable (fällig) on the Interest folgenden Zinszahlungstag fällig, sofern Payment Date immediately following sich die Emittentin nicht durch eine such Interest Period, unless the Issuer Bekanntmachung an die elects, by giving not less than 10 and not Anleihegläubiger gemäß § 13 innerhalb more than 15 Business Days' notice to einer Frist von nicht weniger als 10 und the Noteholders prior to the relevant nicht mehr als 15 Geschäftstagen vor Interest Payment Date in accordance dem betreffenden Zinszahlungstag dazu with § 13, to defer the relevant payment entscheidet, die betreffende Zinszahlung of interest in whole or in part. insgesamt oder teilweise auszusetzen.
Wenn sich die Emittentin an einem If the Issuer elects not to pay accrued Zinszahlungstag insgesamt oder interest in whole or in part on an Interest teilweise zur Nichtzahlung Payment Date, then it will not have any aufgelaufener Zinsen entscheidet, dann obligation to pay interest to such extent ist sie insoweit nicht verpflichtet, an dem on such Interest Payment Date. Any such betreffenden Zinszahlungstag Zinsen zu election not to pay interest in whole or in zahlen. Eine Entscheidung zur part will not constitute a default of the Nichtzahlung begründet keinen Verzug Issuer or any other breach of its der Emittentin und keine anderweitige obligations under the Notes or for any Verletzung ihrer Verpflichtungen other purpose. aufgrund dieser Schuldverschreibungen oder für sonstige Zwecke.
Nach Maßgabe dieses § 4(1)(a) nicht Interest not due and payable in fällig gewordene Zinsen sind accordance with this § 4(1)(a) will aufgeschobene Zinszahlungen constitute deferred interest payments ("Aufgeschobene Zinszahlungen"). ("Deferred Interest Payments").
"Zinsperiode" bezeichnet jeden "Interest Period" means each period Zeitraum ab dem Zinslaufbeginn from and including the Interest (einschließlich) bis zum ersten Commencement Date to but excluding Zinszahlungstag (ausschließlich) und the first Interest Payment Date and nachfolgend ab jedem Zinszahlungstag thereafter from and including each (einschließlich) bis zu dem jeweils Interest Payment Date to but excluding nächstfolgenden Zinszahlungstag the next following Interest Payment (ausschließlich). Date.
(b) Aufgeschobene Zinszahlungen werden (b) Deferred Interest Payments will not bear nicht verzinst. interest.
122 (2) Freiwillige Zahlung von Aufgeschobenen (2) Optional Settlement of Deferred Interest Zinszahlungen. Die Emittentin ist berechtigt, Payments. The Issuer will be entitled to pay ausstehende Aufgeschobene Zinszahlungen outstanding Deferred Interest Payments in jederzeit insgesamt oder teilweise nach whole or in part at any time on giving not less Bekanntmachung an die Anleihegläubiger than 10 and not more than 15 Business Days' gemäß § 13 unter Einhaltung einer Frist von notice to the Noteholders in accordance with nicht weniger als 10 und nicht mehr als 15 § 13 which notice will specify (i) the (partial) Geschäftstagen nachzuzahlen, wobei eine amount of Deferred Interest Payments to be solche Bekanntmachung (i) den paid and (ii) the date fixed for such payment (gegebenenfalls anteiligen) Betrag an (the "Optional Settlement Date"). Aufgeschobenen Zinszahlungen, der gezahlt werden soll, und (ii) den für diese Zahlung festgelegten Termin (der "Freiwillige Nachzahlungstermin") enthalten muss.
(3) Pflicht zur Zahlung von Aufgeschobenen (3) Mandatory payment of Deferred Interest Zinszahlungen. Die Emittentin ist verpflichtet, Payments. The Issuer must pay outstanding ausstehende Aufgeschobene Zinszahlungen Deferred Interest Payments (in whole but not in insgesamt und nicht nur teilweise am nächsten part) on the next Mandatory Settlement Date. Pflichtnachzahlungstag zu zahlen.
"Pflichtnachzahlungstag" bezeichnet den "Mandatory Settlement Date" means the frühesten der folgenden Tage: earliest of:
(i) den Tag, der fünf Geschäftstage nach (i) the date falling five Business Days after dem Tag liegt, an dem ein the date on which a Compulsory Obligatorisches Nachzahlungsereignis Settlement Event has occurred; eingetreten ist;
(ii) den Tag, an dem die Emittentin oder die (ii) the date on which the Issuer or the Garantin vorgesehene Zinsen auf die Guarantor pays scheduled interest on the Schuldverschreibungen zahlt; Notes;
(iii) den Tag, an dem die Emittentin, die (iii) the date on which the Issuer, the Garantin oder eine Tochtergesellschaft Guarantor or any Subsidiary of the der Garantin eine Ausschüttung oder Guarantor pays any distribution or other sonstige Zahlung auf ein Gleichrangiges payment in respect of any Parity Wertpapier der Emittentin (mit Security of the Issuer (other than the Ausnahme der Schuldverschreibungen) Notes) or any Parity Security of the oder ein Gleichrangiges Wertpapier der Guarantor (other than the Guarantee in Garantin (mit Ausnahme der Garantie respect of the Notes); für die Schuldverschreibungen) zahlt;
(iv) den Tag, an dem die Emittentin, die (iv) the date on which the Issuer, the Garantin oder eine Tochtergesellschaft Guarantor or any Subsidiary of the der Garantin ein Gleichrangiges Guarantor redeems any Parity Security Wertpapier der Emittentin oder ein of the Issuer or any Parity Security of the Gleichrangiges Wertpapier der Garantin Guarantor, or the date falling five zurückzahlt, oder den Tag, der fünf Business Days after the date on which Geschäftstage nach dem Tag liegt, an the Issuer, the Guarantor or any dem die Emittentin, die Garantin oder Subsidiary of the Guarantor repurchases eine Tochtergesellschaft der Emittentin or otherwise acquires (in each case
123 oder der Garantin ein Gleichrangiges directly or indirectly) any Parity Security Wertpapier der Emittentin oder ein of the Issuer or any Parity Security of the Gleichrangiges Wertpapier der Garantin Guarantor; zurückkauft oder anderweitig erwirbt (jeweils direkt oder indirekt);
(v) den Tag an dem die Emittentin oder die (v) the date on which the Issuer or the Garantin die Schuldverschreibungen Guarantor redeems the Notes in gemäß diesen Anleihebedingungen accordance with these Terms and zurückzahlt oder den Tag, an dem die Conditions, or the date on which the Emittentin, die Garantin oder eine Issuer, the Guarantor or any Subsidiary Tochtergesellschaft der Garantin of the Guarantor repurchases or (jeweils direkt oder indirekt) Schuldver- otherwise acquires (in each case directly schreibungen zurückkauft oder or indirectly) Notes; and anderweitig erwirbt; und
(vi) den Tag, an dem eine Entscheidung (vi) the date on which an order is made for hinsichtlich der Auseinandersetzung, the winding up, liquidation or Liquidation oder Auflösung der dissolution of the Issuer or the Guarantor Emittentin oder der Garantin ergeht (other than for the purposes of or (sofern dies nicht für die Zwecke oder pursuant to a merger, reorganisation or als Folge einer Verschmelzung, einer restructuring whilst solvent, where the Umstrukturierung oder Sanierung continuing entity assumes substantially geschieht, bei der die Emittentin bzw. all of the assets and obligations of the die Garantin noch zahlungsfähig ist und Issuer or the Guarantor), bei der die fortführende Gesellschaft im Wesentlichen alle Vermögenswerte und Verpflichtungen der Emittentin oder der Garantin übernimmt), mit der Maßgabe, dass provided that
(A) in dem vorgenannten Fall (ii) kein (A) in the case (ii) above no Mandatory Pflichtnachzahlungstag vorliegt, wenn Settlement Date occurs if the Issuer in sich die Emittentin gemäß § 4(1)(a) dazu accordance with § 4(1)(a) has elected to entscheidet, eine vorgesehene defer the scheduled payment of interest Zinszahlung nur teilweise auszusetzen, only in part, and the Issuer or the und die Emittentin oder die Garantin den Guarantor pays the proportion of that nicht ausgesetzten Anteil an den scheduled interest that the Issuer does vorgesehenen Zinsen zahlt; not defer;
(B) in dem vorgenannten Fall (iii) kein (B) in the case (iii) above no Mandatory Pflichtnachzahlungstag vorliegt, wenn Settlement Date occurs if any partial gleichzeitig mit einer teilweisen payment of deferred interest or of arrears Nachzahlung von Aufgeschobenen of interest on a Parity Security of the Zinszahlungen auf die Issuer (other than the Notes) and/or a Schuldverschreibungen gemäß § 4(2) Parity Security of the Guarantor (other auch aufgeschobene Zinszahlungen oder than the Guarantee in respect of the Zinsrückstände auf ein Gleichrangiges Notes) is made concurrently with a Wertpapier der Emittentin (mit partial settlement of any Deferred Ausnahme der Schuldverschreibungen) Interest Payments on the Notes in oder ein Gleichrangiges Wertpapier der accordance with § 4(2), provided that Garantin (mit Ausnahme der Garantie such partial payment of deferred interest
124 für die Schuldverschreibungen) or of arrears of interest on a Parity teilweise nachgezahlt werden, Security of the Issuer (other than the vorausgesetzt, der anteilige Betrag der Notes) or Parity Security of the teilweisen Nachzahlung aufgeschobener Guarantor (other than the Guarantee in Zinszahlungen oder Zinsrückstände auf respect of the Notes) does not exceed the ein Gleichrangiges Wertpapier der proportion of the then outstanding Emittentin (mit Ausnahme der Schuld- Deferred Interest Payments on the Notes verschreibungen) oder ein that is being settled in accordance with Gleichrangiges Wertpapier der Garantin § 4(2); (mit Ausnahme der Garantie für die Schuldverschreibungen) entspricht höchstens dem Anteil an den dann ausstehenden Aufgeschobenen Zinszahlungen auf die Schuldverschreibungen, der gemäß § 4(2) nachgezahlt wird;
(C) in den vorgenannten Fällen (iii) und (iv) (C) in the cases (iii) and (iv) above no kein Pflichtnachzahlungstag vorliegt, Mandatory Settlement Date occurs if the wenn die Emittentin, die Garantin oder Issuer or the Guarantor or the relevant die betreffende Tochtergesellschaft der Subsidiary of the Guarantor is obliged Garantin nach Maßgabe der under the terms and conditions of such Bedingungen des betreffenden Parity Security of the Issuer or such Gleichrangigen Wertpapiers der Parity Security of the Guarantor or under Emittentin oder des betreffenden applicable law to make such payment, Gleichrangigen Wertpapiers der such redemption, such repurchase or Garantin oder gesetzlich zu der Zahlung, such other acquisition; zu der Rückzahlung, zu dem Rückkauf oder zu dem anderweitigen Erwerb verpflichtet ist;
(D) in den vorgenannten Fällen (iv) und (v) (D) in the cases (iv) and (v) above no kein Pflichtnachzahlungstag vorliegt, Mandatory Settlement Date occurs if the wenn die Emittentin, die Garantin oder Issuer or the Guarantor or the relevant die betreffende Tochtergesellschaft der Subsidiary of the Guarantor repurchases Garantin (jeweils direkt oder indirekt) or otherwise acquires (in each case ein Gleichrangiges Wertpapier der directly or indirectly) any Parity Security Emittentin oder ein Gleichrangiges of the Issuer or any Parity Security of the Wertpapier der Garantin oder Schuld- Guarantor or any Notes (in whole or in verschreibungen (insgesamt oder part) in a public tender offer or public teilweise) nach einem öffentlichen exchange offer at a consideration per Rückkaufangebot oder öffentlichen Parity Security of the Issuer or per Parity Umtauschangebot mit einer unter dem Security of the Guarantor or, as Nennwert liegenden Gegenleistung je applicable, per Note below its par value; Gleichrangigem Wertpapier der and Emittentin oder je Gleichrangigem Wertpapier der Garantin bzw. je Schuldverschreibung zurückkauft oder anderweitig erwirbt; und
(E) in den vorgenannten Fällen (iii), (iv) und (E) in the cases (iii), (iv) and (v) above no (v) kein Pflichtnachzahlungstag vorliegt, Mandatory Settlement Date occurs if the
125 wenn die betreffenden Zahlungen auf relevant payments on, or in respect of, oder in Bezug auf ein Gleichrangiges any Parity Security of the Issuer or any Wertpapier der Emittentin oder ein Parity Security of the Guarantor are Gleichrangiges Wertpapier der Garantin Intra-Group Payments. Konzerninterne Zahlungen sind.
Dabei gilt Folgendes: Where:
"Konzerninterne Zahlungen" sind "Intra-Group Payments" means Zahlungen, die von der Garantin an eine payments made by the Guarantor to a Tochtergesellschaft der Garantin Subsidiary of the Guarantor (including (einschließlich der Emittentin) und/oder the Issuer) and/or by a Subsidiary of the von einer Tochtergesellschaft der Guarantor (including the Issuer) to the Garantin (einschließlich der Emittentin) Guarantor and/or by one Subsidiary of an die Garantin und/oder von einer the Guarantor to another. Tochtergesellschaft der Garantin an eine andere erfolgen.
Ein "Obligatorisches Nachzahlungsereignis" "Compulsory Settlement Event" means any of bezeichnet vorbehaltlich des nachstehenden the following events, subject to the provisions Satzes 2 jedes der folgenden Ereignisse: in sentence 2 below:
(i) die Gesellschafterversammlung oder (i) the general meeting of shareholders ordentliche Hauptversammlung (soweit (Gesellschafterversammlung) or zum relevanten Zeitpunkt einschlägig) ordinary general meeting of der Garantin beschließt, eine Dividende, shareholders (ordentliche Hauptver- sonstige Ausschüttung oder sonstige sammlung) (if existing at the relevant Zahlung auf einen Gesellschaftsanteil point of time) of the Guarantor resolves oder eine Aktie einer beliebigen Gattung on the payment of any dividend, other der Garantin zu leisten; distribution or other payment on any company share or share of any class of the Guarantor;
(ii) die Emittentin, die Garantin oder eine (ii) the Issuer, the Guarantor or any Tochtergesellschaft der Garantin zahlt Subsidiary of the Guarantor pays any eine Dividende, sonstige Ausschüttung dividend, other distribution or other oder sonstige Zahlung auf ein payment in respect of any Junior Nachrangiges Wertpapier der Emittentin Security of the Issuer or any Junior oder ein Nachrangiges Wertpapier der Security of the Guarantor (other than a Garantin (mit Ausnahme einer dividend, distribution or payment which Dividende, Ausschüttung oder Zahlung is made in the form of company shares in Form von Gesellschaftsanteilen oder or shares of any class of the Guarantor); Aktien einer beliebigen Gattung der or Garantin); oder
(iii) die Emittentin, die Garantin oder eine (iii) the Issuer, the Guarantor or any Tochtergesellschaft der Garantin Subsidiary of the Guarantor redeems, (jeweils direkt oder indirekt) zahlt oder repurchases or otherwise acquires (in kauft ein Nachrangiges Wertpapier der each case directly or indirectly) any Emittentin oder ein Nachrangiges Junior Security of the Issuer or any Wertpapier der Garantin zurück oder Junior Security of the Guarantor. erwirbt es auf andere Weise.
126 In den vorgenannten Fällen (i) und (ii) tritt The cases (i) and (ii) above are subject to the jedoch kein Obligatorisches Nachzahlungs- proviso that no Compulsory Settlement Event ereignis ein, wenn die Garantin vor dem occurs if, prior to the date of a Qualified IPO, Zeitpunkt eines Qualifizierten IPO aus einem the Guarantor pays, from a balance sheet profit Bilanzgewinn einen nachzahlbaren (Bilanzgewinn), a cumulative advanced Vorausgewinnanteil auf dividend (nachzahlbarer Vorausgewinnanteil) Vorzugsgeschäftsanteile oder Vorzugsaktien in respect of any preference company shares (soweit zum relevanten Zeitpunkt einschlägig) (Vorzugsgeschäftsanteile) or preference shares der Garantin ausschüttet. (Vorzugsaktien) (if existing at the relevant point of time) of the Guarantor.
In den vorgenannten Fällen (ii) und (iii) tritt The cases (ii) and (iii) above are subject to the jedoch kein Obligatorisches Nachzahlungs- proviso that no Compulsory Settlement Event ereignis ein, wenn occurs if
(A) die Emittentin, die Garantin oder die (A) the Issuer, the Guarantor or the relevant betreffende Tochtergesellschaft der Subsidiary of the Guarantor is obliged Garantin nach Maßgabe der under the terms and conditions of such Bedingungen des betreffenden Junior Security of the Issuer or such Nachrangigen Wertpapiers der Junior Security of the Guarantor to make Emittentin oder des betreffenden such payment, such redemption, such Nachrangigen Wertpapiers der Garantin repurchase or such other acquisition; zu der Zahlung, zu der Rückzahlung, zu dem Rückkauf oder zu dem anderweitigen Erwerb verpflichtet ist;
(B) die Emittentin, die Garantin oder die (B) the Issuer, the Guarantor or the relevant betreffende Tochtergesellschaft der Subsidiary of the Guarantor repurchases Garantin einen Geschäftsanteil bzw. or otherwise acquires (in each case Aktie einer beliebigen Gattung der directly or indirectly) any company Garantin oder ein Nachrangiges share or share of any class of the Wertpapier der Emittentin oder ein Guarantor or any Junior Security of the Nachrangiges Wertpapier der Garantin Issuer or any Junior Security of the nach Maßgabe eines bestehenden oder Guarantor pursuant to the obligations of zukünftigen Aktienoptions- oder the Guarantor under any existing or Aktienbeteiligungsprogramms oder future stock option or stock ownership ähnlichen Programms für Mitglieder des programme or similar programme for Vorstands oder des Aufsichtsrats (oder, any members of the executive board or im Falle verbundener Unternehmen, supervisory board (or, in the case of ähnlicher Gremien) oder Mitarbeiter der affiliates, comparable boards) or Garantin oder mit ihr verbundener employees of the Guarantor or any of its Unternehmen (jeweils direkt oder affiliates; indirekt) zurückkauft oder anderweitig erwirbt;
(C) die betreffenden Zahlungen auf oder in (C) the relevant payments on, or in respect Bezug auf ein Nachrangiges Wertpapier of, any Junior Security of the Issuer or der Emittentin oder ein Nachrangiges any Junior Security of the Guarantor are Wertpapier der Garantin Konzerninterne Intra-Group Payments; or Zahlungen sind; oder
(D) Vorzugsgeschäftsanteile oder (D) any preference company shares Vorzugsaktien (soweit zum relevanten (Vorzugsgeschäftsanteile) or preference
127 Zeitpunkt einschlägig) der Garantin in shares (Vorzugsaktien) (if existing at the Stammgeschäftsanteile oder relevant point of time) of the Guarantor Stammaktien (soweit zum relevanten are converted to ordinary company Zeitpunkt einschlägig) der Garantin shares (Stammgeschäftsanteile) or umgewandelt werden. ordinary shares (Stammaktien) (if existing at the relevant point of time) of the Guarantor.
§ 5 § 5 ZAHLUNGEN PAYMENTS
(1) Zahlungen von Kapital und Zinsen. Zahlungen (1) Payment of Principal and Interest. Payments von Kapital in Bezug auf die Schuldverschrei- of principal in respect of the Notes shall be bungen erfolgen nach Maßgabe des made, subject to § 5(2) below, to the Clearing nachstehenden § 5(2) an das Clearingsystem System or to its order for credit to the accounts oder dessen Order zur Gutschrift auf den of the relevant account holders of the Clearing Konten der jeweiligen Kontoinhaber des System. Clearingsystems.
Die Zahlung von Zinsen in Bezug auf die Payments of interest in respect of the Notes Schuldverschreibungen erfolgt nach Maßgabe shall be made, subject to § 5(2) below, to the des nachstehenden § 5(2) an das Clearing System or to its order for credit to the Clearingsystem oder dessen Order zur accounts of the relevant account holders of the Gutschrift auf den Konten der jeweiligen Clearing System. Kontoinhaber des Clearingsystems.
Zahlungen von Zinsen in Bezug auf Payments of interest in respect of Notes Schuldverschreibungen, die durch die represented by the Temporary Global Note shall vorläufige Globalurkunde verbrieft sind, be made, subject to § 5(2), to the Clearing erfolgen nach Maßgabe von § 5(2) an das System or to its order for credit to the accounts Clearingsystem oder dessen Order zur of the relevant account holders of the Clearing Gutschrift auf den Konten der jeweiligen System, upon due certification as provided in Kontoinhaber des Clearingsystems, und zwar § 1(3)(b). nach ordnungsgemäßer Bescheinigung gemäß § 1(3)(b).
(2) Zahlungsweise. Vorbehaltlich geltender (2) Method of Payment. Subject to applicable steuerlicher und sonstiger gesetzlicher fiscal and other laws and regulations, payments Regelungen und Vorschriften erfolgen zu of amounts due in respect of the Notes shall be leistende Zahlungen auf die Schuldverschrei- made in Euro. bungen in Euro.
(3) Erfüllung. Die Emittentin bzw. die Garantin (3) Discharge. The Issuer or, as the case may be, wird durch Leistung der Zahlung an das the Guarantor shall be discharged by payment Clearingsystem oder dessen Order von ihrer to, or to the order of, the Clearing System. Zahlungspflicht befreit.
(4) Geschäftstagekonvention. Falls ein Fälligkeits- (4) Business Day Convention. If the due date for tag für die Zahlung von Kapital und/oder Zinsen any payment of principal and/or interest is not a kein Geschäftstag ist, erfolgt die Zahlung erst Business Day, the payment will be made only am nächstfolgenden Geschäftstag; die on the next Business Day. The Noteholders will Anleihegläubiger sind nicht berechtigt, Zinsen have no right to claim payment of any interest
128 oder eine andere Entschädigung wegen eines or other indemnity in respect of such delay in solchen Zahlungsaufschubs zu verlangen. payment.
§ 6 § 6 RÜCKZAHLUNG UND RÜCKKAUF REDEMPTION AND REPURCHASE
(1) Keine Endfälligkeit. Die Schuldverschreibun- (1) No Scheduled Redemption. The Notes have no gen haben keinen Endfälligkeitstag und werden, final maturity date and shall not be redeemed, außer gemäß den Bestimmungen in diesem § 6, except in accordance with the provisions set out nicht zurückgezahlt. in this § 6.
(2) Rückkauf. Die Emittentin, die Garantin oder (2) Repurchase. Subject to applicable laws, the eine Tochtergesellschaft der Garantin können, Issuer, the Guarantor or any Subsidiary of the soweit gesetzlich zulässig, jederzeit Schuldver- Guarantor may at any time purchase Notes in schreibungen auf dem freien Markt oder the open market or otherwise and at any price. anderweitig sowie zu jedem beliebigen Preis Such acquired Notes may be cancelled, held or kaufen. Derartig erworbene Schuldverschrei- resold. bungen können entwertet, gehalten oder wieder veräußert werden.
(3) Rückzahlung nach Wahl der Emittentin. (3) Redemption at the Option of the Issuer.
(a) Rückzahlung nach Wahl der Emittentin (a) Redemption at the Option of the Issuer at zu pari. Die Emittentin ist berechtigt, par. The Issuer may, upon giving notice durch Erklärung gemäß § 6(6) die in accordance with § 6(6), call the Notes Schuldverschreibungen (insgesamt und for redemption (in whole but not in part) nicht nur teilweise) mit Wirkung zu with effect as of any date during the jedem Tag während des Zeitraums ab period from and including 20 July 2028 dem 20. Juli 2028 (einschließlich) bis to and including the First Reset Date or zum Ersten Zinsanpassungstag with effect as of any Interest Payment (einschließlich) oder mit Wirkung zu Date thereafter. In the case such notice is jedem nachfolgenden Zinszahlungstag given, the Issuer will redeem the zurückzuzahlen. Im Falle einer solchen remaining Notes at the Principal Amount Erklärung hat die Emittentin die Schuld- plus any accrued and unpaid interest on verschreibungen am festgelegten the Notes to but excluding the date of Rückzahlungstermin zum Nennbetrag redemption and, for the avoidance of zuzüglich der bis zum Tag der doubt, any Deferred Interest Payments Rückzahlung in Bezug auf die Schuld- payable pursuant to § 4(3) on the verschreibungen aufgelaufenen, aber specified redemption date. noch nicht bezahlten Zinsen sowie, zur Klarstellung, sämtlicher gemäß § 4(3) fälligen Aufgeschobenen Zinszahlungen zurückzuzahlen.
(b) Rückzahlung nach Wahl der Emittentin (b) Redemption at the Option of the Issuer at zum Make-whole-Betrag. Die the Make-whole Amount. The Issuer Emittentin ist berechtigt, durch may, upon giving notice in accordance Erklärung gemäß § 6(6) die Schuldver- with § 6(6), call the Notes for schreibungen (insgesamt und nicht nur redemption (in whole but not in part) teilweise) mit Wirkung zu jedem Tag bis with effect as of any date prior to but zu dem 20. Juli 2028 (ausschließlich) excluding 20 July 2028. In the case such zurückzuzahlen. Im Falle einer solchen notice is given, the Issuer will redeem
129 Erklärung hat die Emittentin die Schuld- the remaining Notes at the Make-whole verschreibungen am festgelegten Amount plus any accrued and unpaid Rückzahlungstermin zum Make-whole- interest on the Notes to but excluding the Betrag zuzüglich der bis zum Tag der date of redemption and, for the Rückzahlung in Bezug auf die Schuld- avoidance of doubt, any Deferred verschreibungen aufgelaufenen, aber Interest Payments payable pursuant to noch nicht bezahlten Zinsen sowie, zur § 4(3) on the specified redemption date. Klarstellung, sämtlicher gemäß § 4(3) fälligen Aufgeschobenen Zinszahlungen zurückzuzahlen.
Der "Make-whole-Betrag" (welcher The "Make-whole Amount" (to be den Anleihegläubigern gemäß § 13 und notified to the Noteholders in der Hauptzahlstelle mitzuteilen ist) einer accordance with § 13 and to the Schuldverschreibung entspricht dem Principal Paying Agent) of a Note shall höheren der folgenden Beträge: be the higher of:
(i) dem Nennbetrag; oder (i) the Principal Amount; or
(ii) dem Abgezinsten Marktwert. (ii) the Present Value.
Der Make-whole-Betrag wird von der The Make-whole Amount shall be Make-whole-Berechnungsstelle, welche calculated by the Make-whole nach § 6(6) von der Emittentin Calculation Agent which shall be set bekanntzumachen ist, berechnet. forth in accordance with § 6(6).
Der "Abgezinste Marktwert" ist die The "Present Value" will be the sum of Summe aus
(i) dem vom Ersten (i) the Principal Amount per Note Zinsanpassungstag auf den für discounted from the First Reset die Rückzahlung festgelegten Date to the date fixed for Tag abgezinsten Nennbetrag je redemption; and Schuldverschreibung; und
(ii) den jeweils auf den für die (ii) the remaining interest payments Rückzahlung festgelegten Tag which would otherwise become abgezinsten Werten der due on each Interest Payment verbleibenden Zinszahlungen, Date falling after the date fixed die ansonsten an jedem for redemption to and including Zinszahlungstag nach dem für die the First Reset Date (excluding Rückzahlung festgelegten Tag any interest accrued to but bis zum Ersten excluding the date fixed for Zinsanpassungstag redemption), each discounted to (einschließlich) fällig werden the date fixed for redemption. würden (ausschließlich etwaiger, bis zum für die Rückzahlung festgelegten Tag (ausschließlich) aufgelaufener Zinsen).
Die Make-whole-Berechnungsstelle The Make-whole Calculation Agent will errechnet den Abgezinsten Marktwert calculate the Present Value in gemäß der Marktkonvention auf einer accordance with market convention on a Grundlage, die der Berechnung von basis which is consistent with the
130 Zinsen gemäß § 3 entspricht, wobei sie calculation of interest as set out in § 3, die Benchmark-Rendite zuzüglich using the Benchmark Yield plus 0.50 %. 0,50 % zugrunde legt.
Die "Benchmark-Rendite" bezeichnet The "Benchmark Yield" means the die am Rückzahlungs-Berechnungstag yield at the Redemption Calculation bestehende Rendite der entsprechenden Date of the corresponding euro Euro-Referenz-Anleihe der denominated benchmark debt security of Bundesrepublik Deutschland fällig am the Federal Republic of Germany due 15. August 2028 15 August 2028 (ISIN: DE0001102457) abgelesen, oder (ISIN: DE0001102457), or as derived or wie von einer anderen, durch die Make- published by such other source as whole-Berechnungsstelle festgelegten, determined by the Make-whole Quelle hergeleitet oder veröffentlicht Calculation Agent, and if such yield is oder, sollte die Rendite zu diesem not available at that time, the Benchmark Zeitpunkt nicht verfügbar sein, Yield shall be the yield of a substitute bezeichnet die Benchmark-Rendite eine benchmark security chosen by the Make- ersetzende Referenzanleihe, die von der whole Calculation Agent, having a Make-whole-Berechnungsstelle maturity comparable to the remaining festgesetzt wird, mit einer Laufzeit, die term of the Note to the First Reset Date, mit der verbleibenden Restlaufzeit der and that would be used at the time of Schuldverschreibung bis zum Ersten selection and in accordance with Zinsanpassungstag vergleichbar ist, und customary financial practice in the die im Zeitpunkt der international debt capital markets, in Auswahlentscheidung und entsprechend pricing new issues of corporate debt der üblichen Finanzmarktpraxis in den securities of comparable maturity to the internationalen Anleihekapitalmärkten First Reset Date. zur Preisbestimmung bei Neuemissionen von Unternehmensanleihen mit einer bis zum Ersten Zinsanpassungstag der Schuldverschreibung vergleichbaren Laufzeit verwendet werden würde.
"Rückzahlungs-Berechnungstag" ist "Redemption Calculation Date" means der sechste Geschäftstag vor dem für die the sixth Business Day prior to the date Rückzahlung festgelegten Tag. fixed for redemption.
(4) Rückzahlung nach Eintritt eines Gross-up- (4) Redemption following a Gross-up Event, a Tax Ereignisses, eines Steuerereignisses, eines Event, an Accounting Event or a Rating Agency Rechnungslegungsereignisses oder eines Event or in case of minimal outstanding Ratingagenturereignisses oder bei geringem aggregate principal amount. ausstehenden Gesamtnennbetrag.
(a) Gross-up-Ereignis, geringer (a) Gross-up Event, minimal outstanding ausstehender Gesamtnennbetrag. aggregate principal amount.
Wenn If
(i) ein Gross-up-Ereignis eintritt; (i) a Gross-up Event occurs; or oder
(ii) die Emittentin, die Garantin oder (ii) the Issuer, the Guarantor or any eine Tochtergesellschaft Schuld- Subsidiary has purchased or
131 verschreibungen im Volumen redeemed Notes equal to or in von 75 % oder mehr des excess of 75 per cent. of the ursprünglich begebenen aggregate Principal Amount of Gesamtnennbetrages der Schuld- the Notes initially issued, verschreibungen erworben oder zurückgezahlt hat, dann ist die Emittentin berechtigt, durch the Issuer may, upon giving notice in Erklärung gemäß § 6(6) die Schuldver- accordance with § 6(6), call the Notes schreibungen (insgesamt und nicht nur for redemption (in whole but not in part) teilweise) jederzeit mit Wirkung zu dem at any time with effect as of the date in der Erklärung für die Rückzahlung fixed for redemption in the notice. In the festgelegten Tag zurückzuzahlen. Im case such notice is given, the Issuer will Falle einer solchen Erklärung hat die redeem the remaining Notes on the Emittentin die Schuldverschreibungen specified redemption date at the am festgelegten Rückzahlungstermin Principal Amount plus any accrued and zum Nennbetrag zuzüglich der bis zum unpaid interest on the Notes to but Tag der Rückzahlung in Bezug auf die excluding the date of redemption and, Schuldverschreibungen aufgelaufenen, for the avoidance of doubt, any Deferred aber noch nicht bezahlten Zinsen sowie, Interest Payments payable pursuant to zur Klarstellung, sämtlicher gemäß § 4(3). § 4(3) fälligen Aufgeschobenen Zinszahlungen zurückzuzahlen.
Ein "Gross-up-Ereignis" tritt ein, wenn A "Gross-up Event" will occur if on or der Emittentin oder der Garantin an oder after the date of issue of the Notes an nach dem Tag der Begebung der Schuld- opinion of a recognised law firm has verschreibungen ein Gutachten einer been delivered to the Issuer or the anerkannten Anwaltskanzlei vorliegt Guarantor (and the Issuer or the (und die Emittentin oder die Garantin Guarantor has provided the Paying der Zahlstelle eine Kopie davon gibt), Agent with a copy thereof) stating that aus dem hervorgeht, dass die Emittentin the Issuer or the Guarantor has or will oder die Garantin aufgrund einer an oder become obliged by a legislative body, a nach dem Tag der Begebung der Schuld- court or any authority to pay Additional verschreibungen in Kraft tretenden Amounts pursuant to § 8 as a result of Gesetzesänderung (oder einer an oder any change in or amendment to the laws nach dem Tag der Begebung der Schuld- (or any rules or regulations thereunder) verschreibungen in Kraft tretenden of the country in which the Issuer has its Änderung von darunter erlassenen domicile or tax residence, or the country Bestimmungen und Vorschriften) des in which the Guarantor has its domicile Landes, in dem die Emittentin ihren or tax residence or any of their respective Hauptsitz oder Steuersitz hat, oder des political subdivisions or taxing Landes, in dem die Garantin ihren authorities, or as a result of any change Hauptsitz oder Steuersitz hat, oder einer in, or amendment to, any official deren jeweiliger Gebietskörperschaften interpretation or application of those oder Behörden oder als Folge einer an laws or rules or regulations by any oder nach dem Tag der Begebung der legislative body, court, governmental Schuldverschreibungen in Kraft agency or regulatory authority tretenden Änderung der offiziellen (including the enactment of any Auslegung oder Anwendung dieser legislation and the publication of any Gesetze, Bestimmungen oder judicial decision or regulatory Vorschriften durch eine gesetzgebende determination), in each case with such Körperschaft, ein Gericht oder eine change or amendment becoming
132 Aufsichtsbehörde (einschließlich des effective on or after the date of issue of Erlasses von Gesetzen sowie der the Notes, and that obligation cannot be Bekanntmachung gerichtlicher oder avoided by the Issuer or the Guarantor aufsichtsrechtlicher Entscheidungen) taking such reasonable measures it verpflichtet ist oder verpflichtet sein (acting in good faith) deems appropriate. wird, zusätzliche Beträge gemäß § 8 zu zahlen und die Emittentin oder die Garantin diese Verpflichtung nicht abwenden kann, indem sie zumutbare Maßnahmen ergreift, die sie nach Treu und Glauben für angemessen hält.
Die Bekanntmachung der Rückzahlung No such notice of redemption following nach Eintritt eines Gross-up-Ereignisses the occurrence of a Gross-up Event may darf nicht früher als 90 Tage vor dem be given earlier than 90 days prior to the Tag erfolgen, an dem die Emittentin earliest date on which the Issuer would erstmals verpflichtet wäre, zusätzliche be for the first time obliged to pay the Beträge gemäß § 8 zu zahlen. Additional Amounts pursuant to § 8.
(b) Ratingagenturereignis, (b) Rating Agency Event, Accounting Event, Rechnungslegungsereignis, Tax Event. Steuerereignis.
Wenn If
(i) ein Ratingagenturereignis (i) a Rating Agency Event occurs; or eintritt; oder
(ii) ein Rechnungslegungsereignis (ii) an Accounting Event occurs; or eintritt; oder
(iii) ein Steuerereignis eintritt, (iii) a Tax Event occurs,
dann ist die Emittentin berechtigt, durch the Issuer may, upon giving notice in Erklärung gemäß § 6(6) die Schuldver- accordance with § 6(6), call the Notes schreibungen (insgesamt und nicht nur for redemption (in whole but not in part) teilweise) jederzeit mit Wirkung zu dem at any time with effect as of the date in der Erklärung für die Rückzahlung fixed for redemption in the notice. In the festgelegten Tag zurückzuzahlen. Im case such notice is given, the Issuer will Falle einer solchen Erklärung hat die redeem the remaining Notes on the Emittentin die Schuldverschreibungen specified redemption date (i) at 101 per am festgelegten Rückzahlungstermin cent. of the Principal Amount if the (i) zu 101 % des Nennbetrages, falls die redemption occurs prior to 20 July 2028 Rückzahlung vor dem 20. Juli 2028 and (ii) at the Principal Amount if the erfolgt, und (ii) zum Nennbetrag, falls redemption occurs on or after 20 July die Rückzahlung an oder nach dem 2028, in each case plus any accrued and 20. Juli 2028 erfolgt, jeweils zuzüglich unpaid interest on the Notes to but der bis zum Tag der Rückzahlung in excluding the date of redemption and, Bezug auf die Schuldverschreibungen for the avoidance of doubt, any Deferred aufgelaufenen, aber noch nicht bezahlten Interest Payments payable pursuant to Zinsen sowie, zur Klarstellung, § 4(3). sämtlicher gemäß § 4(3) fälligen Auf-
133 geschobenen Zinszahlungen, zurückzuzahlen.
Ein "Ratingagenturereignis" tritt ein, A "Rating Agency Event" will occur if wenn entweder: either:
(x) eine Ratingagentur eine (x) any Rating Agency publishes any Änderung der Methodologie (wie Methodology Change (as defined nachstehend definiert) below), as a result of which a veröffentlicht, wodurch ein Loss in Equity Credit (as defined Verlust der Eigenkapitalan- below) for the Notes occurs; or rechnung (wie nachstehend definiert) der Schuldverschrei- bungen eintritt; oder
(y) eine Ratingagentur eine (y) any Rating Agency publishes any Änderung der Methodologie Methodology Change which veröffentlicht, die zu einem would have resulted in a Loss in Verlust der Eigenkapital- Equity Credit for the Notes had anrechnung der Schuldverschrei- the "equity credit" attributed to bungen geführt hätte, wenn sich the Notes not changed previously die den Schuldverschreibungen because the Notes had been zugeordnete "Eigenkapitalan- partially or fully refinanced; or rechnung" nicht bereits zuvor geändert hätte, weil die Schuld- verschreibungen bereits insge- samt oder teilweise refinanziert worden sind; oder
(z) die Garantin eine schriftliche (z) the Guarantor has received, and Bestätigung von einer has provided the Principal Paying Ratingagentur erhalten und diese Agent with a copy of, a written an die Hauptzahlstelle in Kopie confirmation from any Rating weitergegeben hat, welche Agency that due to a besagt, dass aufgrund einer Methodology Change a Loss in Änderung der Methodologie ein Equity Credit for the Notes has Verlust der occurred. Eigenkapitalanrechnung der Schuldverschreibungen eingetreten ist.
Die Emittentin informiert die The Issuer will inform the Noteholders Anleihegläubiger über das of such Rating Agency Event in the Ratingagenturereignis in der Mitteilung notice of redemption referred to above. der Rückzahlung (wie oben beschrieben).
Dabei gilt Folgendes: Where:
"Änderung der Methodologie" "Methodology Change" means any bezeichnet jede Ergänzung, Klarstellung amendment to, clarification of, or a oder Änderung in der Methodologie, die change in the methodology that beschreibt, inwieweit ein Wertpapier describes the extent to which a security insgesamt oder teilweise dem fully or partially resembles common
134 Eigenkapital ähnelt bzw. diesem equity (the "Methodology") or the entspricht (die "Methodologie") oder interpretation of the Methodology. der Interpretation der Methodologie.
"Ratingagentur" bezeichnet jeweils "Rating Agency" means each of Moody's und Fitch, wobei "Moody's" Moody's and Fitch, where "Moody's" die Moody's Deutschland GmbH oder means Moody's Deutschland GmbH or eine ihrer Nachfolgegesellschaften any of its successors, "Fitch" means bezeichnet, "Fitch" die Fitch Ratings Fitch Ratings Limited or any of its Limited oder eine ihrer successors, or any other rating agency of Nachfolgegesellschaften bezeichnet, international standing from which the oder eine andere durch die Emittentin Issuer and/or the Guarantor receives a oder die Garantin bezeichnete solicited rating, as specified from time to Ratingagentur mit internationaler time by the Issuer or the Guarantor and, Anerkennung, von der die Emittentin in each case their respective subsidiaries und/oder die Garantin ein beauftragtes or successors. Rating erhält, sowie jeweils ihre Tochter- oder Nachfolgegesellschaften.
Ein "Verlust der Eigenkapitalan- A "Loss in Equity Credit" occurs rechnung" tritt ein,
(x) wenn die Schuldverschreibungen (x) if the Notes are no longer eligible nicht länger ganz oder teilweise (in whole or in part) for the same in derselben oder einer höheren or a higher category of "equity Kategorie der "Eigenkapitalan- credit" (or such similar rechnung" (oder einer vergleich- nomenclature as may be used by baren Beschreibung, die von a Rating Agency from time to einer Ratingagentur von Zeit zur time to describe the degree to Zeit genutzt wird, um zu which the terms of an instrument beschreiben in wieweit die Be- are supportive of the Issuer's dingungen eines Instruments die senior obligations) assigned to vorrangigen Verbindlichkeiten the Notes on the date on which der Emittentin unterstützen) such Rating Agency assigned to zugeordnet sind wie an dem Tag, the Notes such category of an dem diese Ratingagentur die "equity credit" for the first time; Schuldverschreibungen erstmals or dieser Kategorie der "Eigen- kapitalanrechnung" zugeordnet hat; oder
(y) wenn die Zeitspanne, während (y) if the period of time during which der eine Ratingagentur die a Rating Agency attributes to the Schuldverschreibungen einer Notes a particular category of bestimmten Kategorie der "Ei- "equity credit" would be genkapitalanrechnung" zuordnet, shortened as compared to the verkürzt wird gegenüber der period of time for which such Zeitspanne, für welche diese Rating Agency did attribute to the Ratingagentur die Schuldver- Notes that category of "equity schreibungen dieser Kategorie credit" on the date on which such der "Eigenkapitalanrechnung" an Rating Agency attributed to the dem Tag zugeordnet hat, an dem diese Ratingagentur die Schuld-
135 verschreibungen erstmals dieser Notes such category of "equity Kategorie der "Eigenkapitalan- credit" for the first time. rechnung" zugeordnet hat.
Ein "Rechnungslegungsereignis" liegt An "Accounting Event" will occur if a vor, wenn eine anerkannte Wirtschafts- recognised accountancy firm, acting prüfungsgesellschaft, die im Auftrag der upon instructions of the Issuer or the Emittentin oder Garantin handelt, der Guarantor, has delivered an opinion to Emittentin oder der Garantin ein the Issuer or the Guarantor, stating that Gutachten übermittelt, wonach aufgrund as a result of a change in accounting einer Änderung der Rechnungs- principles (or the application thereof) legungsgrundsätze oder deren (the "Accounting Change") which has Anwendung (die "Rechnungslegungs- been officially adopted on or after the änderung"), die am oder nach dem Tag date of issue of the Notes (such date, the der Begebung der Schuldverschreibun- "Change Date") the funds raised gen offiziell übernommen worden ist through the issuance of the Notes must (der Tag der Übernahme der Rech- not or must no longer be recorded as nungslegungsänderung, nachstehend der "equity" pursuant to the International "Änderungstag") die durch die Financial Reporting Standards ("IFRS") Ausgabe der Schuldverschreibungen or any other national or international beschafften Gelder nicht oder nicht mehr accounting standards that may replace als "Eigenkapital" gemäß den IFRS for the purposes of drawing up the International Financial Reporting consolidated financial statements of the Standards ("IFRS") bzw. anderen Guarantor. nationalen oder internationalen Rechnungslegungsstandards, die die Garantin für die Erstellung ihrer konsolidierten Abschlüsse anstelle der IFRS anwenden kann, ausgewiesen werden dürfen.
Der Zeitraum, in dem die Emittentin die The period during which the Issuer may Rückzahlung der Schuldverschreibun- notify the redemption of the Notes as a gen infolge des Eintretens eines result of the occurrence of an Rechnungslegungsereignisses mitteilen Accounting Event shall start on the kann, beginnt an dem Änderungstag. Zur Change Date. For the avoidance of Klarstellung, diese Frist umfasst jede doubt, such period shall include any Übergangszeit zwischen dem Tag, an transitional period between the date on dem die Rechnungslegungsänderung which the Accounting Change is offiziell übernommen wird, und dem officially published and the date on Tag, an dem sie in Kraft tritt. which it comes into effect.
Ein "Steuerereignis" liegt vor, wenn an A "Tax Event" will occur if on or after oder nach dem Tag der Begebung der the date of issue of the Notes an opinion Schuldverschreibungen der Emittentin of a recognised law firm has been oder der Garantin ein Gutachten einer delivered to the Issuer or the Guarantor anerkannten Anwaltskanzlei vorliegt (and the Issuer or the Guarantor has (und die Emittentin oder die Garantin provided the Paying Agent with a copy der Zahlstelle eine Kopie davon gibt), thereof) stating that, as a result of any aus dem hervorgeht, dass aufgrund einer change in, or amendment to, the laws (or an oder nach dem Tag der Begebung der any rules or regulations thereunder) of Schuldverschreibungen in Kraft the country in which the Issuer has its tretenden Gesetzesänderung (oder einer domicile or tax residence, or the country
136 an oder nach dem Tag der Begebung der in which the Guarantor has its domicile Schuldverschreibungen in Kraft or tax residence or any of their respective tretenden Änderung von darunter political subdivisions or taxing erlassenen Bestimmungen und authorities, or as a result of any change Vorschriften) des Landes, in dem die in, or amendment to, any official Emittentin ihren Hauptsitz oder interpretation or application of any such Steuersitz hat oder des Landes, in dem laws, rules or regulations by any die Garantin ihren Hauptsitz oder legislative body, court, governmental Steuersitz hat, oder einer deren agency or regulatory authority jeweiliger Gebietskörperschaften oder (including the enactment of any Steuerbehörden, oder als Folge einer an legislation and the publication of any oder nach dem Tag der Begebung der judicial decision or regulatory Schuldverschreibungen in Kraft determination), in each case with such tretenden Änderung der offiziellen change or amendment becoming Auslegung oder Anwendung solcher effective on or after the date of issue of Gesetze, Bestimmungen oder the Notes, the interest expense in respect Vorschriften durch eine gesetzgebende of the Notes is no longer, or will no Körperschaft, ein Gericht, eine longer be, fully deductible by the Issuer Regierungsstelle oder eine or the Guarantor for income tax Aufsichtsbehörde (einschließlich des purposes, and that risk cannot be avoided Erlasses von Gesetzen sowie der by the Issuer or the Guarantor taking Bekanntmachung gerichtlicher oder such reasonable measures as it (acting in aufsichtsrechtlicher Entscheidungen), good faith) deems appropriate. der Zinsaufwand aus den Schuldver- schreibungen von der Emittentin oder der Garantin nicht mehr für Zwecke der Ertragsteuer voll abzugsfähig ist bzw. nicht mehr voll abzugsfähig sein wird und die Emittentin oder die Garantin dieses Risiko nicht abwenden kann, indem sie zumutbare Maßnahmen ergreift, die sie nach Treu und Glauben für angemessen hält.
(5) Kündigungsrecht der Emittentin nach Eintritt (5) Issuer Call Right following a Change of Control eines Kontrollwechselereignisses. Event.
(a) Wenn ein Kontrollwechsel-Ereignis (a) If a Change of Control Event (as defined (wie in § 6(5)(c) definiert) eintritt, hat in § 6(5)(c)) occurs, the Issuer will, as die Emittentin sobald wie möglich, soon as practicable, after becoming nachdem sie Kenntnis davon erhalten aware thereof fix the Change of Control hat, den Tag, an dem die Transaktion, Effective Date (as defined in § 6(5)(c)) die den Kontrollwechsel bewirkt, and give notice in accordance with § 13 vollzogen worden ist (der "Stichtag"), of the date on which the transaction that den Kontrollwechsel-Stichtag (wie in constitutes the Change of Control has § 6(5)(c) definiert) zu bestimmen und taken effect (the "Record Date"), the das Kontrollwechsel-Ereignis und den Change of Control Event and the Change Kontrollwechsel-Stichtag gemäß § 13 of Control Effective Date (the "Change bekannt zu machen (die of Control Notice"). "Kontrollwechsel-Mitteilung").
137 (b) Wenn ein Kontrollwechsel-Ereignis (b) If a Change of Control Event occurs, the eintritt, ist die Emittentin berechtigt, die Issuer may call and redeem the Notes (in Schuldverschreibungen (insgesamt, whole but not in part) with effect as of jedoch nicht teilweise) durch Erklärung the Change of Control Effective Date gemäß dem nachstehenden Absatz mit upon giving notice in accordance with Wirkung zu dem Kontrollwechsel- the following paragraph. Stichtag zu kündigen und zurückzuzahlen.
Die Emittentin kann ihr Recht zur The Issuer may give notice to the Rückzahlung gemäß diesem § 6(5)(b) Noteholders within not more than five durch eine Bekanntmachung an die Business Days after publication of the Anleihegläubiger gemäß § 13 innerhalb Change of Control Notice in accordance einer Frist von nicht mehr als fünf with § 13 of a redemption pursuant to Geschäftstagen nach Bekanntmachung this § 6(5)(b). Such notice may be given der Kontrollwechsel-Mitteilung simultaneously with the Change of ausüben. Diese Bekanntmachung kann Control Notice. auch zeitgleich mit der Kontrollwechsel- Mitteilung erfolgen.
Im Falle einer solchen Erklärung ist die In this case the Issuer shall redeem on Emittentin verpflichtet, die Schuldver- the Change of Control Effective Date schreibungen am Kontrollwechsel- each Note at its Principal Amount plus Stichtag zum Nennbetrag zuzüglich der any accrued and unpaid interest on the bis zum Kontrollwechsel-Stichtag Notes to but excluding the Change of (ausschließlich) in Bezug auf die Control Effective Date and, for the Schuldverschreibungen aufgelaufenen, avoidance of doubt, any Deferred aber noch nicht bezahlten Zinsen sowie, Interest Payments payable pursuant to zur Klarstellung, sämtlicher gemäß § 4(3) on the specified redemption date. § 4(3) fälligen Aufgeschobenen Zinszahlungen zurückzuzahlen.
(c) Ein "Kontrollwechsel-Ereignis" gilt (c) A "Change of Control Event" shall be jedes Mal als eingetreten, wenn deemed to have occurred at each time if
(i) nach dem Begebungstag der (i) a Change of Control (as defined Schuldverschreibungen ein below) occurs after the issue date Kontrollwechsel (wie of the Notes; and nachstehend definiert) eingetreten ist; und
(ii) ein Negatives Ratingereignis (ii) a Negative Rating Event (as (wie in § 6(5)(d) definiert) defined in § 6(5)(d) occurs after eintritt, und zwar nach Eintritt the occurrence and, in the cases des Kontrollwechsels bzw. in den of § 6(5)(d)(i)(B) and Fällen gemäß § 6(5)(d)(i)(B) und § 6(5)(d)(i)(C) below, as a result § 6(5)(d)(i)(C), aufgrund des of the Change of Control. Kontrollwechsels.
Dabei gilt Folgendes: Where
"Kontrollwechsel" bedeutet, dass "Change of Control" means
138 (i) an oder nach dem Begebungstag (i) on or after the issue date of the der Schuldverschreibungen, aber Notes but prior to the date of a vor dem Zeitpunkt eines Qualified IPO, BASF SE, Qualifizierten IPO die BASF SE, Ludwigshafen am Rhein, Ludwigshafen am Rhein, Germany ("BASF") and Deutschland ("BASF") und die Letterone Holdings S.A., Letterone Holdings S.A., Luxembourg ("Letterone Luxemburg ("Letterone Holdings") (whether directly or Holdings") (ob unmittelbar oder indirectly through any person) mittelbar über irgendeine Person) together cease to hold zusammen nicht mehr beneficially a minimum of 51 per wirtschaftliche Eigentümer von cent. of the ordinary company mindestens 51 % der shares or shares of the Guarantor, Stammgeschäftsanteile bzw. provided that no Change of Stammaktien der Garantin sind; Control shall occur if BASF dies gilt mit der Maßgabe, dass individually holds a minimum of kein Kontrollwechsel eintritt, 51 per cent. of the ordinary wenn BASF alleine mindestens company shares or shares in the 51 % der Stammgeschäftsanteile Guarantor; or bzw. Stammaktien der Garantin hält; oder
(ii) zum oder nach dem Zeitpunkt (ii) on or after the date of a Qualified eines Qualifizierten IPO ein IPO, the occurrence of any event Ereignis eintritt, durch das eine pursuant to which one or more oder mehrere Person(en) (außer person(s) (other than any listed einer börsennotierten Holding Company of the Holdinggesellschaft der Garantin Guarantor and other than BASF und außer BASF (oder eines ihrer (or any of its subsidiaries)) acting Tochterunternehmen)), die either individually or acting in entweder alleine oder gemeinsam concert within the meaning of im Sinne von § 2 Absatz 5 § 2(5) of the German Securities WpÜG handeln, unmittelbar oder Acquisition and Take Over Act mittelbar einen (Wertpapiererwerbs- und Stimmrechtsanteil von mehr als Übernahmegesetz – WpÜG) 50 % an der Garantin erwerben, acquire(s) directly or indirectly wobei der Stimmrechtsanteil more than 50 per cent. of the nach § 34 Absatz 1 und 2 WpHG voting rights of the Guarantor, berechnet wird. provided that the share of voting rights shall be calculated pursuant to § 34 paragraphs (l) and (2) WpHG.
"Kontrollwechsel-Stichtag" bezeichnet "Change of Control Effective Date" folgenden von der Emittentin in der means the following date fixed by the Kontrollwechsel-Mitteilung Issuer in the Change of Control Notice: festgelegten Tag:
(i) Falls zum betreffenden Zeitpunkt (i) If at the relevant time any senior nicht-nachrangige debt instruments of the Issuer, the Fremdkapitalinstrumente der Guarantor or another entity Emittentin, der Garantin oder benefitting from a guarantee of
139 einer anderen Gesellschaft unter the Issuer or the Guarantor are einer Garantie der Emittentin outstanding, "Change of oder der Garantin ausstehen, ist Control Effective Date" means "Kontrollwechsel-Stichtag" (x) the fifth Business Day (x) frühestens der fünfte following the date on which such Geschäftstag nach dem Tag, an securities may become payable dem solche Wertpapiere due to put notices of the holders aufgrund einer Kündigung der of such securities in respect of the Inhaber dieser Wertpapiere same Change of Control Event wegen des gleichen (or a similar concept) at the Kontrollwechsel-Ereignisses earliest but in any event (y) the (oder eines vergleichbaren 60th day following the Konzepts) fällig werden können, publication of the Change of aber in jedem Fall (y) spätestens Control Notice at the latest. der 60. Tag nach Veröffentlichung der Kontrollwechsel-Mitteilung.
(ii) Falls zum betreffenden Zeitpunkt (ii) If at the relevant time no senior keine nicht-nachrangigen debt instruments of the Issuer, the Fremdkapitalinstrumente der Guarantor or another entity Emittentin, der Garantin oder benefitting from a guarantee of einer anderen Gesellschaft unter the Issuer or the Guarantor are einer Garantie der Emittentin outstanding, "Change of oder der Garantin ausstehen, ist Control Effective Date" means a "Kontrollwechsel-Stichtag" ein Business Day which falls not less Geschäftstag, der nicht weniger than 20 nor more than 60 days als 20 und nicht mehr als 60 Tage after publication of the Change of nach Bekanntmachung der Control Notice. Kontrollwechsel-Mitteilung liegen darf.
"Kontrollwechselzeitraum" bezeichnet "Change of Control Period" means the den Zeitraum von 120 Tagen ab dem period ending 120 days from but Stichtag (ausschließlich). excluding the Record Date.
"Holdinggesellschaft" bedeutet in "Holding Company" means in relation Bezug auf eine Gesellschaft oder ein to a company or corporation, any other Unternehmen, jede andere Gesellschaft company or corporation in respect of oder jedes andere Unternehmen, dessen which it is a subsidiary. Tochtergesellschaft es ist.
"Qualifizierter IPO" bezeichnet eine "Qualified IPO" means an initial listing erstmalige Börsenzulassung der of all or part of the share capital of the Gesamtheit oder eines Teils der Aktien Guarantor or any Holding Company of der Garantin oder einer Hol- the Guarantor (whose only principal dinggesellschaft der Garantin (deren asset is the direct or indirect ownership einziger wesentliche in the Guarantor) on any internationally Vermögensgegenstand die unmittelbare recognised stock exchange or any other oder mittelbare Beteiligung an der Ga- issue by way of flotation or public rantin ist) an einer international offering or any equivalent circumstances anerkannten Wertpapierbörse oder eine in relation to the Guarantor or any andere Emission im Wege eines Holding Company of the Guarantor.
140 Börsengangs oder eines öffentlichen Angebots oder unter entsprechenden Umständen in Bezug auf die Garantin oder eine Holdinggesellschaft der Garantin.
"WpHG" bezeichnet das Wertpapier- "WpHG" means the German Securities handelsgesetz in seiner jeweils gültigen Trading Act (Wertpapierhandelsgesetz – Fassung. WpHG) as amended from time to time.
(d) Ein "Negatives Ratingereignis" gilt im (d) A "Negative Rating Event" shall be Hinblick auf einen zuvor eingetretenen deemed to have occurred in respect of a Kontrollwechsel als eingetreten, wenn Change of Control if within the Change innerhalb des Kontrollwechselzeitraums of Control Period (as defined in (wie in § 6(5)(c) definiert): § 6(5)(c)):
(i) (i)
(A) für den Fall, dass die (A) in case, on the Record nichtnachrangigen Date, no credit rating from Fremdkapitalinstrumente any Rating Agency (as der Garantin am Stichtag defined below) is assigned über kein Rating von einer to the senior debt Ratingagentur (wie instruments of the nachstehend definiert) Guarantor and no single verfügen, keine einzige Rating Agency assigns an Ratingagentur ein investment grade credit Investment Grade Rating rating (i.e. at least "BBB-" (d.h. mindestens "BBB-" by Fitch or "Baa3" by durch Fitch oder "Baa3" Moody's or such other durch Moody's oder ein equivalent rating as may korrespondierendes Ra- be assigned by any other ting einer anderen Rating- Rating Agency) to the agentur) für die nicht- senior debt instruments of nachrangigen Fremd- the Guarantor; or kapitalinstrumente der Garantin vergibt; oder
(B) für den Fall, dass die (B) in case, on the Record nichtnachrangigen Date, no investment grade Fremdkapitalinstrumente credit rating is assigned to der Garantin am Stichtag the senior debt zwar über kein Investment instruments of the Grade Rating aber über Guarantor but one or more ein oder mehrere (mit non-investment grade Zustimmung der credit ratings ("BB+" by Emittentin erteilte) Non- Fitch or "Ba1" by Investment Grade Ratings Moody's or such other ("BB+" durch Fitch oder equivalent rating as may "Ba1" durch Moody's be assigned by any other oder ein Rating Agency, or korrespondierendes equivalent, or worse) are Rating einer anderen assigned to the senior debt
141 Ratingagentur oder instruments of the gleichwertig oder Guarantor (with the schlechter) verfügen, eine consent of the Issuer), any der Ratingagenturen ihr of the Rating Agencies jeweiliges Rating um downgrades its respective einen oder mehrere credit rating by one or Punkte (zur Erläuterung: more notches (for "BB+" nach "BB" bzw. illustration, "BB+" to "Ba1" nach "Ba2" "BB" or "Ba1" to "Ba2" entspricht einem Punkt) being one notch), absenkt, wobei kein provided that no Negative Negatives Ratingereignis Rating Event occurs if eintritt, wenn dieses such credit rating is Rating anschließend subsequently and during während des the Change of Control Kontrollwechselzeitraum Period reinstated to its s durch diese earlier or a better credit Ratingagentur auf das rating by such Rating ursprüngliche oder ein Agency ; or besseres Rating angehoben wird; oder
(C) für den Fall, dass die (C) in case, on the Record nichtnachrangigen Date, one or more Fremdkapitalinstrumente investment grade credit der Garantin am Stichtag ratings are assigned to the über ein oder mehrere senior debt instruments of Investment Grade Ratings the Guarantor, any of the verfügen, eine der Rating- Rating Agencies (i) agenturen ihr Investment withdraws or (ii) Grade Rating (d.h. downgrades such mindestens "BBB-" durch investment grade credit Fitch oder "Baa3" durch rating (i.e. at least "BBB-" Moody's oder ein korres- by Fitch or "Baa3" by pondierendes Rating einer Moody's or such other anderen Ratingagentur) equivalent rating as may (i) zurückzieht oder be assigned by any other (ii) von einem Investment Rating Agency) to a non- Grade Rating auf ein non- investment grade credit Investment Grade Rating rating ("BB+" by Fitch or ("BB+" durch Fitch oder "Ba1" by Moody's or such "Ba1" durch Moody's other equivalent rating as oder ein may be assigned by any korrespondierendes other Rating Agency, or Rating einer anderen equivalent, or worse), Ratingagentur oder provided that no Negative gleichwertig oder Rating Event occurs if schlechter) herabstuft, such credit rating is wobei kein Negatives subsequently reinstated Ratingereignis eintritt, and during the Change of wenn dieses Rating Control Period to its anschließend während des earlier or a better
142 Kontrollwechselzeitraum investment grade credit s durch die jeweilige rating by such Rating Ratingagentur auf das Agency or (in the case of ursprüngliche oder ein a withdrawal) replaced by besseres Investment an investment grade credit Grade Rating angehoben rating from any other wird oder (im Falle einer Rating Agency; and Zurückziehung) das betreffende Rating durch das Investment Grade Rating einer anderen Ratingagentur ersetzt wird; und
(ii) die jeweilige Ratingagentur bei (ii) in making any decision to ihrer Entscheidung zur downgrade or withdraw a credit Herabstufung oder Zurücknahme rating pursuant to § 6(5)(d)(i)(B) eines Kreditratings gemäß and § 6(5)(d)(i)(C) above, the § 6(5)(d)(i)(B) und relevant Rating Agency announ- § 6(5)(d)(i)(C) öffentlich bekannt ces publicly or confirms in gibt oder schriftlich bestätigt, writing that such decision(s) dass diese Entscheidung(en) ganz resulted, in whole or in part, from oder teilweise aufgrund des the occurrence of the Change of Eintritts des Kontrollwechsels Control. erfolgte(n).
Falls die nicht-nachrangigen Fremd- If on the Record Date the senior debt kapitalinstrumente der Garantin zum instruments of the Guarantor carry a Stichtag über ein Rating von mehr als rating from more than one Rating einer Rating Agentur verfügen, von Agency, at least one of which is denen mindestens eines ein Investment investment grade, then § 6(5)(d)(i)(C) Grade Rating ist, findet § 6(5)(d)(i)(C) will apply. Anwendung.
Falls sich die von Moody's oder Fitch If the rating designations employed by verwendeten Rating-Kategorien any of Moody's or Fitch are changed gegenüber denen, die in § 6(5)(d) from those which are described in beschrieben werden, ändern sollten, § 6(5)(d) above, the Issuer shall wird die Emittentin diejenigen Rating- determine the rating designations of Kategorien von Moody's bzw. Fitch Moody's or Fitch (as appropriate) as are bestimmen, die den früheren Rating- most equivalent to the prior rating Kategorien von Moody's bzw. Fitch designations of Moody's or Fitch and möglichst nahekommen. § 6(5)(d) ist § 6(5)(d) shall be construed accordingly. dann entsprechend auszulegen.
(6) Bekanntmachung der Rückzahlung. Die (6) Notification of Redemption. The Issuer will Emittentin kann ein Recht zur Rückzahlung give not less than 15 nor more than 60 days' gemäß § 6(3) und (4) durch eine notice to the Noteholders in accordance with Bekanntmachung an die Anleihegläubiger § 13 of any redemption pursuant to § 6(3) and gemäß § 13 unter Einhaltung einer Frist von (4). In the case of § 6(3)(b) such notice will set nicht weniger als 15 und nicht mehr als 60 forth the name and address of the institution Tagen ausüben. Die Bekanntmachung hat in appointed by the Issuer as Make-whole dem Fall von § 6(3)(b) den Namen und die Calculation Agent and in the cases of § 6(4)
143 Geschäftsstelle der Institution, welche durch die such notice will set forth the underlying facts of Emittentin als Make-whole-Berechnungsstelle the Issuer's right to redemption and specify the ernannt wurde, bzw. in den Fällen des § 6(4) date fixed for redemption. diejenigen Tatsachen zu enthalten, auf welche die Emittentin ihr Rückzahlungsrecht stützt, und den für die Rückzahlung festgelegten Tag bezeichnen.
§ 7 § 7 ZAHLSTELLEN UND BERECHNUNGSSTELLE PAYING AND CALCULATION AGENT
(1) Bestellung. Die Emittentin hat Citibank Europe (1) Appointment. The Issuer has appointed PLC als Hauptzahlstelle in Bezug auf die Citibank Europe PLC as principal paying agent Schuldverschreibungen (die "Hauptzahlstelle" with respect to the Notes (the "Principal und gemeinsam mit jeder etwaigen von der Paying Agent" and, together with any Emittentin nach § 7(2) bestellten zusätzlichen additional paying agent appointed by the Issuer Zahlstelle, die "Zahlstellen") bestellt. in accordance with § 7(2), the "Paying Agents").
Die Emittentin hat Citibank Europe PLC als Be- The Issuer has appointed Citibank Europe PLC rechnungsstelle in Bezug auf die Schuldver- as calculation agent with respect to the Notes schreibungen (die "Berechnungsstelle" und, (the "Calculation Agent" and, together with the gemeinsam mit den Zahlstellen, die Paying Agents, the "Agents"). "Verwaltungsstellen") bestellt.
Die Geschäftsräume der Citibank Europe PLC The address of the specified offices of Citibank befinden sich unter der folgenden Adresse: Europe PLC is:
Citibank Europe PLC Citibank Europe PLC 1 North Wall Quay 1 North Wall Quay Dublin 1 Dublin 1 Ireland Ireland
(2) Änderung oder Beendigung der Bestel- (2) Variation or Termination of Appointment. The lung. Die Emittentin behält sich das Recht vor, Issuer reserves the right at any time to vary or jederzeit die Ernennung einer Zahlstelle oder terminate the appointment of any Paying Agent der Berechnungsstelle zu verändern oder zu or the Calculation Agent and to appoint beenden und Nachfolger- bzw. zusätzliche successor or additional Paying Agents or a Zahlstellen oder eine Nachfolger-Berechnungs- successor Calculation Agent. Notice of any stelle zu ernennen. Den Anleihegläubigern change in the Paying Agents or the Calculation werden Änderungen in Bezug auf die Agent or in the specified office of any Paying Zahlstellen oder die Berechnungsstelle und Agent or the Calculation Agent will promptly deren angegebene Geschäftsstellen umgehend be given to the Noteholders pursuant to § 13. gemäß § 13 bekannt gemacht.
(3) Status der beauftragten Stellen. Die Zahl- (3) Status of the Agents. The Paying Agents and stellen und die Berechnungsstelle handeln Calculation Agent act solely as agents of the ausschließlich als Vertreter der Emittentin und Issuer and do not assume any obligations übernehmen keine Verpflichtungen gegenüber towards or relationship of contract, agency or den Anleihegläubigern; es wird kein Vertrags-, trust for or with any of the Noteholders. The Auftrags- oder Treuhandverhältnis zwischen Paying Agents are exempt from the restrictions ihnen und den Anleihegläubigern begründet. of § 181 of the German Civil Code (Bürgerliches Gesetzbuch - BGB).
144 Die Zahlstellen sind von den Beschränkungen des § 181 BGB befreit.
(4) Unabhängiger Berater. Wenn die Emittentin (4) Independent Advisor. If the Issuer appoints an gemäß § 3(5)(a) einen Unabhängigen Berater Independent Advisor in accordance with bestellt, dann ist § 7(3) auf den Unabhängigen § 3(5)(a), § 7(3) shall apply mutatis mutandis to Berater entsprechend anzuwenden. the Independent Advisor.
(5) Make-whole-Berechnungsstelle. Wenn die (5) Make-whole Calculation Agent. If the Issuer Emittentin gemäß § 6(3)(b) eine Make-whole- appoints a Make-whole Calculation Agent in Berechnungsstelle bestellt, dann ist § 7(3) auf accordance with § 6(3)(b), § 7(3) shall apply die Make-whole-Berechnungsstelle mutatis mutandis to the Make-whole entsprechend anzuwenden. Calculation Agent.
§ 8 § 8 STEUERN TAXATION
Kapital und Zinsen werden von der Emittentin Principal and interest shall be payable by the oder der Garantin ohne Abzug oder Einbehalt Issuer or the Guarantor without deduction or gegenwärtiger oder zukünftiger Steuern, withholding for or on account of any present or Abgaben oder amtlicher Gebühren gleich future taxes, duties or governmental charges of welcher Art gezahlt, die von oder in dem Land, any nature whatsoever imposed, levied or in dem die Emittentin oder die Garantin ihren collected by or in or on behalf of the country in Hauptsitz oder Steuersitz hat, oder für dessen which the Issuer or the Guarantor has its Rechnung oder von oder für Rechnung einer domicile or tax residence or by or on behalf of dort zur Steuererhebung ermächtigten any political subdivision or authority therein Gebietskörperschaft oder Behörde auferlegt, having power to tax (hereinafter together the erhoben oder eingezogen werden (nachstehend "Withholding Taxes"), unless such deduction zusammen "Quellensteuern" genannt), es sei or withholding at source is required by law. If denn, ein solcher Abzug oder Einbehalt an der the Issuer or the Guarantor is required by law to Quelle ist gesetzlich vorgeschrieben. Sofern die make such withholding or deduction, it shall Emittentin oder die Garantin gesetzlich zu pay such additional amounts (the "Additional einem solchen Einbehalt oder Abzug Amounts") of principal and interest as may be verpflichtet ist, wird sie die zusätzlichen necessary in order that the net amounts received Beträge ("zusätzlichen Beträge") an Kapital by the Noteholder after such deduction or und Zinsen zahlen, die erforderlich sind, damit withholding at source equal the respective der dem Anleihegläubiger nach diesem Abzug amounts of principal and interest which would oder Einbehalt an der Quelle zufließende have been receivable had no such deduction or Nettobetrag jeweils den Beträgen an Kapital withholding been required. No such Additional und Zinsen entspricht, die ihm zustehen Amounts shall, however, be payable on account würden, wenn der Abzug oder Einbehalt nicht of any taxes, duties or governmental charges erforderlich wäre. Solche zusätzlichen Beträge which: sind jedoch nicht zahlbar aufgrund von Steuern, Abgaben oder amtlicher Gebühren, die
(a) auf andere Weise als durch Einbehalt (a) are payable otherwise than by oder Abzug von zahlbaren Beträgen zu withholding or deduction from amounts entrichten sind; oder payable; or
(b) wegen gegenwärtiger oder früherer (b) are payable by reason of the Noteholder persönlicher oder geschäftlicher having, or having had, some personal or Beziehungen des Anleihegläubigers zu business connection with the country in dem Land, in dem die Emittentin oder which the Issuer or the Guarantor has its
145 die Garantin ihren Hauptsitz oder domicile or tax residence, and not Steuersitz hat, zu zahlen sind, und nicht merely by reason of the fact that allein deshalb, weil Zahlungen auf die payments in respect of the Notes are, or Schuldverschreibungen aus Quellen in for purposes of taxation are deemed to dem Land, in dem die Emittentin oder be, derived from sources in, or are die Garantin ihren Hauptsitz oder secured in, the country where the Issuer Steuersitz hat, stammen (oder für or the Guarantor has its domicile or tax Zwecke der Besteuerung so behandelt residence; or werden) oder dort besichert sind; oder
(c) aufgrund (i) einer Richtlinie oder (c) are to be withheld or deducted pursuant Verordnung der Europäischen Union to (i) any European Union Directive or betreffend die Besteuerung von Regulation concerning the taxation of Zinserträgen oder (ii) einer interest income, or (ii) any international zwischenstaatlichen Vereinbarung, treaty, agreement or understanding eines zwischenstaatlichen Abkommens relating to such taxation and to which the oder einer zwischenstaatlichen Netherlands or the Federal Republic of Verständigung über deren Besteuerung, Germany or the European Union is a an der die Niederlande, die party, or (iii) any provision of law Bundesrepublik Deutschland oder die implementing, or complying with, or Europäische Union beteiligt ist, oder (iii) introduced to conform with, such einer gesetzlichen Vorschrift, die diese Directive, Regulation, treaty, agreement Richtlinie, Verordnung, Vereinbarung, or understanding; or Abkommen oder Verständigung umsetzt oder befolgt, abzuziehen oder einzubehalten sind; oder
(d) aufgrund des niederländischen (d) are payable by reason of the Dutch Quellensteuergesetzes 2021 (Wet Withholding Tax Act 2021 (Wet bronbelasting 2021) zahlbar sind. bronbelasting 2021).
Die Emittentin und die Garantin sind keinesfalls In any event, the Issuer and the Guarantor will verpflichtet, zusätzliche Beträge in Bezug auf have no obligation to pay additional amounts einen Einbehalt oder Abzug von Beträgen zu deducted or withheld by the Issuer, the relevant zahlen, die gemäß Sections 1471 bis 1474 des Paying Agent or any other party in relation to U.S. Internal Revenue Code (in der jeweils any withholding or deduction of any amounts geltenden Fassung oder gemäß required by the rules of U.S. Internal Revenue Nachfolgebestimmungen), gemäß Code Sections 1471 through 1474 (or any zwischenstaatlicher Abkommen, gemäß den in amended or successor provisions), pursuant to einer anderen Rechtsordnung in any inter-governmental agreement, or Zusammenhang mit diesen Bestimmungen implementing legislation adopted by another erlassenen Durchführungsvorschriften oder jurisdiction in connection with these provisions, gemäß mit dem Internal Revenue Service or pursuant to any agreement with the U.S. geschlossenen Verträgen von der Emittentin, Internal Revenue Service ("FATCA der jeweiligen Zahlstelle oder einem anderen Withholding") or indemnify any investor in Beteiligten abgezogen oder einbehalten wurden relation to any FATCA Withholding. ("FATCA-Steuerabzug") oder Anleger in Bezug auf einen FATCA-Steuerabzug schadlos zu halten.
"Vereinigte Staaten" bezeichnet die "United States" means the United States of Vereinigten Staaten von Amerika America (including the States thereof and the (einschließlich deren Bundesstaaten und des District of Columbia) and its possessions
146 District of Columbia) sowie deren Territorien (including Puerto Rico, the U.S. Virgin Islands, (einschließlich Puerto Rico, der U.S. Virgin Guam, American Samoa, Wake Island and Islands, Guam, American Samoa, Wake Island Northern Mariana Islands). und Northern Mariana Islands).
§ 9 § 9 VORLEGUNGSFRIST PRESENTATION PERIOD
Die in § 801 Absatz 1 Satz 1 BGB bestimmte The period for presentation of the Notes Vorlegungsfrist der Schuldverschreibungen provided in § 801 paragraph 1, sentence 1 of the wird auf zehn Jahre verkürzt. German Civil Code (Bürgerliches Gesetzbuch – BGB) will be reduced to 10 years.
§ 10 § 10 ERSETZUNG SUBSTITUTION
(1) Ersetzung. Die Emittentin ist jederzeit (1) Substitution. The Issuer may at any time, if no berechtigt, sofern sie sich nicht mit einer payment of principal or interest on any of the Zahlung von Kapital oder Zinsen auf die Notes is in default or deferred, without the Schuldverschreibungen in Verzug befindet oder consent of the Noteholders, substitute for the diese aufgeschoben hat, ohne Zustimmung der Issuer either the Guarantor or any other Anleihegläubiger, die Garantin oder eine andere company which is directly or indirectly Gesellschaft, die direkt oder indirekt von der controlled by the Guarantor as new issuer (the Garantin kontrolliert wird, als neue Emittentin "New Issuer") in respect of all obligations für alle sich aus oder im Zusammenhang mit arising under or in connection with the Notes den Schuldverschreibungen ergebenden with the effect of releasing the Issuer of all such Verpflichtungen mit schuldbefreiender obligations, if: Wirkung für die Emittentin an die Stelle der Emittentin zu setzen (die "Neue Emittentin"), sofern
(a) die Neue Emittentin sämtliche (a) the New Issuer validly assumes any and Verpflichtungen der Emittentin aus oder all obligations of the Issuer arising under im Zusammenhang mit den Schuldver- or in connection with the Notes and, if schreibungen rechtswirksam übernimmt service of process vis-à-vis the New und, sofern eine Zustellung an die Neue Issuer would have to be effected outside Emittentin außerhalb der the Federal Republic of Germany, Bundesrepublik Deutschland erfolgen appoints a process agent within the müsste, einen Zustel- Federal Republic of Germany; lungsbevollmächtigten in der Bundesrepublik Deutschland bestellt;
(b) die Neue Emittentin in der Lage ist, (b) the New Issuer is in the position to pay sämtliche zur Erfüllung der aufgrund der to the Clearing System or to the Principal Schuldverschreibungen bestehenden Paying Agent in Euro and without Zahlungsverpflichtungen erforderlichen deducting or withholding any taxes or Beträge in Euro an das Clearingsystem other duties of whatever nature imposed, oder die Hauptzahlstelle zu zahlen, und levied or deducted by the country (or zwar ohne Abzug oder Einbehalt von countries) in which the New Issuer has Steuern oder sonstigen Abgaben its domicile or tax residence all amounts jedweder Art, die von dem Land (oder required for the performance of the den Ländern), in dem (in denen) die Neue Emittentin ihren Sitz oder
147 Steuersitz hat, auferlegt, erhoben oder payment obligations arising from or in eingezogen werden; connection with the Notes;
(c) die Garantin (außer in dem Fall, dass sie (c) the Guarantor (except in the case that the selbst die Neue Emittentin ist) unbedingt Guarantor itself is the New Issuer) und unwiderruflich die Verpflichtungen irrevocably and unconditionally der Neuen Emittentin aus den Schuld- guarantees on a subordinated basis such verschreibungen auf nachrangiger Basis obligations of the New Issuer under the zu Bedingungen garantiert, die Notes on terms which ensure that each sicherstellen, dass jeder Noteholder will be put in an economic Anleihegläubiger wirtschaftlich position that is at least as favourable as mindestens so gestellt wird, wie er ohne that which would have existed if the die Ersetzung stehen würde (jede solche substitution had not taken place (each Erklärung eine "Ersetzungsgarantie"); such declaration a "Substitution Guarantee");
(d) die Neue Emittentin und die Emittentin (d) the New Issuer and the Issuer have alle etwaigen für die Ersetzung obtained any necessary governmental notwendigen Genehmigungen und and regulatory approvals and consents, if Zustimmungen von Regierungsstellen any, for such substitution, the Guarantor und Aufsichtsbehörden erhalten haben, (if it is not itself the New Issuer) has die Garantin (falls sie nicht selbst Neue obtained any necessary approvals and Emittentin ist) alle etwaigen für die consents, if any, for the giving of the Abgabe der Ersetzungsgarantie Substitution Guarantee, the New Issuer notwendigen Genehmigungen und has obtained any necessary Zustimmungen von Regierungsstellen governmental and regulatory approvals und Aufsichtsbehörden erhalten hat, die and consents, if any, for the performance Neue Emittentin alle etwaigen für die of its obligations under the Notes, all Erfüllung ihrer Verpflichtungen aus den such approvals and consents, if any, are Schuldverschreibungen notwendigen in full force and effect, and the Genehmigungen und Zustimmungen obligations assumed by the New Issuer von Regierungsstellen und under the Notes and the Substitution Aufsichtsbehörden erhalten hat, Guarantee given by the Guarantor (if it sämtliche dieser etwaigen is not itself the New Issuer) are each Genehmigungen und Zustimmungen valid and binding in accordance with weiterhin in vollem Umfang gültig und their respective terms and enforceable by wirksam sind, und die Verpflichtungen each Noteholder; der Neuen Emittentin aus den Schuldverschreibungen und die von der Garantin, (falls sie nicht selbst Neue Emittentin ist) begebene Ersetzungsgarantie jeweils gemäß ihren Bestimmungen wirksam und rechtsverbindlich und durch jeden Anleihegläubiger durchsetzbar sind;
(e) die Neue Emittentin sich verpflichtet, (e) the New Issuer undertakes to reimburse jedem Anleihegläubiger alle Steuern, any Noteholder for such taxes, fees or Gebühren oder Abgaben zu erstatten, die duties which may be imposed upon such ihm infolge der Schuldübernahme durch Noteholder as a consequence of the die Neue Emittentin auferlegt werden, assumption of the Issuer's obligations by vorausgesetzt, dass sich die the New Issuer, provided that such
148 Verpflichtung auf Beträge beschränkt, undertaking shall be limited to amounts die der Anleihegläubiger ohne die that would not have been imposed upon Ersetzung der Emittentin nicht hätte the Noteholder had such substitution not tragen müssen; occurred;
(f) der Hauptzahlstelle bezüglich der (f) there shall have been delivered to the betroffenen Rechtsordnungen jeweils Principal Paying Agent for each ein Rechtsgutachten einer jurisdiction affected one opinion of a law Anwaltskanzlei vorgelegt wurde, das firm to the effect that § 10(1)(a) through bestätigt, dass die Bestimmungen in (e) above have been satisfied. § 10(1)(a) bis (e) erfüllt wurden
(2) Bezugnahmen. Im Fall einer Schuldner- (2) References. In the event of a substitution ersetzung gemäß § 10(1) gilt jede Bezugnahme pursuant to § 10(1), any reference in these in diesen Anleihebedingungen auf die Terms and Conditions to the Issuer will be a Emittentin als eine solche auf die Neue reference to the New Issuer and any reference Emittentin und jede Bezugnahme auf die to the Netherlands will be a reference to the Niederlande als eine solche auf den Staat (die New Issuer's country (countries) of domicile for Staaten), in welchem die Neue Emittentin tax purposes. steuerlich ansässig ist.
(3) Bekanntmachung und Wirksamwerden der (3) Notice and effectiveness of substitution. Notice Ersetzung. Die Ersetzung der Emittentin ist of any substitution of the Issuer shall be given gemäß § 13 bekanntzumachen. Mit der by notice in accordance with § 13. Upon such Bekanntmachung der Ersetzung wird die publication, the substitution shall become Ersetzung wirksam und die Emittentin und im effective, and the Issuer and in the event of a Fall einer wiederholten Anwendung dieses § 10 repeated application of this § 10, any previous jede frühere Neue Emittentin von ihren New Issuer shall be discharged from any and all sämtlichen Verpflichtungen aus den Schuldver- obligations under the Notes. In the case of such schreibungen frei. Im Fall einer solchen substitution, the stock exchange(s), if any, on Schuldnerersetzung wird (werden) die which the Notes are then listed will be notified. Wertpapierbörse(n) informiert, an der (denen) die Schuldverschreibungen dann notiert sind.
§ 11 § 11 WEITERE EMISSIONEN FURTHER ISSUES
Die Emittentin kann ohne Zustimmung der The Issuer may from time to time, without the Anleihegläubiger weitere Schuldverschreibun- consent of the Noteholders, create and issue gen begeben, die in jeder Hinsicht (mit further Notes of the series having the same Ausnahme der ersten Zinszahlung) die gleichen terms and conditions as the Notes in all respects Bedingungen wie die Schuldverschreibungen (except for the first payment of interest) so as to dieser Anleihe haben und die zusammen mit form a single series with the Notes of the series. den Schuldverschreibungen dieser Anleihe eine einzige Anleihe bilden.
§ 12 § 12 ÄNDERUNG DER ANLEIHEBEDINGUNGEN; AMENDMENTS TO THE TERMS AND GEMEINSAMER VERTRETER, ÄNDERUNG CONDITIONS; JOINT REPRESENTATIVE, DER GARANTIE AMENDMENTS TO THE GUARANTEE
(1) Änderung der Anleihebedingungen. Die (1) Amendment of the Terms and Conditions. The Emittentin kann die Anleihebedingungen mit Issuer may amend the Terms and Conditions
149 Zustimmung aufgrund Mehrheitsbeschlusses with the consent of a majority resolution of the der Anleihegläubiger nach Maßgabe der §§ 5 ff. Noteholders pursuant to §§ 5 et seq. of the SchVG ändern. Eine Änderung der German Act on Issues of Debt Securities Anleihebedingungen ohne Zustimmung der (Gesetz über Schuldverschreibungen aus Emittentin scheidet aus. Gesamtemissionen – SchVG) (the "SchVG"). There will be no amendment of the Terms and Conditions without the Issuer's consent.
Die Anleihegläubiger können insbesondere In particular, the Noteholders may consent to einer Änderung wesentlicher Inhalte der amendments which materially change the Anleihebedingungen, einschließlich der in § 5 substance of the Terms and Conditions, Absatz 3 SchVG vorgesehenen Maßnahmen including such measures as provided for under mit den in dem nachstehenden § 12(2) § 5(3) SchVG by resolutions passed by such genannten Mehrheiten zustimmen. Ein majority of the votes of the Noteholders as ordnungsgemäß gefasster Mehrheitsbeschluss stated under § 12(2) below. A duly passed ist für alle Anleihegläubiger verbindlich. majority resolution will be binding upon all Noteholders.
(2) Mehrheitserfordernisse. Vorbehaltlich des (2) Majority requirements. Except as provided by nachstehenden Satzes und der Erreichung der the following sentence and provided that the erforderlichen Beschlussfähigkeit, beschließen quorum requirements are being met, the die Anleihegläubiger mit der einfachen Noteholders may pass resolutions by simple Mehrheit der an der Abstimmung majority of the voting rights participating in the teilnehmenden Stimmrechte. Beschlüsse, durch vote. Resolutions which materially change the welche der wesentliche Inhalt der substance of the Terms and Conditions, in Anleihebedingungen, insbesondere in den particular in the cases of § 5(3) numbers 1 Fällen des § 5 Absatz 3 Nummer 1 bis 9 through 9 SchVG, may only be passed by a SchVG, geändert wird, bedürfen zu ihrer majority of at least 75 per cent. of the voting Wirksamkeit einer Mehrheit von mindestens rights participating in the vote (a "Qualified 75 % der an der Abstimmung teilnehmenden Majority"). The voting right is suspended as Stimmrechte (eine "Qualifizierte Mehrheit"). long as any Notes are attributable to the Issuer Das Stimmrecht ruht, solange die Schuldver- or any of its affiliates (within the meaning of schreibungen der Emittentin oder einem mit ihr § 271(2) of the German Commercial Code verbundenen Unternehmen (§ 271 Absatz 2 (Handelsgesetzbuch – HGB)) or are being held HGB) zustehen oder für Rechnung der for the account of the Issuer or any of its Emittentin oder eines mit ihr verbundenen affiliates. Unternehmens gehalten werden.
(3) Beschlüsse. Beschlüsse der Anleihegläubiger (3) Resolutions. Resolutions of the Noteholders werden entweder in einer will be made either in a Noteholders' meeting in Gläubigerversammlung nach § 12(3)(a) oder im accordance with § 12(3)(a) or by means of a Wege der Abstimmung ohne Versammlung vote without a meeting (Abstimmung ohne nach § 12(3)(b) getroffen, die von der Versammlung) in accordance with § 12(3)(b), in Emittentin oder einem gemeinsamen Vertreter, either case convened by the Issuer or a joint sofern vorhanden, einberufen wird. representative, if any. Pursuant to § 9(1) Anleihegläubiger, deren Schuldverschreibun- sentence 2 SchVG, Noteholders holding Notes gen zusammen 5 % des jeweils ausstehenden in the total amount of 5 per cent. of the Gesamtnennbetrags der Schuldverschreibungen outstanding Principal Amount of the Notes may erreichen, können gemäß § 9 Absatz 1 S. 2 in writing request to convene a Noteholders' SchVG schriftlich die Einberufung einer meeting or vote without a meeting for any of the Anleihegläubigerversammlung oder reasons permitted pursuant to § 9(1) sentence 2 Abstimmung ohne Versammlung mit einer SchVG.
150 gemäß § 9 Absatz 1 S. 2 SchVG zulässigen Begründung verlangen.
(a) Beschlüsse der Anleihegläubiger im (a) Resolutions of the Noteholders in a Rahmen einer Gläubigerversammlung Noteholders' meeting will be made in werden nach §§ 9 ff. SchVG getroffen. accordance with § 9 et seq. SchVG. The Die Einberufung der convening notice of a Noteholders' Gläubigerversammlung regelt die meeting will provide the further details weiteren Einzelheiten der relating to the resolutions and the voting Beschlussfassung und der Abstimmung. procedure. The subject matter of the vote Mit der Einberufung der as well as the proposed resolutions will Gläubigerversammlung werden in der be notified to Noteholders in the agenda Tagesordnung die of the meeting. Beschlussgegenstände sowie die Vorschläge zur Beschlussfassung den Anleihegläubigern bekannt gegeben.
(b) Beschlüsse der Anleihegläubiger im (b) Resolutions of the Noteholders by means Wege der Abstimmung ohne of a voting not requiring a physical Versammlung werden nach § 18 SchVG meeting (Abstimmung ohne getroffen. Die Aufforderung zur Versammlung) will be made in Stimmabgabe durch den accordance § 18 SchVG. The request for Abstimmungsleiter regelt die weiteren voting as submitted by the chairman Einzelheiten der Beschlussfassung und (Abstimmungsleiter) will provide the der Abstimmung. Mit der Aufforderung further details relating to the resolutions zur Stimmabgabe werden die and the voting procedure. The subject Beschlussgegenstände sowie die matter of the vote as well as the proposed Vorschläge zur Beschlussfassung den resolutions will be notified to Anleihegläubigern bekannt gegeben. Noteholders together with the request for voting.
(4) Zweite Gläubigerversammlung. Wird die (4) Second noteholders' meeting. If it is Beschlussfähigkeit bei der Abstimmung ohne ascertained that no quorum exists for the vote Versammlung nach § 12(3)(b) nicht festgestellt, without meeting pursuant to § 12(3)(b), the kann der Abstimmungsleiter eine chairman (Abstimmungsleiter) may convene a Gläubigerversammlung einberufen, welche als meeting, which shall be deemed to be a second zweite Gläubigerversammlung im Sinne des meeting within the meaning of § 15(3) § 15 Absatz 3 Satz 3 SchVG gilt. sentence 3 SchVG.
(5) Anmeldung. Die Stimmrechtsausübung ist von (5) Registration. The exercise of voting rights is einer vorherigen Anmeldung der subject to the registration of the Noteholders. Anleihegläubiger abhängig. Die Anmeldung The registration must be received at the address muss bis zum dritten Tag vor der stated in the request for voting no later than the Gläubigerversammlung im Falle einer third day prior to the meeting in the case of a Gläubigerversammlung (wie in § 12(3)(a) oder Noteholders' meeting (as described in § 12(4) beschrieben) bzw. vor dem Beginn des § 12(3)(a) or § 12(4)) or the beginning of the Abstimmungszeitraums im Falle einer voting period in the case of voting not requiring Abstimmung ohne Versammlung (wie in a physical meeting (as described in § 12(3)(b)), § 12(3)(b) beschrieben) unter der in der as the case may be. As part of the registration, Aufforderung zur Stimmabgabe angegebenen Noteholders must demonstrate their eligibility Anschrift zugehen. Zusammen mit der to participate in the vote by means of a special Anmeldung müssen Anleihegläubiger den confirmation of their respective Custodian in
151 Nachweis ihrer Berechtigung zur Teilnahme an text form and by submission of a blocking der Abstimmung durch eine besondere instruction by the Custodian stating that the Bescheinigung ihrer Depotbank in Textform relevant Notes are not transferable from and und die Vorlage eines Sperrvermerks der including the day such registration has been sent Depotbank erbringen, aus dem hervorgeht, dass until and including the stated end of the meeting die relevanten Schuldverschreibungen für den or day the voting period ends, as the case may Zeitraum vom Tag der Absendung der be. Anmeldung (einschließlich) bis zu dem angegebenen Ende der Versammlung (einschließlich) bzw. dem Ende des Abstimmungszeitraums (einschließlich) nicht übertragen werden können.
(6) Gemeinsamer Vertreter. Die Anleihegläubiger (6) Joint representative. The Noteholders may by können durch Mehrheitsbeschluss die majority resolution provide for the appointment Bestellung und Abberufung eines gemeinsamen or dismissal of a joint representative, the duties Vertreters, die Aufgaben und Befugnisse des and responsibilities and the powers of such joint gemeinsamen Vertreters, die Übertragung von representative, the transfer of the rights of the Rechten der Anleihegläubiger auf den Noteholders to the joint representative and a gemeinsamen Vertreter und eine Beschränkung limitation of liability of the joint representative. der Haftung des gemeinsamen Vertreters Appointment of a joint representative may only bestimmen. Die Bestellung eines gemeinsamen be passed by a Qualified Majority if such joint Vertreters bedarf einer Qualifizierten Mehrheit, representative is to be authorised to consent to a wenn er ermächtigt wird, wesentlichen material change in the substance of the Terms Änderungen der Anleihebedingungen gemäß and Conditions in accordance with § 12(1) § 12(1) zuzustimmen. hereof.
(7) Bekanntmachungen. Bekanntmachungen be- (7) Notices. Any notices concerning this § 12 will treffend diesen § 12 erfolgen gemäß den §§ 5ff. be made in accordance with § 5 et seq. SchVG SchVG sowie nach § 13. and § 13.
(8) Änderung der Garantie. Die oben aufgeführten (8) Amendments to the Guarantee. The provisions auf die Änderung der Anleihebedingungen set out above applicable to the amendment of anwendbaren Bestimmungen finden sinngemäß the Terms and Conditions shall apply mutatis auf die Bestimmungen der Garantie und einer mutandis to the Guarantee and to any etwaigen Ersetzungsgarantie Anwendung. Substitution Guarantee.
§ 13 § 13 BEKANNTMACHUNGEN NOTICES
(1) Alle Bekanntmachungen, die die Schuldver- (1) All notices regarding the Notes, other than any schreibungen betreffen, außer den in § 12 notices stipulated in § 12 which will be made vorgesehenen Bekanntmachungen, die exclusively pursuant to the provisions SchVG, ausschließlich gemäß den Bestimmungen des will be published in the Federal Gazette SchVG erfolgen, sind von der Emittentin im (Bundesanzeiger) by the Issuer. Any notice will Bundesanzeiger zu veröffentlichen. Jede be deemed to have been validly given on the derartige Mitteilung gilt am dritten Kalendertag third calendar day following the date of such nach dem Tag der Veröffentlichung (oder bei publication (or, if published more than once, on mehreren Veröffentlichungen am dritten the third calendar day following the date of the Kalendertag nach dem Tag der ersten solchen first such publication). Veröffentlichung) als wirksam erfolgt.
152 (2) Alle Bekanntmachungen, die die Schuldver- (2) All notices regarding the Notes will be schreibungen betreffen, werden (solange die published (so long as the Notes are listed on the Schuldverschreibungen an der Luxemburger Luxembourg Stock Exchange) on the website of Wertpapierbörse notiert sind) auf der Internet- the Luxembourg Stock Exchange on Seite der Luxemburger Wertpapierbörse unter www.bourse.lu. Any notice will become www.bourse.lu veröffentlicht. Für das Datum effective for all purposes on the date of the first und die Rechtswirksamkeit sämtlicher such publication. Bekanntmachungen ist die erste Veröffentlichung maßgeblich.
(3) Die Emittentin ist berechtigt, alle die Schuld- (3) The Issuer will be entitled to deliver all notices verschreibungen betreffenden Mitteilungen an concerning the Notes to the Clearing System for das Clearingsystem zur Weiterleitung an die communication by the Clearing System to the Anleihegläubiger zu übermitteln. Jede derartige Noteholders. Any such notice shall be deemed Mitteilung gilt am siebten Tag nach dem Tag to have been validly given on the seventh day der Übermittlung der Mitteilung an das after the day on which it was delivered to the Clearingsystem als wirksam erfolgt. Clearing System.
§ 14 § 14 SCHLUSSBESTIMMUNGEN FINAL PROVISIONS
(1) Anwendbares Recht. Form und Inhalt der (1) Applicable Law. The Notes, as to form and Schuldverschreibungen sowie die Rechte und content, and all rights and obligations of the Pflichten der Anleihegläubiger und der Noteholders and the Issuer and the Guarantor Emittentin und der Garantin bestimmen sich in shall be governed by and construed exclusively jeder Hinsicht nach deutschem Recht und sollen in accordance with German law. ausschließlich nach deutschem Recht ausgelegt werden.
(2) Gerichtsstand. Vorbehaltlich eines zwingend (2) Submission to Jurisdiction. Subject to any vorgeschriebenen Gerichtsstands für bestimmte mandatory jurisdiction for specific proceedings Verfahren nach dem SchVG sind nicht under the SchVG, the courts of Frankfurt am ausschließlich zuständig für sämtliche im Main shall have non-exclusive jurisdiction for Zusammenhang mit den Schuldverschreibun- any action or other legal proceedings (the gen entstehenden Klagen oder sonstige "Proceedings") arising out of or in connection Verfahren (die "Rechtsstreitigkeiten") die with the Notes. Gerichte in Frankfurt am Main.
(3) Geltendmachung von Rechten. Jeder (3) Enforcement of Rights. Any Noteholder may in Anleihegläubiger ist berechtigt, in jedem any proceedings against the Issuer or to which Rechtsstreit gegen die Emittentin oder in jedem the Noteholder and the Issuer are parties protect Rechtsstreit, in dem der Anleihegläubiger und and enforce in its own name its rights arising die Emittentin Partei sind, seine Rechte aus under its Notes on the basis of: diesen Schuldverschreibungen im eigenen Namen geltend zu machen gegen Vorlage:
(a) einer Bescheinigung der Depotbank, die (a) a certificate issued by its Custodian (i) den vollen Namen und die volle (i) stating the full name and address of Anschrift des Anleihegläubigers the Noteholder, (ii) specifying an bezeichnet, (ii) den Gesamtnennbetrag aggregate Principal Amount of Notes von Schuldverschreibungen angibt, die credited on the date of such statement to am Ausstellungstag dieser such Noteholder's securities account(s)
153 Bescheinigung den bei dieser Depotbank maintained with its Custodian and bestehenden Depots dieses (iii) confirming that its Custodian has Anleihegläubigers gutgeschrieben sind given a written notice to the Clearing und (iii) bestätigt, dass die Depotbank System and the Principal Paying Agent dem Clearingsystem und der containing the information specified in Hauptzahlstelle eine schriftliche (i) and (ii) and bearing Mitteilung gemacht hat, die die Angaben acknowledgements of the Clearing gemäß (i) und (ii) enthält und System and the relevant account holder Bestätigungsvermerke des in the Clearing System and Clearingsystems sowie des betroffenen Kontoinhabers bei dem Clearingsystem trägt sowie
(b) einer von einem (b) a copy of the Global Note relating to the Vertretungsberechtigten des Notes, certified as being a true copy by a Clearingsystems oder der duly authorised officer of the Clearing Hauptzahlstelle bestätigten Ablichtung System or the Principal Paying Agent; or der Globalurkunde; oder
(c) eines anderen, in Rechtsstreitigkeiten in (c) any other means of evidence permitted dem Land der Geltendmachung in legal proceedings in the country of zulässigen Beweismittels. enforcement.
"Depotbank" bezeichnet ein Bank- oder "Custodian" means any bank or other financial sonstiges Finanzinstitut, bei dem der institution with which the Noteholder maintains Anleihegläubiger Schuldverschreibungen im a securities account in respect of any Notes and Depot verwahren lässt und das ein Konto bei having an account maintained with the Clearing dem Clearingsystem hat, einschließlich des System, including the Clearing System. Clearingsystems.
§ 15 § 15 SPRACHE LANGUAGE
Diese Anleihebedingungen sind in deutscher These Terms and Conditions are written in the Sprache abgefasst und mit einer Übersetzung in German language and provided with an English die englische Sprache versehen. Der deutsche language translation. The German text will be Wortlaut ist allein rechtsverbindlich. Die the only legally binding version. The English englische Übersetzung dient nur zur language translation is provided for Information. convenience only.
****** ******
The following paragraphs in italics do not form part of the Terms and Conditions.
The Guarantor intends (but is not obliged to ensure) that until the Second Reset Date, to the extent that the Notes provide the Issuer with ''equity credit'' for rating purposes by Fitch, to redeem or repurchase the Notes only to the extent they are replaced with instruments that provide equivalent Fitch equity credit (or such other nomenclature that Fitch may then use to describe the degree to which an instrument exhibits the characteristics of an ordinary share). The intention above does not provide for any claim for Noteholders nor does it create any legal obligation for the Issuer or the Guarantor.
Customary exceptions apply as to the Issuer's replacement intention including that the Issuer or Guarantor does not intend to replace the Notes:
154 (i) if the Notes are not required to support the credit profile of the Issuer or the Guarantor compared to the credit profile as of the issue date of the Notes; or
(ii) if the Notes are redeemed pursuant to a Rating Agency Event, a Tax Event, a Gross-up Event, an Accounting Event, minimal outstanding principal amount or a Change of Control Event has occurred and some or all of the Notes left outstanding are redeemed or purchased.
155 THE SUBORDINATED GUARANTEE FOR THE NC2026 NOTES
GARANTIE GUARANTEE
der of
Wintershall Dea GmbH Wintershall Dea GmbH (die "Garantin"), (the "Guarantor"), einer Gesellschaft mit beschränkter Haftung nach dem a private limited liability company (Gesellschaft mit Recht der Bundesrepublik Deutschland, mit beschränkter Haftung), incorporated under the laws of eingetragenem Sitz in Celle, Deutschland und mit the Federal Republic of Germany, having its registered Geschäftsanschrift Friedrich-Ebert-Straße 160, 34119 seat at Celle, Germany and its business address at Kassel, Deutschland, und Überseering 40, 22297 Friedrich-Ebert-Straße 160, 34119 Kassel, Germany, Hamburg, Deutschland, eingetragen im and Überseering 40, 22297 Hamburg, Germany, Handelsregister des Amtsgerichts Lüneburg unter registered with the Commercial Register Registernummer HRB 200519, (Handelsregister) of the Local Court (Amtsgericht) of Lüneburg under docket number HRB 200519, zugunsten der Anleihegläubiger der €650.000.000 for the benefit of the Noteholders of the €650,000,000 garantierten, nachrangigen, resettable, guaranteed undated subordinated, resettable, fixed rate festverzinslichen Schuldverschreibungen ohne feste notes (the "Notes"), divided into Notes in bearer form Laufzeit (die "Schuldverschreibungen"), eingeteilt in with a principal amount of €100,000 each, which rank untereinander gleichberechtigte, auf den Inhaber pari passu among themselves, issued by lautende Schuldverschreibungen im Nennbetrag von je €100.000, die von der
Wintershall Dea Finance 2 B.V., Wintershall Dea Finance 2 B.V., Bogaardplein 47, 2284 DP Rijswijk, Niederlande Bogaardplein 47, 2284 DP Rijswijk, the Netherlands (die "Emittentin"), (the "Issuer"),
begeben worden sind, ISIN XS2286041517. ISIN XS2286041517.
VORBEMERKUNG: WHEREAS:
(A) Die Garantin beabsichtigt die ordnungsgemäße (A) The Guarantor intends to guarantee on a Zahlung von allen Beträgen, die nach Maßgabe subordinated basis the due and punctual der Anleihebedingungen (die payment of any amounts payable by the Issuer "Anleihebedingungen") der von der Emittentin in accordance with the terms and conditions of begebenen Schuldverschreibungen zu zahlen the Notes (the "Terms and Conditions"). sind, auf nachrangiger Basis zu garantieren.
(B) Es ist Sinn und Zweck dieser Garantie, (B) The intent and purpose of this Guarantee is to sicherzustellen, dass die Anleihegläubiger unter ensure that the Noteholders under any and all allen tatsächlichen und rechtlichen Umständen circumstances, whether factual or legal, and und unabhängig von Wirksamkeit und irrespective of validity or enforceability of the Durchsetzbarkeit der Verpflichtungen der obligations of the Issuer under the Notes, or any Emittentin aus den Schuldverschreibungen und other reasons on the basis of which the Issuer unabhängig von sonstigen Gründen, aufgrund may fail to fulfil its obligations, receive on the derer die Emittentin ihre Verpflichtungen nicht respective due date any and all sums payable in erfüllt, bei Fälligkeit alle nach Maßgabe der accordance with the Terms and Conditions. Anleihebedingungen zu zahlenden Beträge erhalten.
156 ES WIRD FOLGENDES VEREINBART: IT IS AGREED AS FOLLOWS:
1. Definitionen 1. Definitions
Die in dieser Garantie verwendeten und nicht Terms used in this Guarantee and not otherwise anders definierten Begriffe haben die ihnen in defined herein will have the meaning attributed den Anleihebedingungen zugewiesene to them in the Terms and Conditions. Bedeutung.
2. Garantie 2. Guarantee
(a) Die Garantin übernimmt gegenüber Citibank (a) The Guarantor unconditionally and irrevocably Europe plc (die "Hauptzahlstelle") zugunsten guarantees towards Citibank Europe plc (the jedes Anleihegläubigers (jeweils ein "Principal Paying Agent") for the benefit of "Anleihegläubiger") der each noteholder (each a "Noteholder") of each Schuldverschreibungen (wobei dieser Begriff Note (which expression will include any Global jede Globalurkunde, welche die Note representing the Notes), the due payment Schuldverschreibungen verbrieft, einschließt), of all amounts which are payable by the Issuer die unbedingte und unwiderrufliche Garantie in accordance with the Terms and Conditions, für die ordnungsgemäße Zahlung aller gemäß as and when the same will become due. den Anleihebedingungen von der Emittentin zu zahlenden Beträge bei Fälligkeit.
(b) Die Verpflichtungen der Garantin aus dieser (b) The obligations of the Guarantor under this Garantie guarantee
(i) sind selbständig und unabhängig von (i) will be separate and independent from den Verpflichtungen der Emittentin aus the obligations of the Issuer under the den Schuldverschreibungen, Notes,
(ii) bestehen unabhängig von der (ii) will exist irrespective of the legality, Rechtmäßigkeit, Gültigkeit, validity and binding effect or Verbindlichkeit oder Durchsetzbarkeit enforceability of the Notes, and der Schuldverschreibungen und
(iii) werden nicht durch Ereignisse, (iii) will not be affected by any event, Bedingungen oder Umstände condition or circumstance of whatever tatsächlicher oder rechtlicher Art nature, whether factual or legal, save the berührt, außer durch die vollständige, full, definitive and irrevocable endgültige und unwiderrufliche satisfaction of any and all payment Erfüllung sämtlicher in den obligations expressed to be assumed Schuldverschreibungen eingegangenen under the Notes. Zahlungsverpflichtungen.
(c) Die Verpflichtungen der Garantin aus dieser (c) The obligations of the Guarantor under this Garantie erstrecken sich ohne Weiteres auf die Guarantee shall, without any further act or thing Verpflichtungen einer nicht mit der Garantin being required to be done or to occur, extend to identischen Nachfolgeschuldnerin, die infolge the obligations of any Substitute Debtor which einer Schuldnerersetzung gemäß § 10 der is not the Guarantor which arise in respect of the Anleihebedingungen in Bezug auf die Notes by virtue of an issuer substitution Schuldverschreibungen entstehen. pursuant to § 10 of the Terms and Conditions.
157 Im Falle einer Ersetzung der Emittentin durch In the event of a substitution of the Issuer by the die Garantin als Nachfolgeschuldnerin erlischt Guarantor as the Substitute Debtor this diese Garantie. Guarantee will terminate.
3. Status 3. Status
(a) Die Verbindlichkeiten der Garantin aus der (a) The obligations of the Guarantor under the Garantie begründen nicht besicherte Guarantee constitute unsecured obligations of Verbindlichkeiten der Garantin, die: the Guarantor ranking
(i) nachrangig gegenüber allen (i) subordinated to all present and future gegenwärtigen und zukünftigen nicht unsubordinated and subordinated nachrangigen und nachrangigen obligations of the Guarantor which do Verbindlichkeiten der Garantin, die not fall under Clause 3(a)(ii) or (iii), nicht unter Ziffer 3(a)(ii) oder (iii) fallen, sind,
(ii) untereinander und mit allen anderen (ii) pari passu among themselves and pari gegenwärtigen und zukünftigen nicht passu with all other present and future besicherten Verbindlichkeiten, die unsecured obligations of the Guarantor nachrangig gegenüber allen nicht ranking subordinated to all nachrangigen und nachrangigen unsubordinated and subordinated Verbindlichkeiten der Garantin sind obligations of the Guarantor (including (einschließlich der Gleichrangigen any Parity Securities of the Guarantor), Wertpapiere der Garantin), gleichrangig except for any subordinated obligations sind, soweit nicht zwingende gesetzliche required to be preferred by mandatory Bestimmungen solche anderen provisions of law; and nachrangigen Verbindlichkeiten im Rang besserstellen; und
(iii) im Rang nur den Ansprüchen und (iii) senior only to the rights and claims of Rechten von Inhabern von holders of Junior Securities of the Nachrangigen Wertpapieren der Guarantor. Garantin vorgehen.
Im Fall der Auflösung, der Liquidation, der In the event of the dissolution, liquidation, Insolvenz oder eines der Abwendung der insolvency or any proceeding to avoid Insolvenz der Garantin dienenden Verfahrens insolvency of the Guarantor, the obligations of stehen die Verbindlichkeiten der Garantin aus the Guarantor under the Guarantee will be der Garantie allen nicht nachrangigen und allen subordinated to all unsubordinated and all nachrangigen Verbindlichkeiten der Garantin, subordinated obligations of the Guarantor die nicht unter Ziffer 3(a)(ii) oder (iii) fallen, im which do not fall under Clause 3(a)(ii) or (iii) so Rang nach, so dass Zahlungen auf die Garantie that in any such event payments will not be erst erfolgen, wenn alle Ansprüche gegen die made under the Guarantee until all claims Garantin aus Verbindlichkeiten, die den against the Guarantor which pursuant to Verbindlichkeiten der Garantin aus der Garantie Clause 2(b) are expressed to, or by operation of nach Maßgabe von Ziffer 2(b) oder kraft law, rank senior to the obligations of the Gesetzes im Rang vorgehen, vollständig Guarantor under the Guarantee have been befriedigt sind; erst nach Befriedigung aller der satisfied in full; only after all of the vorgenannten Ansprüche und der aforementioned claims and claims under the Verbindlichkeiten aus der Garantie können die Guarantee have been satisfied any remaining verbleibenden Vermögenswerte an die Inhaber
158 der Nachrangigen Wertpapiere der Garantin assets may be distributed to the holders of the verteilt werden. Junior Securities of the Guarantor.
"Gleichrangiges Wertpapier der Garantin" "Parity Security of the Guarantor" means any bezeichnet jedes gegenwärtige oder zukünftige present or future security, registered security or Wertpapier, Namenswertpapier oder jedes other instrument which (i) is issued by the andere Instrument, das (i) von der Garantin Guarantor and ranks or is expressed to rank pari begeben ist und gleichrangig mit den passu with the obligations of the Guarantor Verbindlichkeiten der Garantin aus der Garantie under the Guarantee, or (ii) is issued by a ist oder als im Verhältnis zu den Subsidiary of the Guarantor and guaranteed by Verbindlichkeiten der Garantin aus der Garantie the Guarantor or for which the Guarantor has gleichrangig vereinbart ist, oder (ii) von einer otherwise assumed liability where the Tochtergesellschaft der Garantin begeben und Guarantor's obligations under the relevant von der Garantin dergestalt garantiert ist oder guarantee or other assumption of liability rank für das die Garantin dergestalt die Haftung pari passu with the Guarantor's obligations übernommen hat, dass die Verpflichtungen der under the Guarantee. Garantin aus der maßgeblichen Garantie oder Haftungsübernahme im Verhältnis zu den Verbindlichkeiten der Garantin aus der Garantie gleichrangig sind.
"Nachrangiges Wertpapier der Garantin" "Junior Security of the Guarantor" means bezeichnet (i) die Stammgeschäftsanteile oder (i) the ordinary company shares Stammaktien (soweit zum relevanten Zeitpunkt (Stammgeschäftsanteile) or ordinary shares einschlägig) der Garantin, (ii) jeden (Stammaktien) (if existing at the relevant point Geschäftsanteil einer anderen Gattung von of time) of the Guarantor, (ii) any company Geschäftsanteilen der Garantin bzw. jede Aktie share or share of any other class of company einer anderen Gattung von Aktien der Garantin, shares or shares of the Guarantor, including any einschließlich Vorzugsgeschäftsanteile oder preference company shares Vorzugsaktien (soweit zum relevanten (Vorzugsgeschäftsanteile) or preference shares Zeitpunkt einschlägig) der Garantin, (iii) jedes (Vorzugsaktien) (if existing at the relevant point andere gegenwärtige oder zukünftige of time) of the Guarantor, (iii) any other present Wertpapier, Namenswertpapier oder jedes or future security, registered security or other andere Instrument, das von der Garantin instrument of the Guarantor under which the begeben ist und bei dem die daraus folgenden Guarantor's obligations rank or are expressed to Verbindlichkeiten der Garantin mit den unter (i) rank pari passu with the instruments of the und (ii) beschriebenen Instrumenten der Guarantor described under (i) and (ii), and Garantin gleichrangig oder als gleichrangig (iv) any present or future security, registered vereinbart sind, und (iv) jedes gegenwärtige security or other instrument which is issued by oder zukünftige Wertpapier, Namenswertpapier a Subsidiary of the Guarantor and guaranteed by oder jedes andere Instrument, das von einer the Guarantor or for which the Guarantor has Tochtergesellschaft der Garantin begeben ist, otherwise assumed liability where the und das von der Garantin dergestalt garantiert Guarantor's obligations under such guarantee or ist oder für das die Garantin dergestalt die other assumption of liability rank or are Haftung übernommen hat, dass die betreffenden expressed to rank pari passu with the Verbindlichkeiten der Garantin aus der instruments of the Guarantor described under maßgeblichen Garantie oder (i), (ii) and (iii). Haftungsübernahme mit den unter (i), (ii) und (iii) beschriebenen Instrumenten der Garantin gleichrangig oder als gleichrangig vereinbart sind.
159 "Tochtergesellschaft" bezeichnet jede "Subsidiary" means an entity in which the Gesellschaft, an der die Garantin direkt oder Guarantor holds directly or indirectly a majority indirekt mehrheitlich beteiligt ist und die von interest and which is controlled by the der Garantin im Sinne von IFRS beherrscht Guarantor within the meaning of IFRS. wird.
(b) Die Anleihegläubiger sind nicht berechtigt, (b) The Noteholders may not set off any claim Forderungen aus der Garantie gegen etwaige arising under the Guarantee against any claim Forderungen der Garantin gegen sie that the Guarantor may have against any of aufzurechnen. Die Garantin ist nicht berechtigt, them. The Guarantor may not set off any claims etwaige Forderungen, welche sie gegen einen it may have against any Noteholder against any Anleihegläubiger hat, gegen Forderungen claims of such Noteholder under the Guarantee. dieses Anleihegläubigers aus der Garantie aufzurechnen.
(c) Unter Beachtung von Ziffer 3(a) bleibt es der (c) Subject to Clause 3(a), the Guarantor may Garantin unbenommen, ihre Verbindlichkeiten satisfy its obligations in respect the Guarantee im Hinblick auf die Garantie auch aus ihrem also from their other distributable assets sonstigen freien Vermögen zu bedienen. (sonstiges freies Vermögen).
4. Steuern 4. Taxation
Sämtliche auf die Garantie zu zahlenden All amounts to be paid in respect of the Beträge werden von der Garantin ohne Abzug Gurarantee shall be payable by the Guarantor oder Einbehalt gegenwärtiger oder zukünftiger without deduction or withholding for or on Steuern, Abgaben oder amtlicher Gebühren account of any present or future taxes, duties or gleich welcher Art gezahlt, die von oder in dem governmental charges of any nature whatsoever Land, in dem die Garantin ihren Hauptsitz oder imposed, levied or collected by or in or on Steuersitz hat, oder für dessen Rechnung oder behalf of the country in which the Guarantor has von oder für Rechnung einer dort zur its domicile or tax residence or by or on behalf Steuererhebung ermächtigten of any political subdivision or authority therein Gebietskörperschaft oder Behörde auferlegt, having power to tax (hereinafter together the erhoben oder eingezogen werden (nachstehend "Withholding Taxes"), unless such deduction zusammen "Quellensteuern" genannt), es sei or withholding at source is required by law. If denn, ein solcher Abzug oder Einbehalt an der the Guarantor is required by law to make such Quelle ist gesetzlich vorgeschrieben. Sofern die withholding or deduction, it shall pay such Garantin gesetzlich zu einem solchen Einbehalt additional amounts (the "Additional oder Abzug verpflichtet ist, wird sie die Amounts") as may be necessary in order that zusätzlichen Beträge ("zusätzlichen Beträge") the net amounts received by the Noteholder zahlen, die erforderlich sind, damit der dem after such deduction or withholding at source Anleihegläubiger nach diesem Abzug oder equal the respective amounts of principal and Einbehalt an der Quelle zufließende interest which would have been receivable had Nettobetrag jeweils den Beträgen an Kapital no such deduction or withholding been und Zinsen entspricht, die ihm zustehen required. No such Additional Amounts shall, würden, wenn der Abzug oder Einbehalt nicht however, be payable on account of any taxes, erforderlich wäre. Solche zusätzlichen Beträge duties or governmental charges which: sind jedoch nicht zahlbar aufgrund von Steuern, Abgaben oder amtlicher Gebühren, die
(a) auf andere Weise als durch Einbehalt (a) are payable otherwise than by oder Abzug von zahlbaren Beträgen zu withholding or deduction from amounts entrichten sind; oder payable; or
160 (b) wegen gegenwärtiger oder früherer (b) are payable by reason of the Noteholder persönlicher oder geschäftlicher having, or having had, some personal or Beziehungen des Anleihegläubigers zu business connection with the country in dem Land, in dem die Emittentin oder which the Issuer or the Guarantor has its die Garantin ihren Hauptsitz oder domicile or tax residence, and not Steuersitz hat, zu zahlen sind, und nicht merely by reason of the fact that allein deshalb, weil Zahlungen auf die payments in respect of the Notes are, or Schuldverschreibungen aus Quellen in for purposes of taxation are deemed to dem Land, in dem die Emittentin oder be, derived from sources in, or are die Garantin ihren Hauptsitz oder secured in, the country where the Issuer Steuersitz hat, stammen (oder für or the Guarantor has its domicile or tax Zwecke der Besteuerung so behandelt residence; or werden) oder dort besichert sind; oder
(c) die aufgrund (i) einer Richtlinie oder (c) are to be withheld or deducted pursuant Verordnung der Europäischen Union to (i) any European Union Directive or betreffend die Besteuerung von Regulation concerning the taxation of Zinserträgen oder (ii) einer interest income, or (ii) any international zwischenstaatlichen Vereinbarung, treaty, agreement or understanding eines zwischenstaatlichen Abkommens relating to such taxation and to which the oder einer zwischenstaatlichen Netherlands or the Federal Republic of Verständigung über deren Besteuerung, Germany or the European Union is a an der die Niederlande, die party, or (iii) any provision of law Bundesrepublik Deutschland oder die implementing, or complying with, or Europäische Union beteiligt ist, oder (iii) introduced to conform with, such einer gesetzlichen Vorschrift, die diese Directive, Regulation, treaty, agreement Richtlinie, Verordnung, Vereinbarung, or understanding; or Abkommen oder Verständigung umsetzt oder befolgt, abzuziehen oder einzubehalten sind; oder
(d) aufgrund des niederländischen (d) are payable by reason of the Dutch Quellensteuergesetzes 2021 (Wet Withholding Tax Act 2021 (Wet bronbelasting 2021) zahlbar sind. bronbelasting 2021).
Die Garantin ist keinesfalls verpflichtet, In any event, the Guarantor will have no zusätzliche Beträge in Bezug auf einen obligation to pay additional amounts deducted Einbehalt oder Abzug von Beträgen zu zahlen, or withheld by the Issuer, the relevant Paying die gemäß Sections 1471 bis 1474 des U.S. Agent or any other party in relation to any Internal Revenue Code (in der jeweils geltenden withholding or deduction of any amounts Fassung oder gemäß Nachfolgebestimmungen), required by the rules of U.S. Internal Revenue gemäß zwischenstaatlicher Abkommen, gemäß Code Sections 1471 through 1474 (or any den in einer anderen Rechtsordnung in amended or successor provisions), pursuant to Zusammenhang mit diesen Bestimmungen any inter-governmental agreement, or erlassenen Durchführungsvorschriften oder implementing legislation adopted by another gemäß mit dem Internal Revenue Service jurisdiction in connection with these provisions, geschlossenen Verträgen von der Emittentin, or pursuant to any agreement with the U.S. der jeweiligen Zahlstelle oder einem anderen Internal Revenue Service ("FATCA Beteiligten abgezogen oder einbehalten wurden Withholding") or indemnify any investor in ("FATCA-Steuerabzug") oder Anleger in relation to any FATCA Withholding. Bezug auf einen FATCA-Steuerabzug schadlos zu halten.
161 "Vereinigte Staaten" bezeichnet die "United States" means the United States of Vereinigten Staaten von Amerika America (including the States thereof and the (einschließlich deren Bundesstaaten und des District of Columbia) and its possessions District of Columbia) sowie deren Territorien (including Puerto Rico, the U.S. Virgin Islands, (einschließlich Puerto Rico, der U.S. Virgin Guam, American Samoa, Wake Island and Islands, Guam, American Samoa, Wake Island Northern Mariana Islands). und Northern Mariana Islands).
5. Diese Garantie und alle darin enthaltenen 5. This Guarantee and all undertakings contained Vereinbarungen stellen einen Vertrag herein constitute a contract for the benefit of the zugunsten der jeweiligen Anleihegläubiger als Noteholders from time to time as third party begünstigte Dritte gemäß § 328 Absatz 1 BGB beneficiaries pursuant to § 328 (1) of the BGB. dar. Sie begründen das Recht eines jeden They give rise to the right of each such Anleihegläubigers, die Erfüllung der hierin Noteholder to require performance of the eingegangenen Verpflichtungen unmittelbar obligations undertaken herein directly from the von der Garantin zu fordern und diese Guarantor, and to enforce such obligations Verpflichtungen unmittelbar gegenüber der directly against the Guarantor. Garantin durchzusetzen.
Jeder Anleihegläubiger kann im Falle der Any Noteholder has the right in case of a Verletzung von Zahlungsverpflichtungen payment default under the Terms and gemäß den Anleihebedingungen der Conditions of the Notes to enforce this Schuldverschreibungen zur Durchsetzung Guarantee by filing a suit directly against the dieser Garantie auf erstes Anfordern hin Guarantor on first demand without the need to unmittelbar gegen die Garantin Klage erheben, take prior proceedings against the Issuer ohne dass zunächst ein Verfahren gegen die Emittentin eingeleitet werden müsste.
6. Die Hauptzahlstelle handelt nicht als 6. The Principal Paying Agent does not act in a Treuhänder oder in einer ähnlichen Eigenschaft fiduciary or in any other similar capacity for the für die Anleihegläubiger. Noteholders.
7. Verschiedene Bestimmungen 7. Miscellaneous Provisions
(a) Diese Garantie unterliegt deutschem (a) This Guarantee will be governed by, and Recht. construed in accordance with, German law.
(b) Nicht ausschließlich zuständig für (b) The District Court (Landgericht) in sämtliche im Zusammenhang mit der Frankfurt am Main will have non- Garantie entstehenden Klagen oder exclusive jurisdiction for any action or sonstige Verfahren ist das Landgericht other legal proceedings arising out of or Frankfurt am Main. in connection with the Guarantee.
(c) Jeder Anleihegläubiger kann in jedem (c) On the basis of a copy of this Guarantee Rechtsstreit gegen die Garantin und in certified as being a true copy by a duly jedem Rechtsstreit, in dem er und die authorised officer of the Principal Garantin Partei sind, seine Rechte aus Paying Agent, each Noteholder may dieser Garantie auf der Grundlage einer protect and enforce in its own name its von einer vertretungsberechtigten rights arising under this Guarantee in Person der Hauptzahlstelle beglaubigten any legal proceedings against the Kopie dieser Garantie ohne Vorlage des Guarantor or to which such Noteholder
162 Originals im eigenen Namen and the Guarantor are parties, without wahrnehmen und durchsetzen. the need for presentation of this Guarantee in such proceedings.
(d) Die Hauptzahlstelle verpflichtet sich, (d) The Principal Paying Agent agrees to das Original dieser Garantie bis zur hold the original copy of this Guarantee Erfüllung sämtlicher Verpflichtungen in custody until all obligations under the aus den Schuldverschreibungen und Notes and this Guarantee have been dieser Garantie zu verwahren. fulfilled.
8. Für Änderungen der Bedingungen der Garantie 8. In relation to amendments of the terms of the durch Beschluss der Anleihegläubiger mit Guarantee by resolution of the Noteholders with Zustimmung der Garantin gilt § 12 der the consent of the Guarantor, § 12 of the Terms Anleihebedingungen entsprechend. and Conditions applies mutatis mutandis.
9. Diese Garantie ist in deutscher Sprache 9. This Guarantee is written in the German abgefasst und mit einer Übersetzung in die language and provided with an English englische Sprache versehen. Der deutsche language translation. The German text will be Wortlaut ist allein rechtsverbindlich. Die the only legally binding version. The English englische Übersetzung dient nur zur language translation is provided for Information. convenience only.
Kassel, im Januar 2021 Kassel, in January 2021
Wintershall Dea GmbH Wintershall Dea GmbH
______
Wir nehmen die obenstehenden Erklärungen zugunsten We hereby accept all of the above declarations in der Anleihegläubiger ohne Obligo, Haftung oder favour of the Noteholders without recourse, warranty Rückgriffsrechte auf uns an. or liability on us.
Citibank Europe plc Citibank Europe plc
______
163 THE SUBORDINATED GUARANTEE FOR THE NC2029 NOTES
GARANTIE GUARANTEE
der of
Wintershall Dea GmbH Wintershall Dea GmbH (die "Garantin"), (the "Guarantor"), einer Gesellschaft mit beschränkter Haftung nach dem a private limited liability company (Gesellschaft mit Recht der Bundesrepublik Deutschland, mit beschränkter Haftung), incorporated under the laws of eingetragenem Sitz in Celle, Deutschland und mit the Federal Republic of Germany, having its registered Geschäftsanschrift Friedrich-Ebert-Straße 160, 34119 seat at Celle, Germany and its business address at Kassel, Deutschland, und Überseering 40, 22297 Friedrich-Ebert-Straße 160, 34119 Kassel, Germany, Hamburg, Deutschland, eingetragen im and Überseering 40, 22297 Hamburg, Germany, Handelsregister des Amtsgerichts Lüneburg unter registered with the Commercial Register Registernummer HRB 200519, (Handelsregister) of the Local Court (Amtsgericht) of Lüneburg under docket number HRB 200519, zugunsten der Anleihegläubiger der €850.000.000 for the benefit of the Noteholders of the €850,000,000 garantierten, nachrangigen, resettable, guaranteed undated subordinated, resettable, fixed rate festverzinslichen Schuldverschreibungen ohne feste notes (the "Notes"), divided into Notes in bearer form Laufzeit (die "Schuldverschreibungen"), eingeteilt in with a principal amount of €100,000 each, which rank untereinander gleichberechtigte, auf den Inhaber pari passu among themselves, issued by lautende Schuldverschreibungen im Nennbetrag von je €100.000, die von der
Wintershall Dea Finance 2 B.V., Wintershall Dea Finance 2 B.V., Bogaardplein 47, 2284 DP Rijswijk, Niederlande Bogaardplein 47, 2284 DP Rijswijk, the Netherlands (die "Emittentin"), (the "Issuer"),
begeben worden sind, ISIN XS2286041947. ISIN XS2286041947.
VORBEMERKUNG: WHEREAS:
(A) Die Garantin beabsichtigt die ordnungsgemäße (A) The Guarantor intends to guarantee on a Zahlung von allen Beträgen, die nach Maßgabe subordinated basis the due and punctual der Anleihebedingungen (die payment of any amounts payable by the Issuer "Anleihebedingungen") der von der Emittentin in accordance with the terms and conditions of begebenen Schuldverschreibungen zu zahlen the Notes (the "Terms and Conditions"). sind, auf nachrangiger Basis zu garantieren.
(B) Es ist Sinn und Zweck dieser Garantie, (B) The intent and purpose of this Guarantee is to sicherzustellen, dass die Anleihegläubiger unter ensure that the Noteholders under any and all allen tatsächlichen und rechtlichen Umständen circumstances, whether factual or legal, and und unabhängig von Wirksamkeit und irrespective of validity or enforceability of the Durchsetzbarkeit der Verpflichtungen der obligations of the Issuer under the Notes, or any Emittentin aus den Schuldverschreibungen und other reasons on the basis of which the Issuer unabhängig von sonstigen Gründen, aufgrund may fail to fulfil its obligations, receive on the derer die Emittentin ihre Verpflichtungen nicht respective due date any and all sums payable in erfüllt, bei Fälligkeit alle nach Maßgabe der accordance with the Terms and Conditions. Anleihebedingungen zu zahlenden Beträge erhalten.
164 ES WIRD FOLGENDES VEREINBART: IT IS AGREED AS FOLLOWS:
1. Definitionen 1. Definitions
Die in dieser Garantie verwendeten und nicht Terms used in this Guarantee and not otherwise anders definierten Begriffe haben die ihnen in defined herein will have the meaning attributed den Anleihebedingungen zugewiesene to them in the Terms and Conditions. Bedeutung.
2. Garantie 2. Guarantee
(a) Die Garantin übernimmt gegenüber Citibank (a) The Guarantor unconditionally and irrevocably Europe plc (die "Hauptzahlstelle") zugunsten guarantees towards Citibank Europe plc (the jedes Anleihegläubigers (jeweils ein "Principal Paying Agent") for the benefit of "Anleihegläubiger") der each noteholder (each a "Noteholder") of each Schuldverschreibungen (wobei dieser Begriff Note (which expression will include any Global jede Globalurkunde, welche die Note representing the Notes), the due payment Schuldverschreibungen verbrieft, einschließt), of all amounts which are payable by the Issuer die unbedingte und unwiderrufliche Garantie in accordance with the Terms and Conditions, für die ordnungsgemäße Zahlung aller gemäß as and when the same will become due. den Anleihebedingungen von der Emittentin zu zahlenden Beträge bei Fälligkeit.
(b) Die Verpflichtungen der Garantin aus dieser (b) The obligations of the Guarantor under this Garantie guarantee
(i) sind selbständig und unabhängig von (i) will be separate and independent from den Verpflichtungen der Emittentin aus the obligations of the Issuer under the den Schuldverschreibungen, Notes,
(ii) bestehen unabhängig von der (ii) will exist irrespective of the legality, Rechtmäßigkeit, Gültigkeit, validity and binding effect or Verbindlichkeit oder Durchsetzbarkeit enforceability of the Notes, and der Schuldverschreibungen und
(iii) werden nicht durch Ereignisse, (iii) will not be affected by any event, Bedingungen oder Umstände condition or circumstance of whatever tatsächlicher oder rechtlicher Art nature, whether factual or legal, save the berührt, außer durch die vollständige, full, definitive and irrevocable endgültige und unwiderrufliche satisfaction of any and all payment Erfüllung sämtlicher in den obligations expressed to be assumed Schuldverschreibungen eingegangenen under the Notes. Zahlungsverpflichtungen.
(c) Die Verpflichtungen der Garantin aus dieser (c) The obligations of the Guarantor under this Garantie erstrecken sich ohne Weiteres auf die Guarantee shall, without any further act or thing Verpflichtungen einer nicht mit der Garantin being required to be done or to occur, extend to identischen Nachfolgeschuldnerin, die infolge the obligations of any Substitute Debtor which einer Schuldnerersetzung gemäß § 10 der is not the Guarantor which arise in respect of the Anleihebedingungen in Bezug auf die Notes by virtue of an issuer substitution Schuldverschreibungen entstehen. pursuant to § 10 of the Terms and Conditions.
165 Im Falle einer Ersetzung der Emittentin durch In the event of a substitution of the Issuer by the die Garantin als Nachfolgeschuldnerin erlischt Guarantor as the Substitute Debtor this diese Garantie. Guarantee will terminate.
3. Status 3. Status
(a) Die Verbindlichkeiten der Garantin aus der (a) The obligations of the Guarantor under the Garantie begründen nicht besicherte Guarantee constitute unsecured obligations of Verbindlichkeiten der Garantin, die: the Guarantor ranking
(i) nachrangig gegenüber allen (i) subordinated to all present and future gegenwärtigen und zukünftigen nicht unsubordinated and subordinated nachrangigen und nachrangigen obligations of the Guarantor which do Verbindlichkeiten der Garantin, die not fall under Clause 3(a)(ii) or (iii), nicht unter Ziffer 3(a)(ii) oder (iii) fallen, sind,
(ii) untereinander und mit allen anderen (ii) pari passu among themselves and pari gegenwärtigen und zukünftigen nicht passu with all other present and future besicherten Verbindlichkeiten, die unsecured obligations of the Guarantor nachrangig gegenüber allen nicht ranking subordinated to all nachrangigen und nachrangigen unsubordinated and subordinated Verbindlichkeiten der Garantin sind obligations of the Guarantor (including (einschließlich der Gleichrangigen any Parity Securities of the Guarantor), Wertpapiere der Garantin), gleichrangig except for any subordinated obligations sind, soweit nicht zwingende gesetzliche required to be preferred by mandatory Bestimmungen solche anderen provisions of law; and nachrangigen Verbindlichkeiten im Rang besserstellen; und
(iii) im Rang nur den Ansprüchen und (iii) senior only to the rights and claims of Rechten von Inhabern von holders of Junior Securities of the Nachrangigen Wertpapieren der Guarantor. Garantin vorgehen.
Im Fall der Auflösung, der Liquidation, der In the event of the dissolution, liquidation, Insolvenz oder eines der Abwendung der insolvency or any proceeding to avoid Insolvenz der Garantin dienenden Verfahrens insolvency of the Guarantor, the obligations of stehen die Verbindlichkeiten der Garantin aus the Guarantor under the Guarantee will be der Garantie allen nicht nachrangigen und allen subordinated to all unsubordinated and all nachrangigen Verbindlichkeiten der Garantin, subordinated obligations of the Guarantor die nicht unter Ziffer 3(a)(ii) oder (iii) fallen, im which do not fall under Clause 3(a)(ii) or (iii) so Rang nach, so dass Zahlungen auf die Garantie that in any such event payments will not be erst erfolgen, wenn alle Ansprüche gegen die made under the Guarantee until all claims Garantin aus Verbindlichkeiten, die den against the Guarantor which pursuant to Verbindlichkeiten der Garantin aus der Garantie Clause 2(b) are expressed to, or by operation of nach Maßgabe von Ziffer 2(b) oder kraft law, rank senior to the obligations of the Gesetzes im Rang vorgehen, vollständig Guarantor under the Guarantee have been befriedigt sind; erst nach Befriedigung aller der satisfied in full; only after all of the vorgenannten Ansprüche und der aforementioned claims and claims under the Verbindlichkeiten aus der Garantie können die Guarantee have been satisfied any remaining verbleibenden Vermögenswerte an die Inhaber
166 der Nachrangigen Wertpapiere der Garantin assets may be distributed to the holders of the verteilt werden. Junior Securities of the Guarantor.
"Gleichrangiges Wertpapier der Garantin" "Parity Security of the Guarantor" means any bezeichnet jedes gegenwärtige oder zukünftige present or future security, registered security or Wertpapier, Namenswertpapier oder jedes other instrument which (i) is issued by the andere Instrument, das (i) von der Garantin Guarantor and ranks or is expressed to rank pari begeben ist und gleichrangig mit den passu with the obligations of the Guarantor Verbindlichkeiten der Garantin aus der Garantie under the Guarantee, or (ii) is issued by a ist oder als im Verhältnis zu den Subsidiary of the Guarantor and guaranteed by Verbindlichkeiten der Garantin aus der Garantie the Guarantor or for which the Guarantor has gleichrangig vereinbart ist, oder (ii) von einer otherwise assumed liability where the Tochtergesellschaft der Garantin begeben und Guarantor's obligations under the relevant von der Garantin dergestalt garantiert ist oder guarantee or other assumption of liability rank für das die Garantin dergestalt die Haftung pari passu with the Guarantor's obligations übernommen hat, dass die Verpflichtungen der under the Guarantee. Garantin aus der maßgeblichen Garantie oder Haftungsübernahme im Verhältnis zu den Verbindlichkeiten der Garantin aus der Garantie gleichrangig sind.
"Nachrangiges Wertpapier der Garantin" "Junior Security of the Guarantor" means bezeichnet (i) die Stammgeschäftsanteile oder (i) the ordinary company shares Stammaktien (soweit zum relevanten Zeitpunkt (Stammgeschäftsanteile) or ordinary shares einschlägig) der Garantin, (ii) jeden (Stammaktien) (if existing at the relevant point Geschäftsanteil einer anderen Gattung von of time) of the Guarantor, (ii) any company Geschäftsanteilen der Garantin bzw. jede Aktie share or share of any other class of company einer anderen Gattung von Aktien der Garantin, shares or shares of the Guarantor, including any einschließlich Vorzugsgeschäftsanteile oder preference company shares Vorzugsaktien (soweit zum relevanten (Vorzugsgeschäftsanteile) or preference shares Zeitpunkt einschlägig) der Garantin, (iii) jedes (Vorzugsaktien) (if existing at the relevant point andere gegenwärtige oder zukünftige of time) of the Guarantor, (iii) any other present Wertpapier, Namenswertpapier oder jedes or future security, registered security or other andere Instrument, das von der Garantin instrument of the Guarantor under which the begeben ist und bei dem die daraus folgenden Guarantor's obligations rank or are expressed to Verbindlichkeiten der Garantin mit den unter (i) rank pari passu with the instruments of the und (ii) beschriebenen Instrumenten der Guarantor described under (i) and (ii), and Garantin gleichrangig oder als gleichrangig (iv) any present or future security, registered vereinbart sind, und (iv) jedes gegenwärtige security or other instrument which is issued by oder zukünftige Wertpapier, Namenswertpapier a Subsidiary of the Guarantor and guaranteed by oder jedes andere Instrument, das von einer the Guarantor or for which the Guarantor has Tochtergesellschaft der Garantin begeben ist, otherwise assumed liability where the und das von der Garantin dergestalt garantiert Guarantor's obligations under such guarantee or ist oder für das die Garantin dergestalt die other assumption of liability rank or are Haftung übernommen hat, dass die betreffenden expressed to rank pari passu with the Verbindlichkeiten der Garantin aus der instruments of the Guarantor described under maßgeblichen Garantie oder (i), (ii) and (iii). Haftungsübernahme mit den unter (i), (ii) und (iii) beschriebenen Instrumenten der Garantin gleichrangig oder als gleichrangig vereinbart sind.
167 "Tochtergesellschaft" bezeichnet jede "Subsidiary" means an entity in which the Gesellschaft, an der die Garantin direkt oder Guarantor holds directly or indirectly a majority indirekt mehrheitlich beteiligt ist und die von interest and which is controlled by the der Garantin im Sinne von IFRS beherrscht Guarantor within the meaning of IFRS. wird.
(b) Die Anleihegläubiger sind nicht berechtigt, (b) The Noteholders may not set off any claim Forderungen aus der Garantie gegen etwaige arising under the Guarantee against any claim Forderungen der Garantin gegen sie that the Guarantor may have against any of aufzurechnen. Die Garantin ist nicht berechtigt, them. The Guarantor may not set off any claims etwaige Forderungen, welche sie gegen einen it may have against any Noteholder against any Anleihegläubiger hat, gegen Forderungen claims of such Noteholder under the Guarantee. dieses Anleihegläubigers aus der Garantie aufzurechnen.
(c) Unter Beachtung von Ziffer 3(a) bleibt es der (c) Subject to Clause 3(a), the Guarantor may Garantin unbenommen, ihre Verbindlichkeiten satisfy its obligations in respect the Guarantee im Hinblick auf die Garantie auch aus ihrem also from their other distributable assets sonstigen freien Vermögen zu bedienen. (sonstiges freies Vermögen).
4. Steuern 4. Taxation
Sämtliche auf die Garantie zu zahlenden All amounts to be paid in respect of the Beträge werden von der Garantin ohne Abzug Gurarantee shall be payable by the Guarantor oder Einbehalt gegenwärtiger oder zukünftiger without deduction or withholding for or on Steuern, Abgaben oder amtlicher Gebühren account of any present or future taxes, duties or gleich welcher Art gezahlt, die von oder in dem governmental charges of any nature whatsoever Land, in dem die Garantin ihren Hauptsitz oder imposed, levied or collected by or in or on Steuersitz hat, oder für dessen Rechnung oder behalf of the country in which the Guarantor has von oder für Rechnung einer dort zur its domicile or tax residence or by or on behalf Steuererhebung ermächtigten of any political subdivision or authority therein Gebietskörperschaft oder Behörde auferlegt, having power to tax (hereinafter together the erhoben oder eingezogen werden (nachstehend "Withholding Taxes"), unless such deduction zusammen "Quellensteuern" genannt), es sei or withholding at source is required by law. If denn, ein solcher Abzug oder Einbehalt an der the Guarantor is required by law to make such Quelle ist gesetzlich vorgeschrieben. Sofern die withholding or deduction, it shall pay such Garantin gesetzlich zu einem solchen Einbehalt additional amounts (the "Additional oder Abzug verpflichtet ist, wird sie die Amounts") as may be necessary in order that zusätzlichen Beträge ("zusätzlichen Beträge") the net amounts received by the Noteholder zahlen, die erforderlich sind, damit der dem after such deduction or withholding at source Anleihegläubiger nach diesem Abzug oder equal the respective amounts of principal and Einbehalt an der Quelle zufließende interest which would have been receivable had Nettobetrag jeweils den Beträgen an Kapital no such deduction or withholding been und Zinsen entspricht, die ihm zustehen required. No such Additional Amounts shall, würden, wenn der Abzug oder Einbehalt nicht however, be payable on account of any taxes, erforderlich wäre. Solche zusätzlichen Beträge duties or governmental charges which: sind jedoch nicht zahlbar aufgrund von Steuern, Abgaben oder amtlicher Gebühren, die
(a) auf andere Weise als durch Einbehalt (a) are payable otherwise than by oder Abzug von zahlbaren Beträgen zu withholding or deduction from amounts entrichten sind; oder payable; or
168 (b) wegen gegenwärtiger oder früherer (b) are payable by reason of the Noteholder persönlicher oder geschäftlicher having, or having had, some personal or Beziehungen des Anleihegläubigers zu business connection with the country in dem Land, in dem die Emittentin oder which the Issuer or the Guarantor has its die Garantin ihren Hauptsitz oder domicile or tax residence, and not Steuersitz hat, zu zahlen sind, und nicht merely by reason of the fact that allein deshalb, weil Zahlungen auf die payments in respect of the Notes are, or Schuldverschreibungen aus Quellen in for purposes of taxation are deemed to dem Land, in dem die Emittentin oder be, derived from sources in, or are die Garantin ihren Hauptsitz oder secured in, the country where the Issuer Steuersitz hat, stammen (oder für or the Guarantor has its domicile or tax Zwecke der Besteuerung so behandelt residence; or werden) oder dort besichert sind; oder
(c) die aufgrund (i) einer Richtlinie oder (c) are to be withheld or deducted pursuant Verordnung der Europäischen Union to (i) any European Union Directive or betreffend die Besteuerung von Regulation concerning the taxation of Zinserträgen oder (ii) einer interest income, or (ii) any international zwischenstaatlichen Vereinbarung, treaty, agreement or understanding eines zwischenstaatlichen Abkommens relating to such taxation and to which the oder einer zwischenstaatlichen Netherlands or the Federal Republic of Verständigung über deren Besteuerung, Germany or the European Union is a an der die Niederlande, die party, or (iii) any provision of law Bundesrepublik Deutschland oder die implementing, or complying with, or Europäische Union beteiligt ist, oder (iii) introduced to conform with, such einer gesetzlichen Vorschrift, die diese Directive, Regulation, treaty, agreement Richtlinie, Verordnung, Vereinbarung, or understanding; or Abkommen oder Verständigung umsetzt oder befolgt, abzuziehen oder einzubehalten sind; oder
(d) aufgrund des niederländischen (d) are payable by reason of the Dutch Quellensteuergesetzes 2021 (Wet Withholding Tax Act 2021 (Wet bronbelasting 2021) zahlbar sind. bronbelasting 2021).
Die Garantin ist keinesfalls verpflichtet, In any event, the Guarantor will have no zusätzliche Beträge in Bezug auf einen obligation to pay additional amounts deducted Einbehalt oder Abzug von Beträgen zu zahlen, or withheld by the Issuer, the relevant Paying die gemäß Sections 1471 bis 1474 des U.S. Agent or any other party in relation to any Internal Revenue Code (in der jeweils geltenden withholding or deduction of any amounts Fassung oder gemäß Nachfolgebestimmungen), required by the rules of U.S. Internal Revenue gemäß zwischenstaatlicher Abkommen, gemäß Code Sections 1471 through 1474 (or any den in einer anderen Rechtsordnung in amended or successor provisions), pursuant to Zusammenhang mit diesen Bestimmungen any inter-governmental agreement, or erlassenen Durchführungsvorschriften oder implementing legislation adopted by another gemäß mit dem Internal Revenue Service jurisdiction in connection with these provisions, geschlossenen Verträgen von der Emittentin, or pursuant to any agreement with the U.S. der jeweiligen Zahlstelle oder einem anderen Internal Revenue Service ("FATCA Beteiligten abgezogen oder einbehalten wurden Withholding") or indemnify any investor in ("FATCA-Steuerabzug") oder Anleger in relation to any FATCA Withholding. Bezug auf einen FATCA-Steuerabzug schadlos zu halten.
169 "Vereinigte Staaten" bezeichnet die "United States" means the United States of Vereinigten Staaten von Amerika America (including the States thereof and the (einschließlich deren Bundesstaaten und des District of Columbia) and its possessions District of Columbia) sowie deren Territorien (including Puerto Rico, the U.S. Virgin Islands, (einschließlich Puerto Rico, der U.S. Virgin Guam, American Samoa, Wake Island and Islands, Guam, American Samoa, Wake Island Northern Mariana Islands). und Northern Mariana Islands).
5. Diese Garantie und alle darin enthaltenen 5. This Guarantee and all undertakings contained Vereinbarungen stellen einen Vertrag herein constitute a contract for the benefit of the zugunsten der jeweiligen Anleihegläubiger als Noteholders from time to time as third party begünstigte Dritte gemäß § 328 Absatz 1 BGB beneficiaries pursuant to § 328 (1) of the BGB. dar. Sie begründen das Recht eines jeden They give rise to the right of each such Anleihegläubigers, die Erfüllung der hierin Noteholder to require performance of the eingegangenen Verpflichtungen unmittelbar obligations undertaken herein directly from the von der Garantin zu fordern und diese Guarantor, and to enforce such obligations Verpflichtungen unmittelbar gegenüber der directly against the Guarantor. Garantin durchzusetzen.
Jeder Anleihegläubiger kann im Falle der Any Noteholder has the right in case of a Verletzung von Zahlungsverpflichtungen payment default under the Terms and gemäß den Anleihebedingungen der Conditions of the Notes to enforce this Schuldverschreibungen zur Durchsetzung Guarantee by filing a suit directly against the dieser Garantie auf erstes Anfordern hin Guarantor on first demand without the need to unmittelbar gegen die Garantin Klage erheben, take prior proceedings against the Issuer ohne dass zunächst ein Verfahren gegen die Emittentin eingeleitet werden müsste.
6. Die Hauptzahlstelle handelt nicht als 6. The Principal Paying Agent does not act in a Treuhänder oder in einer ähnlichen Eigenschaft fiduciary or in any other similar capacity for the für die Anleihegläubiger. Noteholders.
7. Verschiedene Bestimmungen 7. Miscellaneous Provisions
(a) Diese Garantie unterliegt deutschem (a) This Guarantee will be governed by, and Recht. construed in accordance with, German law.
(b) Nicht ausschließlich zuständig für (b) The District Court (Landgericht) in sämtliche im Zusammenhang mit der Frankfurt am Main will have non- Garantie entstehenden Klagen oder exclusive jurisdiction for any action or sonstige Verfahren ist das Landgericht other legal proceedings arising out of or Frankfurt am Main. in connection with the Guarantee.
(c) Jeder Anleihegläubiger kann in jedem (c) On the basis of a copy of this Guarantee Rechtsstreit gegen die Garantin und in certified as being a true copy by a duly jedem Rechtsstreit, in dem er und die authorised officer of the Principal Garantin Partei sind, seine Rechte aus Paying Agent, each Noteholder may dieser Garantie auf der Grundlage einer protect and enforce in its own name its von einer vertretungsberechtigten rights arising under this Guarantee in Person der Hauptzahlstelle beglaubigten any legal proceedings against the Kopie dieser Garantie ohne Vorlage des Guarantor or to which such Noteholder
170 Originals im eigenen Namen and the Guarantor are parties, without wahrnehmen und durchsetzen. the need for presentation of this Guarantee in such proceedings.
(d) Die Hauptzahlstelle verpflichtet sich, (d) The Principal Paying Agent agrees to das Original dieser Garantie bis zur hold the original copy of this Guarantee Erfüllung sämtlicher Verpflichtungen in custody until all obligations under the aus den Schuldverschreibungen und Notes and this Guarantee have been dieser Garantie zu verwahren. fulfilled.
8. Für Änderungen der Bedingungen der Garantie 8. In relation to amendments of the terms of the durch Beschluss der Anleihegläubiger mit Guarantee by resolution of the Noteholders with Zustimmung der Garantin gilt § 12 der the consent of the Guarantor, § 12 of the Terms Anleihebedingungen entsprechend. and Conditions applies mutatis mutandis.
9. Diese Garantie ist in deutscher Sprache 9. This Guarantee is written in the German abgefasst und mit einer Übersetzung in die language and provided with an English englische Sprache versehen. Der deutsche language translation. The German text will be Wortlaut ist allein rechtsverbindlich. Die the only legally binding version. The English englische Übersetzung dient nur zur language translation is provided for Information. convenience only.
Kassel, im Januar 2021 Kassel, in January 2021
Wintershall Dea GmbH Wintershall Dea GmbH
______
Wir nehmen die obenstehenden Erklärungen zugunsten We hereby accept all of the above declarations in der Anleihegläubiger ohne Obligo, Haftung oder favour of the Noteholders without recourse, warranty Rückgriffsrechte auf uns an. or liability on us.
Citibank Europe plc Citibank Europe plc
______
171 DESCRIPTION OF THE ISSUER
General Information
Incorporation, Registered Office, Duration, Name
The Issuer’s legal and commercial name is Wintershall Dea Finance 2 B.V.
The Issuer was incorporated on 18 December 2020 and operates as a private limited liability company (besloten vennootschap met beperkte aansprakelijkheid (B.V.)) under the laws of the Netherlands. The Issuer has been incorporated for an indefinite period of time. The Issuer is registered with the trade register of the Dutch Chamber of Commerce (Handelsregister van de Kamer van Koophandel) under number 81231571. The Issuer’s Legal Entity Identifier (LEI) is 529900DV88FUQZSVVL48.
The Issuer’s corporate seat is The Hague, the Netherlands. The Issuer’s registered office and place of business is Bogaardplein 47, 2284 DP Rijswijk, the Netherlands. Its telephone number is: +31 703583100.
Since its incorporation there have been no relevant recent events particular to the Issuer which are to a material extent relevant to the evaluation of the Issuer’s solvency.
Corporate Purpose
Pursuant to Article 2 of the Issuer’s articles of association dated 18 December 2020, the objects of the Issuer are (a) to incorporate, to participate, in any way whatsoever in, to manage and supervise and to finance subsidiaries, group companies and third parties, (b) to borrow, to lend and to raise funds, including the issue of bonds, debt instruments or other securities or evidence of indebtedness and to enter into agreements in connection with the aforementioned activities, (c) to render advice and services, (d) to grant guarantee, to bind the company and to pledge or to otherwise encumber its assets for its own obligations and for obligations of subsidiaries, group companies and third parties, (e) to acquire, alienate, encumber, manage and exploit registered property and items of property in general, (f) to trade currencies, securities and items of property in general, (g) to perform any and all activities of an industrial, financial or commercial nature and to do all that is connected with (a) to (g) or may be conductive thereto, all to be interpreted in the broadest sense.
Fiscal Year
The Issuer’s fiscal year corresponds to the calendar year. In 2020, the Issuer had a short fiscal year from 18 December 2020 (date of incorporation) to 31 December 2020.
Auditors
It is intended to mandate KPMG Accountants N.V. ("KPMG Netherlands"), Laan van Langerhuize 1, 1186 DS Amstelveen, the Netherlands, as auditor of the Issuer.
Share Capital
The issued share capital of the Issuer amounts to €1.00, divided into 1 share with a nominal value of €1.00 which is fully issued and paid-up. The Issuer does not have authorised but unissued capital.
Major Shareholder
The Guarantor is the sole shareholder of the Issuer.
Organisational structure
The Issuer is a wholly-owned subsidiary of the Guarantor and belongs to the Group.
The Issuer does not have any subsidiaries of its own and is dependent upon administrative and management services provided by the Guarantor and certain subsidiaries of the Guarantor.
172 Business Overview
The main purpose of the Issuer is to act as finance company within the Group including the issuance of bonds. The principal activity of the Issuer is the raising of capital in order to lend funds to companies of the Group. Beside these operations, the Issuer has no further material activities.
Legal and Arbitration Proceedings
From 18 December 2020, the date of its incorporation, to the date of this Prospectus, the Issuer has not been involved in any government, legal or arbitration proceedings against or affecting the Issuer, nor is the Issuer aware of any pending or threatened proceedings, which (in either case) may have or have had in the recent past significant effects on the financial position or profitability or results of operations of the Issuer.
Administrative, Management and Supervisory Bodies of the Issuer
Managing Board
Gijsbertus Wilhelmus van den Brink is the sole managing director of the Issuer. Mr van den Brink does not hold other material board memberships outside of the Group.
The business address of the Issuer’s sole managing director is the same as the Issuer’s business address.
Conflicts of Interest
The Issuer is not aware of any conflicts of interest between the duties of Mr. van den Brink to Wintershall Dea Finance 2 B.V. and his private interests or other commitments.
Historical Financial Information for the Issuer
The Issuer has not issued any financial statements since its incorporation. However, the Issuer has prepared an opening balance sheet as of 18 December 2020. The opening balance sheet has been prepared in accordance with Part 9 of Book 2 of the Dutch Civil Code.
Opening Balance Sheet
As of 18 December 2020 (€) (unaudited) A. Fixed assets ...... 1.00 B. Current assets ...... - Assets ...... 1.00 A. Equity ...... 1.00 B. Provisions ...... - C. Liabilities ...... - Equity and Liabilities ...... 1.00
Significant Changes in Financial Performance
There has been no significant change in the financial performance of the Issuer since 18 December 2020.
Trend Information
There has been no material adverse change in the prospects of the Issuer since 18 December 2020.
173 Recent Events
On 8 January 2021, the Guarantor has made a share premium contribution to the Issuer in the amount of EUR 10,000,000.
Other than this additional share premium contribution, the Issuer is not aware of any recent events particular to the Issuer (i.e. occurring after the incorporation of the Issuer) that are to a material extent relevant to the evaluation of the Issuer’s solvency.
174 DESCRIPTION OF THE GUARANTOR AND THE GROUP
General Information
Incorporation, Registered Office, Duration, Name, Website
The Guarantor was incorporated on 15 November 2006 under the laws of Germany as a private limited liability company (Gesellschaft mit beschränkter Haftung). It is registered with the commercial register (Handelsregister) of the local court (Amtsgericht) of Lüneburg, Germany, under registration number HRB 200519 and has its registered seat at Celle, Germany, and its business address at Friedrich-Ebert-Straße 160, 34119 Kassel, Germany and Überseering 40, 22297 Hamburg, Germany (telephone number: +49 561 301-0). The duration of the Guarantor is indefinite. The Guarantor’s Legal Entity Identifier (LEI) is 529900PP4O3OCBMO9C52.
The Guarantor’s legal and commercial name is "Wintershall Dea GmbH".
The Guarantor’s website is available at www.wintershalldea.com. The information on the Guarantor’s website does not form part of this Prospectus unless it is explicitly incorporated by reference into this Prospectus.
Corporate Purpose
Pursuant to Article 2(1) of the Guarantor’s articles of association (Gesellschaftsvertrag) dated 29/30 April 2019 (the "Articles of Association"), the corporate purpose of the Guarantor is to explore, generate, process, store and distribute petroleum, natural gas and other resources, along with the resulting main and co-products, and to trade in all of the above resources and commodities, as well as to construct and operate natural gas pipeline systems.
The Guarantor is further entitled to establish branch offices in Germany and abroad, invest in other companies, lease, acquire and undertake formations of such companies and enter into all business transactions that are suitable for promoting its business purpose. The Guarantor is also entitled to act as an organ within the framework of a fiscal inter-company relationship (steuerliches Organschaftsverhältnis). The shareholders’ meeting (Gesellschafterversammlung) of the Guarantor (the "Shareholders’ Meeting") may authorise the Guarantor’s management to conclude a control and profit and loss transfer agreement (Beherrschungs- und Ergebnisabführungsvertrag).
Fiscal Year
As a result of the Merger, the Guarantor declared the period from 1 May 2019 to 31 December 2019 a short fiscal year. From 1 January 2020, the Guarantor’s fiscal year corresponds to the calendar year.
Auditors
The audited consolidated financial statements of Wintershall for the financial year ended 31 December 2018 and the short fiscal year ended 30 April 2019, in each case together with the related notes thereto, (collectively, the "Wintershall Historical Financial Information"), incorporated by reference into this Prospectus, have been audited by KPMG AG Wirtschaftsprüfungsgesellschaft ("KPMG Germany"), The Squaire, Am Flughafen, 60549 Frankfurt am Main, Germany, the independent auditor of Wintershall as stated in their reports appearing therein.
The audited consolidated financial statements of the Company as of and for the short financial year ended 31 December 2019, incorporated by reference into this Prospectus, have also been audited by KPMG Germany, independent auditor of the Company, as stated in their report appearing therein.
The audited consolidated financial statements of Dea for the financial year ended 31 December 2018 and the short fiscal year ended 30 April 2019, in each case together with the related notes thereto, (collectively, the "Dea Historical Financial Information"), incorporated by reference into this Prospectus, have been audited by PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft with registered seat in Frankfurt am Main, Germany (a member of PricewaterhouseCoopers International, a company limited by guarantee registered in England and Wales, United Kingdom), through its Hamburg office, Alsterufer 1, 20354 Hamburg, Germany ("PwC"), independent auditors of Dea as stated in their reports appearing therein.
175 KPMG Germany and PwC are members of the German Chamber of Public Accountants (Wirtschaftsprüferkammer). KPMG Germany and PwC have conducted their audits of the German language versions of the aforementioned consolidated financial statements in accordance with section 317 German Commercial Code (Handelsgesetzbuch) and the German generally accepted standards for the audit of financial statements promulgated by the Institute of Public Auditors in Germany (Institut der Wirtschaftsprüfer in Deutschland e.V., IDW).
Share Capital
As of 30 September 2020, the Guarantor had a registered share capital (Stammkapital) of €189,437,527.00, divided into (i) 156,716,500 ordinary shares (Stammgeschäftsanteile), each with a nominal value (Nennbetrag) of €1.00 (together, the "Ordinary Shares" and each an "Ordinary Share") and (ii) 32,721,027 non-voting preference company shares (Vorzugsgeschäftsanteile), each with a nominal value (Nennbetrag) of €1.00 (together, the "Preference Shares" and each a "Preference Share"). All shares have been fully paid up. The Preference Shares entitle to outstanding arrears on an advanced dividend (nachzahlbarerer Vorausgewinnanteil) of €2.6129986690209 per Preference Share out of the balance-sheet profit of the Guarantor, as further set out in the Articles of Association (please also See "Risk Factors — Risks relating to the Notes — Interest payments under the Notes may be deferred at the option of the Issuer"). The entitlement to an advanced dividend and the exclusion of any voting rights in respect of Preference Shares will be limited in time until 30 April 2022. BASF as the shareholder currently holding Preference Shares will be in a position to convert them into Ordinary Shares at any time in accordance with applicable statutory provisions and requirements (please also See "Administrative, Management and Supervisory Bodies of the Guarantor — Shareholders' Agreement").
Major Shareholders
BASF, a European stock corporation (Societas Europaea) headquartered in Ludwigshafen am Rhein, Germany, is a global chemicals company that is active worldwide in more than 80 countries, including in Europe, North America, Asia-Pacific, South America, Africa and Middle-East with a portfolio ranging from chemicals, plastics, performance products, crop protection products to oil and gas. In the gas and oil industry, BASF supplies a wide range of products for different applications for oil fields, including drilling, cementing, stimulation, production and enhanced oil recovery. BASF is a shareholder of the Company, holding as of the date of this Prospectus together 67 per cent. of the Ordinary Shares (Stammgeschäftsanteile) as well as all Preference Shares in the Company, translating into an arithmetical participation of BASF in the registered share capital (Stammkapital) of the Company of 72.7 per cent.
LetterOne, a Luxembourg public limited company (société anonyme) with its registered seat in Luxembourg, is a privately-owned investment holding company targeting investments in the energy sector. Pursuant to the Merger, LetterOne contributed its 100 per cent. stake in Dea into the Company and received by way of a capital increase shares in the Company as compensation. As of the date of this Prospectus, LetterOne holds the remaining 33 per cent. of the Ordinary Shares, translating into an arithmetical participation of LetterOne in the registered share capital (Stammkapital) of the Company of 27.3 per cent.
As of the date of this Prospectus, LetterOne and BASF together hold 100 per cent. of the shares in the Company and are hereinafter jointly referred to as the "Shareholders".
Ratings
The Guarantor has received the following ratings:
• "Baa2" (outlook: negative) from Moody’s Investors Service.
• "BBB" (outlook: stable) from Fitch Ratings.
A credit rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension or withdrawal at any time by the relevant rating agency.
176 Business Overview
Overview
The Group is the leading independent European gas and oil company with full lifecycle capabilities across exploration, development and production activities, complemented by investments in stable midstream assets.
The Group comprises Wintershall Dea GmbH and its subsidiaries, including Wintershall Dea International GmbH (formerly Wintershall Dea Deutschland AG, formerly DEA Deutsche Erdoel AG). The Group was formed on 1 May 2019 through the combination of the:
• oil and gas business (including the midstream business) of BASF which was held in Wintershall Holding GmbH (as the Company was named until the Merger) and its subsidiaries; and
• the oil and gas business of LetterOne, comprising Dea and its subsidiaries (the "Merger").
The Merger created the largest independent European exploration and production ("E&P") company based on production and 2P reserves. The Merger brought together two German companies, each with over 120 years of history. Both legacy organizations had projects around the world that built best-in-class expertise and capabilities, which, in the view of the Group, position Wintershall Dea as a leading operator and a partner of choice worldwide. The Group’s primary mission is the secure, efficient, environmentally-conscious and sustainable production of natural gas and crude oil. It connects cost-effective energy sources from its balanced, long-life asset portfolio to strategic OECD markets. The Group believes that its gas-dominant portfolio is well suited to play an important role in the energy transition in the coming years.
In the assessment of the Group, Wintershall Dea benefits from a large, diversified and low-cost portfolio extending from beyond the Arctic circle in Norway to the southern-most platform in the world in Argentina. Its hydrocarbon products are priced on varying bases, including Brent linked and fixed gas prices, with approximately 50 per cent. of its production priced pursuant to contracted and/or regulated prices and the remainder priced pursuant to Brent, liquids or European spot gas price providing a natural dampening effect to the earnings volatility. Combining the large, low-cost portfolio and the diversified pricing mechanisms creates, it the assessment of the Group, a business profile that is able to generate free cash flow and remains profitable also in a low commodity price environment. The Group’s core production, development and exploration assets are located in Northern Europe, Russia, the Middle East and North Africa ("MENA") and Latin America ("LATAM"). Its material assets in North Africa and Russia, as well as its investment in the Ogarrio field in Mexico, benefit from investment guarantees provided by the Federal Republic of Germany (also see "Insurance" below). These investment guarantees provide protection against a number of political risks, including expropriation, nationalization, civil wars, wars or other armed conflicts and payment embargoes or moratoria, under certain conditions.
The Group operates predominantly via a partnership model with long-term joint venture arrangements with some of the world’s leading oil and gas companies. Additionally, the Group has economic interests in onshore and offshore natural gas transportation pipelines in Germany and Northern Europe, including the transportation network of GASCADE and Nord Stream 1 and its onshore connecting pipelines OPAL and NEL, and is a lender together with major European energy companies, in an additional offshore gas pipeline project, Nord Stream 2.
Headquartered in Kassel and Hamburg, Germany, the Group is active in 13 countries and had approximately 2,400 full time equivalent ("FTE") employees as of 30 September 2020.
The Group’s average aggregated working interest production during the nine months ended 30 September 2020 was 613 mboe/d. As of 31 December 2019, the Group had 1P net entitlement reserves of 3.2 billion boe and 2P net entitlement reserves of 3.9 billion boe (a 1P to 2P ratio of 82 per cent.) with a 2P reserve life of 18 years (based on net entitlement figures). The Group’s 2P net entitlement reserves consisted of 70 per cent. gas and 30 per cent. liquids, with 61 per cent. located in Russia, 24 per cent. in Europe, 6 per cent. in Latin America and 9 per cent. in MENA. In addition to its reserves base, the Group also had 2C resources of 2.1 billion boe, thereof 1.2 billion boe economically viable.
Following the Merger, the Group targets pre-tax cash synergies of at least €200 million per year by year 2022, which are intended to be approximately evenly divided between operating synergies and capital expenditure and production-
177 related synergies. As of 31 December 2020, the active phase of the post-merger integration process was completed. All non-IT related Transition Service Agreements have been terminated, whilst certain IT-related transitional service agreements are expected to be terminated in the first half of 2021. As part of the post-Merger integration process the Group negotiated redundancy plans with work councils and unions to reduce the headcount by approximately 1,000 mainly in Germany and Norway. By the end of 2020, all exit agreements have been signed and all remaining employees who have signed exit agreements are expected to leave the company within 2021.
The tables below set out certain information relating to the regions and countries in which the Group’s key production and development assets as at and for the periods indicated are located.
Portfolio Overview
Working interest production 1P Reserves 2P Reserves (1) (3) (3) (mboe/d) (MMboe) (MMboe) Year ended Nine-month period As of 31 December ended 31 December 30 September 2018 2019 2019 2020 Norway ...... 140 146 149 479 682 Germany...... 54 49 45 172 226 UK/Netherlands/ Denmark...... 9 6 7 12 21 Russia ...... 252 289 287 2,137 2,369 MENA ...... 37(2) 51(2) 51(2) 240 374 LATAM ...... 74 76 74 162 228 Total ...... 566 617 613 3,202 3,898
Notes:
(1) The Group’s production is presented on a working interest basis. (2) Excluding Libya onshore production volumes. (3) Reserves figures 2019 are independently evaluated by D&M. Individual figures might not sum up properly due to rounding.
History and Development
The timeline below sets out certain events in the Group’s corporate history.
1894-1949 Wintershall (1894) and Dea (1899) founded; first own oil wells for Dea (1901); first oil discovery for Wintershall (1931).
1950-1989 Acquisition of Wintershall by BASF (1969); Wintershall starts first activities for the subsequent production of gas and oil in Peru (1954) together with Dea, Libya (1958), Canada (1959), Norway (1973) and Argentina (1978).
Acquisition of Dea by Texaco (1966); Dea starts production in oil fields in Egypt (1983); Mittelplate Drilling and Production Island commences production in the North Sea (1987); acquisition of Dea by RWE (1988).
1990 Wintershall starts strategic partnership with Gazprom.
1998 German upstream company Deminex broken up, with Wintershall acquiring Argentinian, Russian and Azerbaijani assets and RWE-Dea acquiring Norwegian and Egyptian assets.
2002 Sale of Dea downstream business.
2006 Wintershall agrees an asset swap with Gazprom including shares in Yuzhno Russkoye and WINGAS.
178 2013 Wintershall completes asset swap with Equinor Energy ASA (formerly Statoil) whereby Wintershall received shares in three producing fields in Norway and Equinor Energy ASA received shares in the Edvard Grieg facility.
2015 BASF (through Wintershall) and Gazprom complete an asset swap including shares in Achimov 4A and 5A and all of Wintershall’s remaining shares in WINGAS. Dea acquired by L1 Energy; Dea completes E.ON E&P Norge Acquisition.
2019 Merger between Wintershall and Dea completed.
Wintershall
Since Wintershall’s inception in 1894, it has grown both organically and through acquisitions. It completed its first discovery of crude oil in 1931 and subsequently produced liquids in Peru (1954) and Canada (1959). It was acquired by BASF in 1969. It has since continued expanding its production capabilities with entries into Libya (1958), the Netherlands (1965), Norway (1973), Argentina (1978), Russia (1992) and the United Kingdom (2011). Its first major midstream investments were made in 1991. In 1998, the German upstream company Deminex (in which it held an 18.5 per cent. interest) was broken up. Following this dissolution, Wintershall retained Deminex’s Argentinian, Russian and Azerbaijani assets. Wintershall completed the takeover of Clyde Netherlands B.V. in 2002 and Norwegian RevusEnergy ASA in 2008. In 2013, Wintershall further expanded its production in Norway with its acquisition of assets from Equinor Energy AS. In November 2018, Wintershall acquired a 10 per cent. interest in Ghasha, the largest gas and condensate fields hub to be developed in the UAE.
Dea
Since Dea’s founding in 1899, it has grown both organically and through acquisitions. It operated its first oil well in 1901. It was taken over by Texaco in 1966 and acquired by RWE in 1988. It has since continued expanding its production capabilities with entries into Kazakhstan (1992), Denmark (2003), Algeria (2002), the UK (2012), and Mexico (2017-2018). Following the dissolution of the German upstream company Deminex (of which it held an 18.5 per cent. interest), it retained all Deminex’s Norwegian and Egyptian assets. In 2015, Dea was acquired from RWE by L1 Energy, and that same year, it completed the acquisition of E.ON E&P Norge, strengthening its Norwegian portfolio. In 2017, Dea acquired participation and operatorship of the Ogarrio field in Mexico, significantly expanding its operations in the country. In 2019, Dea completed the acquisition of Sierra Oil & Gas, an independent Mexican oil and gas company with interests in several exploration and appraisal blocks including the Zama discovery.
The Merger
On 1 May 2019, Wintershall and Dea merged to form the Group.
Pursuant to the Merger, LetterOne contributed its stake in Dea to Wintershall and received shares in the combined company. As a result of the Merger, BASF initially holds 67 per cent. of the Group and LetterOne holds 33 per cent. of the Ordinary Shares of the Company. This split was calculated based on the value of the two companies’ E&P businesses. To consider the value of the midstream business of Wintershall Dea, BASF further received Preference Shares which results in an arithmetical participation of BASF in the registered share capital (Stammkapital) of the Company of 72.7 per cent. The Preference Shares will convert into Ordinary Shares of the Company on 1 May 2022 or upon a potential future initial public offering ("IPO"), whichever comes earlier.
Following the Merger, the Group targets pre-tax cash synergies of at least €200 million annually from 2022 onwards, which are intended to be approximately evenly divided between operating synergies on the one hand and capital expenditure and production-related synergies on the other hand. The Group expects to realise cost savings through the combination of procurement, exploration and research and development functions. The Group also intends to optimise cash flow and capital expenditure by actively managing its combined operating portfolio, including by focusing on the most profitable assets and most probable discoveries. The Group expects to incur integration costs with an impact on the income statement of approximately €400 million between 2019 and 2021, comprising costs for the consolidation and integration of both legacy companies as well as the reduction of the workforce of the Group.
179 As part of the post-Merger integration process the Group negotiated redundancy plans with works councils and unions to reduce the headcount by approximately 1,000, mainly in Germany and Norway. By the end of 2020, all exit agreements have been signed. In addition, all non-IT transitional service agreements with BASF have been terminated by 31 October 2020.
The Shareholders continue to evaluate the optimal capital structure and strategy for the Group, including a potential future IPO.
Our strengths
The Group believes that the below strengths help to differentiate us from our competitors.
Leading independent European gas and oil company with a large and diversified portfolio
The Group believes that the quality, scale and diversification of its portfolio positions it as the leading independent European gas and oil company and provides a solid foundation to compete with larger U.S. and international major players globally. The Group has a large, diverse portfolio of assets in multiple geographies, including production, development and exploration assets in Germany, Norway, Russia, Egypt, Mexico and Argentina and exploration and development projects in the UAE and Brazil. As at 31 December 2019, the Group had net entitlement 1P reserves of 3.2 billion boe, net entitlement 2P reserves of 3.9 billion boe and net contingent resources 2C of 2.1 billion boe, thereof 1.2 billion boe economically viable contingent resources. 70 per cent. of the Group’s 2P reserves are gas. The 2P reserves contain a significant upside proportion of 42 per cent. of undeveloped reserves. The 1P reserve life of the Group’s assets as at 31 December 2019 was 15 years and the 2P reserve life was 18 years (based on net entitlement figures). The Group has interests in assets across four principal regions (Northern Europe, Russia, Middle East & North Africa and Latin America) and production is diversified across these four principal regions. For the nine-month period ended on 30 September 2020, the Group’s production averaged 613 mboe/d (on a working interest basis), with 46.8 per cent. sourced from Russia, 32.8 per cent. from Northern Europe, 12.1 per cent. from Latin America and 8.3 per cent. from the Middle East & North Africa
The Group has a long history of activity in each country of operation and has interests in a number of world-class assets, including:
• Achimov 1A, 4A and 5A (Russia)
o Block 1A (partners: Wintershall Dea 50%; Gazprom 50%) of the Achimov formation of the Urengoy oil, gas and condensate field (hereinafter referred to as "Achimov 1A") (Russia) contributes natural gas and condensate from the Achimov formation in the Urengoy field which was the largest gas field in the world at the time of discovery, with 143 mboe/d net production to the Group in the nine months ended 30 September 2020 and an estimated project life of approximately 40 years.
o Block 4A and 5A (partners: Gazprom 50.01%; Wintershall Dea 25.01%; Gazprom Finance B.V: 24.98%) Achimov formation of the Urengoy oil, gas and condensate field (hereinafter referred to as "Achimov 4A and 5A") (Russia) represents the next milestone in the successful development of the Achimov formation. The first construction phase started in 2018 with 40 production wells. Production start-up readiness is expected at the end of the first quarter of 2021 and significant production volumes later in 2021. The second phase execution started in 2020 and consists of over 100 production wells.
• Yuzhno Russkoye (Russia) (partners: Gazprom 40%; Wintershall Dea 35%; OMV 25%) contributed 141 mboe/d net production to the Group in the nine months ended 30 September 2020, as of the date of this Prospectus extracting gas principally from the Cenomanian deposit with 139 wells. Production from the Turonian deposit is expected to extend plateau production with over 120 further wells. The estimated project life is around 40 years.
180 • Aasta Hansteen (Norway) (partners: Equinor 51%; Wintershall Dea 24%; OMV 15%; ConocoPhilips 10%) is a gas production centre in the emerging Voering basin in the Norwegian Sea, which uses a SPAR concept unique in the North Sea region. The project area also encompasses a number of undeveloped discoveries in which the Group has participating interests. Production started in December 2018. The net production to the Group in the nine months ended 30 September 2020 was 36 mboe/d.
• Mittelplate (Germany) (Wintershall Dea share: 100%) is the largest and most productive oil field in Germany delivering more than 50 per cent. of domestic oil production. Mittelplate is 100 per cent. owned and operated by the Group and we have successfully established safe and uninterrupted production since 1987 and abides by stringent environmental standards. The net production to the Group in the nine months ended 30 September 2020 was 20 mboe/d.
• Cuenca Marina Austral ("CMA-1") (Argentina) (partners: Total 37.5%; Wintershall Dea 37.5%; Pan American 25%) is the largest and most prolific gas producing license in Argentina, delivering around 16 per cent. of total domestic gas production. The net production to the Group in the nine months ended 30 September 2020 was 50 mboe/d. The shallow water gas assets contain reservoirs producing from approximately 150 wells. There is a project pipeline of several development projects for the coming years.
• West Nile Delta ("WND") (Egypt) (partners: BP 82.75%; Wintershall Dea 17.25%) is predominantly a gas asset in Egypt, which consists of the subsea development of five fields (Taurus, Libra, Giza, Fayoum, Raven). It is one of the largest developments in the Mediterranean Sea, which is expected to deliver close to 1 billion cubic feet per day of gross production when fully on-stream. This corresponds to about 20 per cent. of Egypt’s gas production at the end of 2018. All fields are in production, whereas the Raven field, which is the largest amongst the five fields, started production recently in January 2021 and is in the ramp- up phase. The net production to the Group in the nine months ended 30 September 2020 was 12 mboe/d.
• Zama (Mexico) (partners: Talos Energy 35%; Wintershall Dea 40%; Premier Oil 25%) was acquired through the acquisition of Sierra Oil and Gas. The field was discovered in 2017 and represents one of the largest shallow-water discoveries made globally in the last 20 years. The field represents an important development asset for the future production growth of the company.
• Ghasha Concession (United Arab Emirates) (partners: ADNOC 55%; ENI 25%; Wintershall Dea 10%; OMV 5%; Lukoil 5%) is the largest undeveloped gas and condensate hub in the UAE. As of the date of this Prospectus, production start-up is expected in 2024 and is expected to continue well into the 2040´s.
We believe that the combination of our high-quality gas-dominated asset base and significant near-term development pipeline, positions us well to pursue our strategy.
The Group’s material investments in its North African and Russia assets, as well as its investment in Ogarrio, Mexico, benefit from investment guarantees provided by the Federal Republic of Germany for direct investments made by German companies in developing and emerging countries. These investment guarantees provide protection against a number of political risks, including expropriation, nationalization, civil wars, wars or other armed conflicts and payment embargoes or moratoria, under certain conditions.
Our portfolio is primarily gas weighted, with gas volumes accounting for approximately 70 per cent. of our production. In addition to geographical diversification, the Group also benefits from highly diversified product offering, with approximately only 35% of our total production being linked directly to spot Brent and European gas prices, with the majority of our production being priced pursuant to various contractual arrangements including formula-based, index-based and fixed price contracts among others providing a natural dampening effect to earnings volatility.
Resilience through peer-leading production costs
The Group’s portfolio of low-cost assets provides it with a competitive advantage throughout the commodity price cycle, enabling resilience in a low-price environment and enhancing net cash flow when commodity prices are higher. In recent years, the Group has been successful in further reducing our already low average unit production costs. The Group has principally achieved this through cost saving initiatives, realizing economies of scale and increased
181 utilization of technology, innovation and digitalization to optimise its overall production performance. The Group’s combined unit production costs decreased by 40 per cent. from $7.1/boe in 2014 to $4.3/boe for the year ended 31 December 2019 and declined even further for the nine months ended 30 September 2020 to $3.8/boe, positioning its portfolio amongst the lowest unit cost producing portfolios in its peer-group (compared to peer group average of $6.5/boe (source: reported data of peers)). As a result of the pandemic, the Group is further aiming to reduce its operating costs through various cost saving initiatives.
The Group expects to be able to extract further pre-tax cash synergies following the Merger, targeting €200 million per annum by 2022. Key areas identified for additional costs savings are the combination of its operating capabilities in Germany and Norway, as well as through joint procurement costs. The Group is committed to continuing to upgrade our portfolio and focus on low-cost, high-margin assets, with the ultimate goal of optimising its capital allocation and cash flow generation.
Strong partnerships with high-quality operators
About 2/3 of the Group’s assets are either operated through long-term joint venture partnerships or directly operated. The Group has a strong track record of establishing mutually beneficial partnerships with large, international holders of resources in valuable energy markets, including Gazprom in Russia, Equinor, Lundin and Aker BP in Norway, BP in Egypt and Total and ConocoPhillips in Argentina, as well as constructive relationships with key national oil companies, including EGPC in Egypt, YPF in Argentina, Pemex in Mexico and ADNOC in Abu Dhabi.
The Group seeks to maintain and grow its operating capabilities in countries where it can add value through the deep knowledge and experience in engineering, reservoir management, execution and operations of its in-house technical and operating team. The Group’s environmental management and drilling expertise at the wholly owned and operated Mittelplate field in Germany is an example of its leadership and operating track record. The asset has over 30 years history of safe and uninterrupted production and is located in the Wadden Sea, a UNESCO World Heritage site. It was developed with a mix of onshore extended reach drilling production wells and offshore multilateral wells from an artificial island, as well as onshore and offshore pipelines and processing facilities.
The Group’s in-house drilling knowledge, particularly our expertise in extended reach drilling, combined with third party expertise in these areas, has contributed to its extraordinary drilling expertise and strong production performance over the last five years. This has allowed us to deliver industry leading levels of production efficiency and cost control. The above is particularly valid for the operated Brage field in the Norwegian North Sea, where it has successfully drilled several over eight kilometres of step out wells from the platform.
Investments in high quality and stable midstream business.
The Group believes that investments in the non-cyclical European gas midstream business provides it with a key differentiating factor compared to many of its European competitors. As Germany continues to gain increasing importance as the largest European gas market and distribution hub in Europe, the midstream business, including a network of strategic entry point pipelines into Germany and elsewhere in Northern and Central Europe, plays an instrumental role in securing the region’s security of supply. According to Eurostat, 38.3 per cent. of the natural gas supply to the EU-countries in 2019 came from Russia. With gas supply from other European countries expected to further decrease in the medium term and pipeline gas from Russia providing a competitive source of gas with a low carbon intensity compared to LNG alternatives, the European reliance on gas imports from Russia is expected to remain strong.
The Group’s economic interest in the low risk midstream business generates approximately €140 million of stable free cash flow annually.
The participation of the Group’s unbundled subsidiaries in the German regulated gas pipeline network provides income from stable fixed tariffs over each regulatory period without exposure to volume or price risks. While the Group’s subsidiaries own and operate both regulated and partly regulated onshore pipelines (including the GASCADE network and factual ownership in both Nord Stream 1 onshore connecting pipelines, OPAL and NEL), the long-term nature of the capacity sale contracts, provides an attractive investment proposition, with no exposure to volume or price risks and a return protection mechanism. This is also true for the Group’s unregulated offshore shareholding in Nord Stream AG ("Nord Stream 1").
182 The Group’s financing of the Nord Stream 2 project, together with the EUGAL pipeline engagement of the Group’s subsidiary, GASCADE, shows its commitment to participating in new infrastructure developments, given their importance to addressing the increasing demand for natural gas imports in Europe.
Robust financial policy underpinned by commitment to investment grade rating and disciplined capital allocation framework
The Group is committed to ensure financial stability through its long-term commitment to investment grade credit ratings. The Group will continue to monitor its business performance with the aim to provide a long-term balance between shareholder returns and profitable growth, whilst maintaining a conservative financial profile and a strong balance sheet through the commodity cycle.
In order to ensure the Group’s credit ratings commitment, its capital distribution framework will prioritize distributions as follows: (i) sustaining and committed capex, (ii) balance sheet, (iii) dividend and (iv) profitable growth. The Group’s investment and M&A plans will be in line with its commitment to investment grade credit ratings.
In response to the substantial drop in commodity prices following the onset of the Covid-19 pandemic, the Group took decisive actions in early 2020: reduced its capital expenditure budget by 30% (capital expenditure budget guidance for financial year 2020: approximately € 1,200 million), exploration budget by 20% (exploration budget guidance for financial year 2020: approximately € 175 million), aimed to reduce operating costs by 10% and together with the shareholders agreed to suspend the common dividend payment in 2020. By implementing such actions, the Group significantly improved its cash flow generation and demonstrated its commitment to investment grade ratings.
Strong ESG performance and well positioned to play an important role in the energy transition.
Despite gains in energy efficiency, global primary energy demand is expected to continue to grow. The Group recognizes the need to meet this demand, as well as the increasing focus from governments, the investor community and societies around the world on reducing the impact on the environment, climate change and the transformation to a low-carbon economy.
With about 70% of the Group’s production being gas, the Group believes to be well positioned to play an important role in the energy transition. In the assessment of the Group, its carbon footprint is already amongst the lowest ones in the peer-group. With 2019 Green House Gas Emissions (GHG) intensity of 10kg of CO2/boe it is almost half of the Association of International Oil & Gas Producers (IOGP) average of approximately 18.5kg of CO2/boe in 2019.
In November 2020, the Group announced a set of climate targets in order to contribute to a global energy transition and to support European Union’s 2050 carbon neutrality target. The Group intends to reduce to net zero its "Scope 1" (direct: greenhouse gas emissions, which occur from sources that are owned or controlled by the Group) and "Scope 2" (indirect: greenhouse gas emissions from the generation of purchased electricity consumed by the Group) greenhouse gas emissions of the operated and non-operated upstream activities at equity share basis by 2030 and bring down the methane intensity to 0.1% by 2025. The Group has committed to the World’s Bank "Zero Flaring by 2030" and has already eliminated routine flaring at operated assets.
Beyond 2030, the intention of the Group is to reduce "Scope 3" (indirect greenhouse gas emissions of the value chain, e.g. "use of sold products" category) emissions as well. The Group intends to invest about €400 million over the next 10 years in various initiatives and projects to reach its ambitious climate targets.
Sustainability is an integral part of the Group’s strategy with a strong focus on climate protection. The Group’s climate approach targets to produce more energy with less emissions and is based on portfolio optimisation, strict emissions management, investments in innovative technologies and the compensation of emissions/nature-based solutions.
In November 2020, Sustainalytics, a leading ESG rating agency, upgraded Wintershall Dea’s ESG risk rating to medium and the Group is now rated in 4th percentile of Oil and Gas producers industry group further emphasizing the Group’s leading ESG credentials.
183 Our strategy
The Group announced its updated "Strategy 2030" on 18 March 2020 and aims to deliver profitable growth while contributing to affordable and lower-carbon energy for the economies and societies the Group serves.
Profitable growth and attractive shareholder returns.
As the legacy growth portfolios of Wintershall and Dea come together, the Group expects to see above average production growth rates over the next couple of years, followed by flat to moderate long-term growth. The Group has a strong project delivery pipeline which it expects to organically enhance its production levels over the next two years. Much of this pipeline is front-weighted, with a significant number of major developments that either have already commenced start-up processes or are due to come on-stream within the next 12-18 months. To that end, the Group is also focused on ensuring our portfolio is balanced across all its core geographies and end-markets. The Group has several major development projects in Norway, in Russia it has one major development and one producing field being further developed, and additional development projects in Egypt, the United Arab Emirates ("UAE"), and pre-final investment decision development projects in Argentina and Mexico.
The Group believes its portfolio benefits from a low-cost base as well as significant pricing diversification, underpinning its ability to generate cash flow in various price scenarios. The Group aims to invest in measured, medium-term profitable production in the most cost-competitive and attractive projects, which in turn is aimed to generate the returns and free cash flow that will underpin attractive dividends for the Group’s shareholders going forward while maintaining its strong balance sheet.
As of the date of this Prospectus, the Group expects free cash flow to be positive for the financial year 2020 (for further information on the calculation of free cash flow, please refer to "Historic Financial Information for the Guarantor and the Group – Non-IFRS Financial Measures" below).
The Group will continue to actively manage its portfolio, including taking advantage of opportunities to streamline it through selected divestments, particularly in relation to very mature assets. Following the Merger, the size of the existing portfolio allows the Group to selectively reduce its asset base, including through partnership arrangements, to ensure that it maintains the most efficient and highest value portfolio possible. For example, as part of this strategy, in 2019 the Group farmed-down to ConocoPhillips 45 per cent. of the Aguada Federal and 50 per cent. of the Bandurria Norte blocks in Argentina. In 2020, the Group and ConocoPhillips acquired Gas y Petroleo del Neuquen S.A.’s participating interest in Aguada Federal (50% working interest remaining in both licenses). While the Group retains operatorship of the blocks, the Group believes that the shale experience of ConocoPhillips, combined with its local expertise, will allow the Group to achieve the highest possible value in the project.
In addition to the profitable growth from the existing and future development projects, as well as the Group’s exploration and M&A activities, its shareholders are expected to receive a competitive return on their investment through cash dividends. Prior to a potential future IPO, the Group will establish a long-term dividend policy commensurate with its commitment to investment grade credit ratings. Taking into account the existing financial policy conditions and subject to prevailing market conditions, the Company intends to propose to the shareholders a common dividend distribution in 2021 (including the payment of a dividend for the Preference Shares).
Continue to demonstrate strong financial discipline to maintain its strong balance sheet and investment grade credit ratings.
The Group’s financial strategy aims to provide a long-term balance between shareholder returns and profitable growth, whilst maintaining a conservative financial profile and balance sheet strength through the commodity price cycle. The Group will aim to ensure financial stability through its long-term commitment to investment grade credit ratings.
As a proof of its commitment to its investment grade ratings, in response to the substantial drop in commodity prices following the onset of the Covid-19 pandemic, in early 2020 the Group reduced its capital expenditure budget by 30% (capital expenditure budget guidance for financial year 2020: approximately € 1,200 million), exploration budget by 20% (exploration budget guidance for financial year 2020: approximately € 175 million), aimed to reduce operating costs by 10% and together with the shareholders agreed to suspend the common dividend payment. These
184 actions have allowed the Group to significantly improve its cash flow generation and as a result maintain its current ratings.
The Group aims to manage capital commitments to generate positive cash flow from operations to sustain its investment capacity, dividend and create financial flexibility through the economic cycles. The Group’s capital distribution framework prioritizes distributions as follows: (i) sustaining and committed investments, (ii) balance sheet strength and maintaining investment grade rating, (iii) dividend and (iv) profitable growth.
Focus on sustainability.
The Group is committed to exploring, developing, producing and transporting gas and oil in the most efficient and responsible way. The Group strives to create trust through transparency, constantly minimizing its ecological and operational footprint, using resources efficiently, enforcing high social standards in all our activities and engaging actively with our stakeholders. The Group has integrated sustainability, encompassing economic, environmental and social responsibility, into its corporate strategy and endeavours to address these issues across all its activities.
The Group reports on its Environment, Social & Governance ("ESG") performance regularly, guided by the international standard of the Global Reporting Initiative, as well as by the oil and gas industry guidance on voluntary sustainability reporting developed by the International Petroleum Industry Environmental Conservation Association ("IPIECA"). Moreover, it supports the recommendations of the Taskforce on Climate-related Financial Disclosure (TCFD) and will implement it over time. As founding member of the Methane Guiding Principles Wintershall Dea the Group intends to join the United Nations Environment Programme (UNEP) and Climate and Clean Air Coalition (CCAC) led Oil and Gas Methane Partnership 2.0 (OGMP 2.0) methane reporting framework. This is an important step towards increased transparency for methane emissions along the entire gas value chain.
The Group is a signatory of the UN Global Compact, a voluntary initiative based on company commitments to support the ten principles for environmental protection, human and labour rights and anti-corruption and to advance UN goals such as the Sustainable Development Goals. In Germany, the Group is also a member of the Extractive Industries Transparency Initiative (EITI), a multi-stakeholder group for improving financial transparency, representing the oil and gas industry.
The Group is committed to reducing the environmental impact of its operations as it seeks to meet future energy demands in a sustainable manner. The Group believes that natural gas and gas infrastructure both will play a crucial role in future energy supply and support the development of innovative technologies for natural gas and other gaseous substances. For example, the Group is one of the partners of the innovation Award of the German Gas Industry and the founders of the "Zukunftswerkstatt Erdgas" project which serves to promote new hydrogen solutions from natural gas. For Nord Stream 1 and Nord Stream 2 state-of-the-art and certified eco-efficiency analyses have been conducted, which confirm the ecological benefits of this new pipeline systems.
Throughout the Group’s operations it plans to continue to maintain a strong focus on its health and safety performance and constantly work with its partners and industry bodies to ensure that best practice and the most up-to-date processes are implemented across the Group. The Group is committed to maintaining a safe working environment and constantly seek to identify, understand and manage any safety or security risks which could impact its employees and operations. Moreover, the Group works towards aligning its internal guidelines and processes with the UN Guiding Principles on Business and Human Rights. For example, Wintershall Dea is part of an industry initiative to promote human rights standards in the supply chain and to support the development of framework conditions. The Group has an inclusive culture with over 60 nationalities represented by its workforce and its share of female employees is 27 per cent., targeting to increase the share of woman to >30% in executive positions (up to two levels below the Management Board of the Company) by 2025.
In addition to the Group’s technical, development and operational expertise, its extensive focus on high ESG and Health, Safety, Environment & Quality ("HSEQ") standards supports its operating success. The Group is committed to operating responsibly and have an integrated ESG and HSEQ framework in place which underpins its cultural development and policies. We have set ourselves a zero-harm goal and are working to prevent any incidents befalling its personnel, facilities or the environment. The Group is committed to constant improvement in minimizing its ecological footprint and use of resources. Over 70 per cent of its current equity production is from cleaner fuel, low-
185 carbon gas with no routine flaring in its operations. Additionally, the Group is an active member of the Methane Guiding Principles initiative.
The Group had good HSEQ performance levels in the first nine months of 2020, including a Lost Time Incident Frequency Rate ("LTIF") of 0.68 LTIF as of September 30, 2020, well below the 0.83 LTIF recorded more broadly in Europe by the International Association of Oil & Gas Producers in 2019 (latest available data). LTIF refer to the number of lost-time injuries within a given accounting period, relative to the total number of hours worked in that period.
Attractive and resilient upstream portfolio.
The Group expects continued high volatility in commodity prices, as a result of the interplay between rising energy demand, OPEC oil production quotas and the uncertainty around the outcome of the COVID-19 pandemic. The Group believes that its competitive position is underpinned by the efficiency of scale, strong operating capabilities and competitive operating costs. The Group believes that due to the Merger it is better equipped to upgrade its portfolio through strategic optimisation measures and to further reduce its already low production costs, which averaged $ 3.8 per boe in the nine months ended 30 September 2020 (three month ended 30 September 2020: average of $ 3.7 per boe). The structure of its portfolio foresees the development of each business unit to a material scale to be able to effectively exploit new opportunities and realise operating efficiencies presented in the market, while simultaneously being relevant player and impactful with local stakeholders.
Established upstream business units: Germany, Norway, Russia, Egypt and Argentina
Wintershall Dea has been present in these countries for decades. Each of these countries is a well-established hydrocarbon province and its positions there play an important role in its portfolio as of the date of this Prospectus. For Wintershall Dea, these countries contribute significant cash flow to its business and are delivering material production volumes. The Group believes that being a material player in each of the countries makes it relevant to local stakeholders and provides the scale it needs to deploy its operating capabilities and standards in a cost- competitive way. Beside the important financial- and production volume contribution of these countries to the overall portfolio, it also benefits largely from its German engineering heritage and the decades of operational experience in these countries. The Group will continue to focus on production efficiency and uptime, developing its portfolio of existing projects, conducting new exploration and appraisal drilling, where applicable, with a view to accessing further potential growth opportunities, in line with its sustainability goals.
Growth upstream business units: UAE, Brazil, Mexico
Wintershall Dea has entered these high potential countries in order to build material scale and add profitable growth for the company. The Group has limited or no production in these countries as of the date of this Prospectus. Brazil and Mexico offer an attractive suite of exploration and appraisal opportunities. In Mexico, Wintershall Dea already participates in the sizeable Zama discovery and also participates in two successful exploration discoveries drilled in 2020. In the UAE, Wintershall Dea has a position in the world-scale Ghasha development project. Thanks to its already significant investments in these countries and the availability of attractive growth opportunities, the Group plans to grow these business units over time to a material scale, comparable in size to its established business units.
Other upstream business units: Algeria, Libya and the Southern North Sea
These units are relatively small contributors to the Group’s production today. The Group intends to continue to review these positions, in order to improve its scale and growth potential or to exit.
A high quality and stable midstream business.
Wintershall Dea has been active in German onshore natural gas transportation activities since the early 1990s and expanded to offshore systems later on. The Group believes that its presence in the larger gas value chain, from upstream production to the customer, enhances its competitiveness and financial profile. The midstream business generates around €140 million annually of stable free cash flow to the Group which more than covers all of Group’s debt servicing requirements as of the date of this Prospectus. Returns and cash flow from these operations provide financial support to the inherently more cyclical upstream business, which in turn supports our financial framework and returns to the shareholders.
186 Its interests in pipeline systems and other facilities are essential elements of the energy system in Germany and Europe. Its participation in Nord Stream 1 and its financial investment in the Nord Stream 2 project are both linked to its participation in the German onshore midstream business and creating a reliable source of transportation for low-cost, low-emission natural gas from Russia for the growing import markets in Europe, thereby also indirectly supporting our production joint ventures in Russia.
Portfolio Overview
Key producing assets
The Group has production assets located in Northern Europe, Russia, North Africa and the Middle East and Latin America. Set out below is a description of its key production assets by geography.
Northern Europe
In Northern Europe, the Group operates in Norway, Germany, the Netherlands, UK and Denmark. Norway and Germany are the key producing hubs in this region. Southern North Sea countries consisting of the Netherlands, UK and Denmark contain a number of smaller fields in different stages of their lifecycle. The Group’s at equity joint venture Wintershall Noordzee is a major gas producer in the region with approximately 20 offshore installations. The focus in the Netherlands, UK and Denmark is on improving production and extending field life through technology and optimised remotely controlled operations from onshore through our technologically advanced remote-control centre in Den Helder in the Netherlands. Key assets for Wintershall Noordzee are the Wingate area, the K 18-G subsea field and Rembrandt/Vermeer. The Group’s midstream business is also located in Northern Europe.
Norway
Norway is Western Europe’s largest oil and gas producing country and the Group has had a presence there since the 1970s. Norway provides a stable fiscal and operating environment with low political risk. The Group’s Norwegian assets are also some of its most technologically advanced and have allowed the Group to develop its expertise in areas such as extreme extended reach drilling, deep water drilling and digitalisation to optimise operations.
In the nine months ended 30 September 2020, Norway accounted for 149 mboe/d or 24 per cent. of the Group’s aggregated production, of which 54 per cent. was gas. The Group participates in a number of key producing platforms, where several nearby tieback fields are also producing or currently being developed. The Group currently participates in over 100 licenses, in 33 of them as the operator. This focus on infrastructure synergies enables significant operational benefits, including the opportunity for sharing of operational expenditure between the host fields and the tiebacks, which leads to lower costs, longer asset life and maximisation of ultimately recoverable reserves. In addition to the key production assets described below, the Group has interests in a number of other production assets which in the nine months ended 30 September 2020 had a production of 14 mboe/d. The Group has also held and continues to hold interests in certain development assets such as Njord, Nova and other projects, many of which are adjacent, connected to, or use common infrastructure with the Group’s key producing assets. Ærfugl and Dvalin came onstream during the fourth quarter of 2020, while Njord and Nova are expected to come onstream in late 2021 and the first half 2022 respectively. See "Key development assets" and "Material agreements".
The Group’s net reserves associated with its Norway assets as of 31 December 2019 are shown in the following table:
(1) Gas Oil Total
(bcf) (MMbbl) (MMboe) Proved Reserves (1P) ...... 1,535 205 479 Proved plus probable Reserves (2P) ...... 2,113 305 682
Source: D&M Report
Notes:
(1) Includes oil, condensate and LPG.
187 Vega
Overview
Vega is a Wintershall Dea operated gas and gas condensate field located in the northern part of the North Sea, 28 kilometres west of the Gjøa field. The water depth in the area is 370 metres. Vega was discovered in 1981. The field consists of three separate deposits: Vega Nord, Vega Sentral and Vega Sør. The field has been developed with three subsea templates with four slots each, tied to the processing facility on the Gjøa field. A total of six production wells have been drilled. Production started in 2010.
The table below sets out key details relating to the field:
Partners: ...... Wintershall Dea (56%, operator); Petoro (30%); Spirit (6%); Idemitsu (4%); Neptune (4%) Offshore/onshore: ...... Offshore Gas/liquids of reserves: ...... 50%; 50% 9M 2020 Production (mboe/d): ...... 29 Start of production: ...... 2010
Field technical background and development
Hydrocarbons at Vega are produced by pressure depletion. The field produces gas condensate from Middle Jurassic shallow marine sandstone in the Brent Group. Additionally, Vega Sør has an oil zone overlying the gas condensate deposit.
Vega’s oil and gas condensate are transported from Gjøa to the Troll Oil II Pipeline for further transport to the Mongstad terminal. Rich gas is exported by pipeline to the Far North Liquids and Associated Gas System (FLAGS) on the UK continental shelf, for further transport to the St. Fergus terminal.
Future plans and outlook
Three infill production wells have been sanctioned and are expected to be drilled between 2021 and 2022 to increase the production and recovery from the field. During Q3 2020, a pilot well was drilled in Vega Sør proving the basis for the infill well campaign. The infill wells will be drilled through the existing subsea templates.
Dvalin
Dvalin is a Group operated gas field in the central part of the Norwegian Sea, north of the Heidrun facility, consisting of two separate structures: Dvalin East and Dvalin West. The water depth is 400 metres. The development concept is a subsea template with four gas producers tied back to the Heidrun platform. The well stream is transported to the Heidrun platform for processing in a new dedicated gas processing module and exported to Nyhamna via a new pipeline from Heidrun connecting to the Polarled pipeline. Drilling of the production wells started in August 2019 and were finalised in August 2020. As planned, first gas flow was achieved in late 2020. However, during the commissioning phase, measurements showed that gas flow contained a level of mercury that exceeded the maximum allowed amount in the system. Various technical solutions are currently being investigated. Until an appropriate remediation solution is implemented, gas flow from the field will be curtailed.
The table below sets out key details relating to the field:
Partners: ...... Wintershall Dea (55%, operator); Petoro (35%); Edison (10%) Offshore/onshore: ...... Offshore Gas/liquids of reserves: ...... 96% Gas
Start of production: ...... 2020
188 Field technical background and development
The field is producing gas from the Ile and Garn formations. The reservoirs are located at a depth of 4,500 metres and have high pressure and high temperature conditions. The field is produced by pressure depletion.
Future plans and outlook
There are several possible tie in options that have been identified in the vicinity of Dvalin, including a prospect to the north of the Dvalin field, which is expected to be matured in the future.
Maria
The Wintershall Dea-operated Maria oil field was discovered in 2010 and is located in the Haltenbanken area of the Norwegian Sea, 25 kilometres east of the Kristin field. The water depth in the area is ~300 metres. The field is a subsea development with two subsea templates comprising five producer wells and two water injector wells. The field is tied to four host installations with the production and main control going to the Kristin platform. Water for injection is supplied from the Heidrun field and gas for well gas lift is supplied from the Åsgard B facility via the Tyrihans D subsea template. Production started in 2017. Maria was the first development project operated by the Group in Norway and was delivered well ahead of schedule and significantly under budget.
The table below sets out key details relating to the field:
Partners: ...... Wintershall Dea (50%, operator); Petoro (30%); Spirit (20%) Offshore/onshore: ...... Offshore Gas/liquids of reserves: ...... 10%; 90% 9M 2020 Production (mboe/d): ...... 6 Start of production: ...... 2017
Field technical background and development
Hydrocarbons at Maria are produced by water injection for pressure support, and the production wells are equipped with gas lift. The reservoir lies at a depth of 3,800 metres. The well stream is routed to the Kristin platform for processing and further export. Stabilised oil is transported from Kristin to Åsgard C and further offloaded to shuttle tankers. The rich gas is sent via the Åsgard Transport System (ÅTS) to the Kårstø terminal, where NGL and condensate is extracted.
Future plans and outlook
Production started nine months earlier than estimated in the plan of development. Production in 2019 was lower than initially planned due to limited pressure support from the water injector wells. Two infill wells were delivered in 2020 as a measure to improve pressure support and recovery. Additional projects have been initiated to increase recovery, and will be progressed depending on the production performance.
Brage
Brage is the Group’s first manned platform in Norway. Located in the northern North Sea, 125 kilometres west of Bergen, it is one of the oldest producing platforms in Norway. First discovered in 1980, the field came into production in 1993. Brage has been developed as a fixed integrated production, drilling and accommodation facility on top of a steel jacket. The main drainage strategy for Brage’s four reservoirs is through water injection, with gas lift utilised in most wells. Brage oil is exported via the Oseberg Transport System to the Sture terminal. The gas is exported via pipeline to Kårstø. Brage is a fully integrated platform with living quarters, auxiliary equipment module, process modules, drilling modules, well and manifold areas. The living quarter capacity is 130 people. Through Brage, the Group gained significant operational and technical competencies in operating a large and complex platform. A significant infill drilling programme is successfully underway which targets several yet untapped areas in the field.
The table below sets out key details relating to the field:
189 Partners: ...... Wintershall Dea (35%), Repsol (34%), DNO North Sea (14%), Vår Energi (12%), Neptune (4%) Offshore/onshore: ...... Offshore Gas/liquids of reserves: ...... 20%/80% 9M 2020 Production (mboe/d): ...... 4 Start of production: ...... 1993
Future plans and outlook
As of the date of this Prospectus, Brage has authority license approval and facilities life-time approval until 2030. The most important measure for continued sustainable operation is to deliver new production through infill well drilling. The drilling campaigns have shown the capability of delivering some of the NCS’ most complex extreme ERD wells. The area also contains some exploration prospectivity in addition to discoveries for potential tie-in to Brage, like the Brasse discovery.
Aasta Hansteen
Aasta Hansteen, the deepest field development on the Norwegian continental shelf, is located in the northern part of the Norwegian Sea, 120 kilometres northwest of the Norne field. The water depth in the area is 1,270 metres. It includes four subsea templates tied-back to a floating platform with a vertical cylindrical hull moored to the seabed (referred to as a "spar platform"). It is the largest spar platform in the world and began production in December 2018. In 2020 the processing capacity has been increased to about 900 Mscf/d, leading to a higher daily gas export from the platform.
The table below sets out key details relating to the field:
Partners: ...... Equinor (51%, operator); Wintershall Dea (24%); OMV (15%); ConocoPhillips (10%) Offshore/onshore: ...... Offshore Gas/liquids of reserves: ...... 100% Gas 9M 2020 Production (mboe/d): ...... 36 Start of production: ...... End-2018
Field technical background and development
Gas at Aasta Hansteen is produced by pressure depletion and natural aquifer drive. The development includes two subsea templates with four slots each and two subsea templates with one slot each. Gas from Aasta Hansteen is transported via the Polarled pipeline to the Nyhamna terminal. Light oil is offloaded to shuttle tankers and transported to the market.
Future plans and outlook
There are plans for developing future tie-ins, including existing and future discoveries such as for example the Asterix field.
Skarv
Overview
Skarv comprises several gas and oil reservoirs: the Skarv, Idun and Ærfugl fields and the Gråsel discovery. The assets are located in the Norwegian Sea, approximately 45 kilometres north of the Heidrun field. Skarv was discovered in 1998 and Idun in 1999 and production started from both fields on 31 December 2012. The water depth in the area ranges from 350 to 450 metres.
The development is comprised of a purpose-built, large floating production storage and offloading unit ("FPSO"), and five subsea templates with 24 well slots as of the date of this Prospectus holding 15 subsea development wells.
190 The FPSO has been upgraded by extending the gas processing capacity to enable further tie-ins and extend the lifetime of the field.
The table below sets out key details relating to the field:
Partners: ...... Equinor (36%); Wintershall Dea (28%); Aker BP (24%, operator); PGNiG (12%) Offshore/onshore: ...... Offshore Gas/liquids of reserves: ...... 70%; 30% 9M 2020 Production (mboe/d): ...... 22 Start of production: ...... 2012
Field technical background and development
Skarv’s production strategy is to initially maximise liquids production by gas injection. In total, there are eleven producers and four injectors. The produced oil is offloaded and exported via dedicated tankers. The gas is exported via the Åsgard Transportation System ("ÅTS") to Kårstø in the southwest of Norway for processing and onward transmission for sales in Europe.
As of the date of this Prospectus, the production plan entails blowing down oil reservoirs, lowering inlet pressure and recovering additional liquids by breaking pre-installed glass plugs in some of the wells. The timing of such blowdown period is not yet determined.
Future plans and outlook
Key future activities include continued production optimisation of the Skarv, Idun and Ærfugl production wells. In the medium-term, further infield wells are being evaluated together with drilling of exploration wells and potential tie-back of 3rd party discoveries in the area.
The development plan for the Ærfugl subsea tie-back (in which the Group has a 28 per cent. equity stake) to Skarv is in progress with as of the date of this Prospectus four wells in production and the remaining two wells coming on stream in 2021. Additionally, the Gråsel project has been approved for development in late 2020.
Ærfugl
Ærfugl is a subsea development that ties back to the Skarv field. The field includes the discoveries Ærfugl and Snadd Outer. The water depth in the area ranges from 350 to 450 metres. The plan for development and operation was approved by the Ministry of Petroleum and Energy in April 2018 and consists of a phased development. Phase 1 develops the southern part of the field and is producing from three wells since November 2020. Phase 2 is focused on the northern part of the field, and started production early from one well in April 2020. The following two wells are expected to come on stream in 2021. The project contributes to a reduction of CO2 emissions of the Skarv field by 30-40% per barrel produced.
The table below sets out key details relating to the field:
Partners: ...... Equinor (36%); Wintershall Dea (28%); Aker BP (24%, operator); PGNiG (12%) Offshore/onshore: ...... Offshore Gas/liquids of reserves: ...... 70%; 30%
Start of production: ...... November 2020
Field technical background and development
The reservoirs contain gas and condensate in sandstone of Cretaceous age in the Lysing Formation located at a depth of 2,800 metres. The field is produced by depletion.
191 Future plans and outlook
Two remaining wells of Ærfugl Phase 2 are expected to come on stream in 2021.
Gjøa
Overview
Gjøa is a gas and oil field discovered in 1989 and located in the North Sea, approximately 50 kilometres north-east of the Troll field. The water depth in the area is 360 metres. Production began in 2010.
The field comprises four subsea templates with 11 production wells tied to a semi-submersible production and processing facility. The Gjøa facility is partly supplied with power from shore, thereby having low emissions and a low CO2 footprint. The Vega fields are tied to the Gjøa facility for processing and export.
The table below sets out key details relating to the field:
Partners: ...... Neptune (30%, operator); Petoro (30%); Wintershall Dea (28%); OKEA (12%) Offshore/onshore: ...... Offshore Gas/liquids of reserves: ...... 60%; 40% 9M 2020 Production (mboe/d): ...... 18 Start of production: ...... 2010
Field technical background and development
Gjøa is drained by pressure depletion with a total of 11 production wells. Segments P1 and P5 are produced by one crestal gas producer each, while the oil zones are drained by seven horizontal oil producers, of which four are dual branched, giving a total of 11 laterals in the reservoir. Gas lift is available if required. As of the date of this Prospectus, the field is in the blow-down phase and started low-pressure production in 2017.
Stabilized oil produced is exported through a pipeline for further transport to Mongstad. Rich gas is exported by pipeline to the Far North Liquids and Associated Gas System (FLAGS) on the UK continental shelf, for further transport to the St. Fergus terminal.
Future plans and outlook
The Gjøa P1 re-development project for the drilling of two new wells was approved in June 2019. As of the date of this Prospectus, it is under execution and is expected to come on-stream in 2021. Future tie-backs to the Gjøa facility are planned for the Nova, where the group holds a 45% share, and the Duva projects both expected to come on stream in 2021/2022.
Edvard Grieg
Overview
Edvard Grieg is a field in the Utsira High area in the central North Sea, 35 kilometres south of the Grane and Balder fields. The water depth in the area is 110 metres. Edvard Grieg was discovered in 2007. The field is developed with a steel jacket stand-alone platform with full process facility and living quarters. It utilises a jack-up rig for drilling and completion of wells. Edvard Grieg also receives and processes the well stream from the Ivar Aasen field where the Group holds a 6.46 % share. Production started in 2015.
The table below sets out key details relating to the field:
192 Partners: ...... Lundin (65%, operator); OMV (20%); Wintershall Dea (15%) Offshore/onshore: ...... Offshore Gas/liquids of reserves: ...... 10%; 90% 9M 2020 Production (mboe/d): ...... 15 Start of production: ...... 2015
Field technical background and development
Hydrocarbons are produced by pressure support from water injection. Edvard Grieg produces undersaturated oil from alluvial, aeolian and shallow marine sandstone and a conglomerate of Late Triassic to Early Cretaceous. Oil is also proven in the underlying basement. The oil is exported by pipeline to the Grane Oil Pipeline, which is connected to the Sture terminal. The gas is exported in a separate pipeline to the Scottish Area Gas Evacuation ("SAGE") system in the UK.
Future plans and outlook
Development plans for the Solveig oil field (in which the Group has a 15% share) which is planned to be tied back to Edvard Grieg have been approved and work onboard Edvard Grieg for the tie-in has started. Further drilling of infill wells in the Edvard Grieg field is planned for 2020/2021.
Snorre Unit
The Snorre field was discovered in 1979 in the Tampen area in the northern part of the North Sea approximately 140 kilometres west of Florø. The water depth in the area is 300-350 metres. The field was developed with the facilities at Snorre A, located in the southern part of the field, and the subsea production facility at Snorre UPA. Snorre A is a floating tension-leg platform for accommodation, drilling and processing. Production from Snorre A started in 1992. In 2001, production started from Snorre B, a semi-submersible integrated drilling, processing and accommodation facility located in the northern part of the field. In 2018, both Snorre A and Snorre B received consent to continue using the facilities through 2040. In 2018, the Snorre Expansion Project was approved, and came into production with the first five wells in December 2020. This subsea development ties back to Snorre A and consists of six subsea templates, each with four wells.
The table below sets out key details relating to the unit:
Partners: ...... Equinor (33%, operator); Petoro (30%); Vår Energi (18%); Idemitsu (10%); Wintershall Dea (9%); Offshore/onshore: ...... Offshore Gas/liquids of reserves: ...... Oil, Associated Gas, NGL 9M 2020 Production (mboe/d): ...... 6 Start of production: ...... 1992
Field technical background and development
In total, 11 successful appraisal wells have been drilled on the structure since discovery. Exploration drilling to the south of Snorre has resulted in a number of oil discoveries in the Tordis and Vigdis areas. The area around Snorre is still believed to have exploration potential with several leads and prospects identified and being matured within both the PL057 and PL089 licenses.
Hydrocarbons at Snorre are produced with pressure support from water injection, gas injection and water alternating gas injection.
The oil from Snorre A is transported with the Vigdis oil to the Gullfaks A platform. The oil will be stored and loaded onto shuttle tankers at the Gullfaks field. All gas, from both Snorre and Vigdis, will be reinjected into the Snorre field. Fully processed oil from Snorre B is transported by pipeline to Statfjord B for storage and loading onto shuttle tankers.
193 Future plans and outlook
Upgrades of the Snorre A platform are planned to accommodate the future projects, including construction of a new riser hang off module and bundling of the process train which have been safely installed and executed in the first half of 2020. In November 2020 the Norwegian Petroleum and Safety Authority (PSA) approved the use of the newly installed equipment. The Snorre Expansion Project started production in December 2020 and will contribute to prolonging the life of the Snorre field. In total 24 wells will be drilled as part of the project, comprising 13 producers, and 11 injectors for pressure support. Drilling will continue during the upcoming two years.
The field will benefit from renewable power delivered from the Hywind Tampen offshore floating windfarm, which is in execution as of the date of this Prospectus. Hywind Tampen start-up is expected in 2022
Germany
The Group is the largest oil producer in Germany, with 100 per cent. working interest in gas and oil fields with the highest annual production levels in the country such as Mittelplate and Völkersen. In the nine months ended 30 September 2020, Germany accounted for 45 mboe/d or 7 per cent. of the Group’s aggregated production, thereof 48 per cent. gas. In addition to the assets described below, the Group also holds a 90% interest in the Emlichheim oil field and other assets of low materiality which contribute 14 mboe/d of production in total. The Group’s strategy is to focus on the material assets in the country, while potentially disposing the less material licenses.
The net reserves associated with the Group’s German assets as of 31 December 2019 are shown in the following table. Gas Oil(1) Total
(bcf) (MMbbl) (MMboe)
Proved Reserves (1P) ...... 333 113 172 Proved plus probable reserves (2P) ...... 454 145 226
Source: D&M Report
Notes:
(1) Includes oil, condensate and LPG.
Mittelplate
Overview
The Mittelplate field, which sits in a UNESCO World Heritage site, is the largest and most productive oil field in Germany, delivering more than 50 per cent. of domestic oil production and remaining, for over 30 years, without environmental incidents. It was discovered in 1980 and is located in the Elbe estuary mouth within the North Sea tidal flats of the Wadden Sea, approximately 8 kilometres offshore. The Group has drilled 42 wells along with 20 sidetracks and four laterals. As of the date of this Prospectus, there are 27 producers, 26 of which are active and 10 injectors, nine of which are active. The wells are operated from an artificial island in the Wadden Sea, as well as an onshore production site at Dieksand.
The table below sets out key details relating to the field:
Partners: ...... Wintershall Dea (100%, operator) Offshore/onshore: ...... Offshore (Mittelplate) / Onshore (Dieksand) Gas/liquids of reserves: ...... 100% Liquids 9M 2020 Production (mboe/d): ...... 20 Start of production: ...... 1987
194 Field technical background and development
The field consists of various sandstone reservoirs (Dogger Beta, Gamma, Delta, Epsilon, Bückeberg) that are being developed from two different locations, the offshore platform Mittelplate A and Dieksand, a nearby onshore facility. A pipeline through the Wadden Sea connects the offshore facility with the onshore processing site.
The oil and associated gas production from Mittelplate and Dieksand is routed through a 10-kilometre pipeline to the onshore processing plant at the Dieksand facilities, where it is treated. The oil is stored in four flat-bottomed tanks and exported via pipeline to Brünsbuttel and Heide refineries. The associated gas is compressed and dehydrated before entering a separate pipeline to Brünsbuttel. Water extracted from the oil is injected back into the reservoir for pressure maintenance.
Electric submersible pumps ("ESP") have been put in place, along with permanent downhole pressure and temperature gauges and ESP production metering. Water flooding as a means of pressure support has been in place since the early production phase of the Dogger Beta sandstone, the largest of the Mittelplate reservoirs in terms of reserves.
The artificial island is continuously improved by maintenance and upgrades, including scour protection and new living quarters.
Future plans and outlook
The Group plans to drill the next extended reach drilling wells, with lengths up to 9,500 meters, south of Mittelplate Island. Specific engineering and the well delivery process have started for the next Beta-South wells. This includes preparations for multi-lateral drilling combined with extended reach drilling field tests for polymer flooding.
Following its commitment to net zero emissions by 2030, the Group changed the supply of electric energy for Mittelplate and Dieksand to certified renewable power from shore, replacing the utilization of produced associated gas in a turbine for power generation.
Völkersen
Overview
Völkersen is an onshore gas field located in Northern Germany, approximately 30 kilometres southeast of Bremen. It is one of the major gas producers in the Lower Saxony Rotliegend Fairway and has been on-stream since 1994. In 2019, it was the most productive gas field in Germany, accounting for approximately 10 per cent. of domestic gas production.
The table below sets out key details relating to the field:
Partners: ...... Wintershall Dea (100%, operator) Offshore/onshore: ...... Onshore Gas/liquids of reserves: ...... 100% Gas 9M 2020 Production (mboe/d): ...... 11 Start of production: ...... 1994
Field technical background and development
The main field development commenced in 1996 and is still ongoing. The development consists of eight drilling sites and 18 production wells, whereof 16 are active. The wellheads are connected to eight decentralized gas processing plants and two central processing plants in Langwedel for water and hydrocarbon dewpointing. Approximately 30 kilometres of gas flowlines, mainly for dry gas, route gas from the wells to the processing plants and to the central compression station in Brammer.
Future plans and outlook
The primary focus for the Völkersen gas field is to optimise production processes and accelerate volumes during the tail end phase with a combination of subsurface and facility projects, e.g. installation of velocity strings and additional
195 local compression capacities and various automation and digitalisation projects with main focus on remote control of assets.
Russia
Russia is the largest supplier of natural gas to the European Union, with approximately one-third of Germany’s fossil fuel demand covered by imports from Russia. Russia is therefore an important core region for the Group, and the Group has had a strong presence in Russia since the early 1990s, with a number of strategic assets producing gas, condensate and oil for domestic needs and exporting it to Europe.
The Group’s core producing assets in Russia operate based on combined (geological survey, exploration and production) subsoil licenses granted by the Russian state authorities, which provide ownership rights to the extracted resources to the holder of the relevant license.
In Russia, the Group participates in three joint ventures with Gazprom group companies and one joint venture company with RITEK (Wolgodeminoil), a subsidiary of Lukoil. The Group’s participation in its Russian joint ventures is established either via direct shareholding in the license holding company (Yuzhno Russkoye and a joint venture with RITEK) or a shareholding in a service company which has service agreements with the license holder (all other joint ventures). The marketing of gas and condensate is conducted through long-term take-or-pay agreements via its own trading companies or marketed directly by the Gazprom group.
In the nine months ended 30 September 2020, Russia accounted for 287 mboe/d or 47 per cent. of the Group’s aggregated production, thereof 80 per cent. gas. In addition to the assets described below, the Group also holds interests in the Achimov 4A and 5A development projects.
The net reserves associated with its Russian assets as of 31 December 2019 are shown in the following table.
(1) Gas Oil Total
(bcf) (MMbbl) (MMboe)
Proved Reserves (1P) ...... 9,390 461 2,137 Proved plus Probable Reserves (2P) ...... 10,461 501 2,369
Source: D&M Report
Notes:
(1) Includes oil, condensate and LPG.
Yuzhno Russkoye
Overview
Yuzhno Russkoye is one of Russia’s largest gas fields, discovered in 1969. It is also the largest producing field in the Group’s portfolio. It is located in the Krasnoselkupsky District of the Yamal-Nenets Autonomous Area, with a concession surface area of 722 square kilometres. Its current reserves are all accumulated in the Cenomanian and Turonian deposits, with some additional 2C resources in the lower layers. The Cenomanian and Turonian formations were commissioned in 2007, with Wintershall being the first German company to produce natural gas in Western Siberia.
The table below sets out key details relating to the field:
Partners: ...... Gazprom (40%); Wintershall Dea (35%)(1); OMV (25%) Offshore/onshore: ...... Onshore Gas/liquids of reserves: ...... 100% Gas 9M 2020 Production (mboe/d): ...... 141 Start of production: ...... 2007
196 Note: (1) Represents the Group’s economic interest, the Group has a 25 per cent. legal interest in the project. For further detail, see "Material agreements".
Field technical background and development
The field wellheads are connected to a centralized gas processing plant with the compressor station and to the Siberian gas pipeline. The joint venture’s license includes three fields: Yuzhno Russkoye, Yarovoye and part of Zapadno-Chaselskoye. The current license expires in 2043 but is expected to be extended. In addition, the Yuzhno Russkoye license comprises sandstone formations in Lower Cretaceous and Jurassic strata which are up to 4,000 meters deep and related to Yuzhno-Russkoye and Yarovoye fields, respectively. The Lower Cretaceous deposits were tested with six appraisal wells during 2015-2017 and further appraisal works will follow under a separate appraisal project. In the Jurassic layers two appraisal wells are committed to be drilled. As of the date of this Prospectus, one of them was drilled and is currently in the process of testing in the Yarovoye field.
The main field development commenced from the Cenomanian formation in 2007 and is ongoing. As of the date of this Prospectus, 139 wells from the Cenomanian formation are in production.
The first pilot well production from the Turonian formation began in 2011. As of the date of this Prospectus, there are a total of 39 production Turonian wells in operation including 3 wells drilled during 2011-2016, 12 start-up complex wells drilled during 2018-2019, 2 former exploration wells that were converted into Turonian producers in 2019 and 22 wells drilled during 2020.
Compared to the deeper Cenomanian layer which has been developed, production from the Turonian formation is more challenging as the reservoirs are subject to low temperatures, which means measures must be taken to prevent hydrates from forming. In addition, there is higher reservoir pressure and lower permeability in the Turonian reservoir rocks.
Future plans and outlook
The Turonian development program between 2020 and 2033 includes over 120 wells, which will extend the production plateau at Yuzhno Russkoye.
Achimov 1A
Overview
Achimov 1A produces natural gas and condensate from the Achimov formation in the Urengoy field. The field, discovered in 1966, is one of the largest onshore gas, condensate and oil reservoirs in the world. It is located in Western Siberia in the Yamal-Nenets Autonomous Area, approximately 3,500 kilometres northeast of Moscow. Achimov 1A has six processing lines.
First production at Achimov 1A of gas and condensate from six pilot wells began in 2008 and has been extensively extended during the full field development, which started in 2011.
The table below sets out key details relating to the field:
Partners: ...... Wintershall Dea (50%); Gazprom (50%) Operator: ...... Achimgaz Offshore/onshore: ...... Onshore Gas/liquids of reserves: ...... 70%; 30% 9M 2020 Production (mboe/d): ...... 143 Start of production: ...... 2008
197 Field technical background and development
The field produces from 108 production wells. Hydrocarbons produced at Achimov 1A are collected and transported to the Achimgaz facility, where gas is further exported through a five-kilometre-long gas pipeline to the Eastern Pipeline Corridor, while condensate is transferred through a 37 kilometres long pipeline to a de-ethanization processing plant in Novy Urengoy. From there the condensate is transported via pipelines to a Stabilisation plant in Surgut / Western Siberia. The current production license of Gazprom Dobycha Urengoi expires in 2038, but is expected to be extended.
Future plans and outlook
After production plateau is reached, the Group targets natural gas production for as long as possible at a peak level, while maximising the condensate production. Compressors will be required at a later stage to maintain planned production.
Middle East and North Africa
The Group is active in Egypt, Algeria, Libya and in the United Arab Emirates. In the nine months ended 30 September 2020, MENA accounted for 51 mboe/d or 8 per cent. of its aggregated production, thereof 77 per cent. gas. A majority of the Group’s assets in North Africa are covered by German federal investment guarantees. See "Insurance" below.
The Group’s key producing assets in North Africa are all located in Egypt and described below. Additionally, the Group holds interests in a number of other smaller producing assets in Algeria (Reggane Nord) and Libya (various onshore and offshore assets). The Group has been active in Egypt since the 1970s.
The net reserves associated with its MENA assets as of 31 December 2019 are shown in the following table.
(1) Gas Oil Total
(bcf) (MMbbl) (MMboe)
Proved Reserves (1P) ...... 713 113 240 Proved plus Probable Reserves (2P) ...... 1,159 167 374
Source: D&M Report
Notes:
(1) Includes oil, condensate and LPG.
West Nile Delta
Overview
West Nile Delta ("WND") is the first IOC-operated production asset in Egypt. It consists of a subsea development of five fields: Taurus, Libra, Giza, Fayoum and Raven. Production from the Taurus and Libra fields began in March 2017, followed by Giza and Fayoum fields in February 2019, and Raven came on-stream in January 2021.
The table below sets out key details relating to the field:
Country: ...... Egypt Partners: ...... BP (82.75%, operator); Wintershall Dea (17.25%) Offshore/onshore: ...... Offshore Gas/liquids of reserves: ...... 85%; 15% 9M 2020 Production (mboe/d): ...... 12 Start of production: ...... 2017
198 Field technical background and development
WND is one of the largest developments in the Mediterranean Sea, located offshore of Egypt, and provides critical gas supply to the domestic market. The project offers unique governance terms and is the first IOC-operated production asset in Egypt, with no traditional joint venture operation or cost recovery structure.
WND consists of a development of five fields in the Mediterranean Sea. The Taurus and Libra fields were fast- tracked through an offshore tie-in to the third-party Burullus subsea and onshore infrastructure. Production in these fields commenced in March 2017. In 2019, the Giza and Fayoum wells started production. Giza and Fayoum, along with Raven, are integrated field developments with common MEG and subsea controls and shared land fall and beach crossings, but there are separate pipelines and additional greenfield facilities for Raven. To ensure higher efficiency, Giza and Fayoum are also using third-party Burullus onshore infrastructure.
Future plans and outlook
The largest of the five fields, Raven, came on-stream in January 2021.
When fully on-stream, combined production at the five fields is expected to be close to 1 billion cubic feet per day, equivalent to about ~20 per cent. of Egypt’s gas production at the end of 2018 as well as boost the lease condensate production to over 30 kboe/day. All the gas and condensate produced supply the domestic Egyptian market.
There is also an ongoing update of seismic mapping at the asset to mature some of the existing potential Miocene segments.
Gulf of Suez
Overview
Since 1983, the Gulf of Suez fields have been successfully developed to produce more than 650 MMboe of crude oil.
The table below sets out key details relating to the field:
Country: ...... Egypt Partners: ...... EGPC (50%); Wintershall Dea (50%) Operator: ...... SUCO (Ras Budran and Zeit Bay) Offshore/onshore: ...... Offshore Gas/liquids of reserves: ...... 40%; 60% 9M 2020 Production (mboe/d): ...... 9 Start of production: ...... 1983
Field technical background and development
There are two offshore crude legacy oil fields in the Gulf of Suez: Ras Budran and Zeit Bay. Both licenses were renewed in March 2019, resulting in licence extension until 2022 with improved commercial terms for the Group and a further renewal option in 2022 for another five years. A rig and rig-less campaign at Ras Budran field in the Gulf of Suez was completed in 2019 and has resulted in increased production from this field.
Future plans and outlook
Further developments are ongoing at Ras Budran to improve production. There is also an ongoing work programme for maintaining asset integrity at the Ras Budran and Zeit Bay facilities. As of the date of this Prospectus, an extension beyond 2022 or exiting the asset is being evaluated internally with a decision expected in 2021.
199 Disouq
Overview
Disouq is a gas field which has been producing since 2013. As of the date of this Prospectus, it has 19 producing wells. It is a 322 square kilometre concession located in the highly prolific Nile Delta province. It comprises two development areas: Disouq Area-1 and NorthWest Khilala.
The table below sets out key details relating to the field:
Country: ...... Egypt Partners: ...... Wintershall Dea (50%); EGAS (50%) Operator: ...... DISOUCO Offshore/onshore: ...... Onshore Gas/liquids of reserves: ...... 90%; 10% 9M 2020 Production (mboe/d): ...... 17 Start of production: ...... 2013
Field technical background and development
The central treatment plant’s maximum processing capacity is 150 thousand standard cubic feet ("mscf") per day, with a capacity upgrade potential of up to 200 mscf per day. The central treatment plant can serve as a hub to the western part of the onshore Delta and service other companies (for example in providing gas processing services). Development activities implemented in the Disouq field were completed, resulting in significantly increased production compared to 2018.
Gas and condensate produced at this field are delivered into Egypt’s national transportation systems.
Future plans and outlook
As of the date of this Prospectus, the Group is developing the liquid rich area North West Sidi Ghazi with envisaged first gas in 2022.
Latin America
The Group is the fifth largest gas producer in Argentina with participation in 11 operated and non-operated licenses. In total, we hold acreage in 20 gas and oil fields in the country, amongst them fields in the large Vaca Muerta play. The Group has been present in Mexico since 2015 and increased its assets in Mexico through the acquisition of Sierra Oil and Gas in 2018. Additionally, the Group considers Brazil, where it already holds several licenses, as a high growth region for exploration and development projects. In the nine months ended 30 September 2020, Latin America accounted for 74 mboe/d or 12 per cent. of the Group’s aggregated production, thereof 88 per cent. gas. In addition to the assets described below, the Group also holds interests in the Aguada Pichana East (27% working interest) and San Roque (Argentina) concession blocks, which, in the nine months ended 30 September 2020, had a production of 18 mboe/d, thereof 97 per cent. gas, and Ogarrio field (50% working interest) in Mexico, which, in the nine months ended 30 September 2020, had a production of about 5 mboe/d, thereof 35 per cent. gas.
The net entitlement reserves associated with its Latin American assets as of 31 December 2019 are shown in the following table.
(1) Gas Oil Total
(bcf) (MMbbl) (MMboe)
Proved Reserves (1P) ...... 756 27 162 Proved plus Probable Reserves (2P) ...... 1,079 35 228
Source: D&M Report
200 Notes:
(1) Includes oil, condensate and LPG.
CMA-1
Overview
CMA-1 began production in 1989. As of the date of this Prospectus, it consists of seven fields (Antares-Ara-Cañadón Alfa, Hidra, Ara South, Kaus, Carina, Aries and Vega-Pleyade) and five offshore platforms. Approximately 16 per cent. of the gas produced in Argentina today comes from CMA-1. Two onshore processing plants (Cañadón Alfa and Rio Cullen) receive and process production from the seven fields. In 2019, the CMA-1 Cañadón Alfa plant expansion project was successfully completed yielding additional reserves and significantly extending the lifetime of the existing facilities.
The table below sets out key details related to the field:
Country: ...... Argentina Partners: ...... Total (37.5%, operator); Wintershall Dea (37.5%); Pan American (25%) Offshore/onshore: ...... Offshore/onshore Gas/liquids of reserves: ...... 90%; 10% 9M 2020 Production (mboe/d): ...... 50 Start of production: ...... 1989
Field technical background and development
All fields are located offshore, except for Antares-Ara-Cañadon Alfa, which produces from both on- and offshore reservoirs. Around 150 wells have been drilled in this field from onshore locations, including five extended reach wells from onshore to offshore.
Gas production from the field is treated in the Cañadón Alfa gas treatment plant ("CAGTP") located in the Cañadón Alfa central processing facilities ("CACPF"). The CAGTP consists of a Turbo Expander Facility (TEF) together with two low temperature separation units. After treatment, the gas is exported through a 24-inch 3 kilometres pipeline to the national gas network pipeline. The TEF unit extracts propane and butane from the produced gas and has been operational since 2000. The LPG production is exported.
Liquids production (oil, condensate and gasoline extracted in the CAGTP) is received and treated in the Rio Cullen treatment facilities and exported via an offshore buoy.
Two offshore platforms have been installed to support production from the Hidra and Ara South fields, and three additional offshore platforms support Aries, Carina and Vega-Pleyade gas fields.
Future plans and outlook
The next development in the greater CMA-1 area is the satellite Fenix Phase I project, with the final investment decision expected in 2021. Following Fenix Phase I, additional incremental development phases in Fenix and Carina are envisaged.
Key development assets
The Group’s portfolio of development assets is integral to its long-term strategy of maintaining a high-quality reserves base. The Group has development assets located in Northern Europe, Russia, the Middle East and Latin America. Set out below is a description of its key development assets.
201 Northern Europe
Norway
The Group considers its key development assets in Norway to be Njord and Nova.
Njord
Njord Future is a major re-development project which aims to add an additional 20 years of production from the field. The field consists of Njord A, a floating integrated steel platform with drilling, processing facilities and a living quarter. Njord B is a floating storage vessel (FSU). Njord Future has been shut in since 2016 for extensive onshore upgrades. Once back in production Njord Future will be the host for one existing third party field (Hyme, Group share of 27.5%) and two new third party tie-back fields (Bauge and Fenja, Group share of 27.5% and 0% respectively). The Njord facilities are expected to be re-commissioned at the end of 2021.
The table below sets out key details relating to the field:
Partners: ...... Wintershall Dea (50%); Equinor (27.5%, operator); Neptune (22.5%) Start of production: ...... End 2021 Development concept: ...... Floating steel platform and storage vessel
Nova
Nova is a Group-operated field in the northern part of the North Sea, 17 kilometres southwest of the Gjøa field. The water depth in the area is 370 meters. The development consists of two four-slot subsea templates tied back to the Gjøa platform, one for oil production and one for water injection, each with three wells. Hydrocarbons from the field will be produced by pressure support from water injection and with gas lift, both supplied from Gjøa. The well stream will be routed by pipeline to the Gjøa platform for processing and export. The oil will be transported further through the Troll Oil II Pipeline to Mongstad, and the gas will be exported via the FLAGS pipeline to St. Fergus in the UK. The plan for development and operation was approved in September 2018. In 2020 we achieved several major milestones for Nova on time. We safely installed the subsea manifolds, the 740 tonne heavy processing module and the risers. Drilling of the Nova wells started in October 2020 with an expected duration of more than a year. Field production start is planned in 2022. The main part of the drilling will take place in 2021 and production is scheduled to begin in early 2022.
The table below sets out key details relating to the field:
Partners: ...... Wintershall Dea (45%, operator); Spirit Energy (20%); Edison (15%); Sval Energi (10%); One-Dyas (10%) Start of production: ...... H1 2022 Development concept: ...... Subsea tie-back to Gjøa
Hywind Tampen
Between the two concessions, Snorre and Gullfaks, an offshore windfarm is planned to be developed to directly supply approximately 35 per cent. of the annual power demand to the five platforms at the Gullfaks and Snorre fields. The wind farm consists of 11 floating turbines with a combined capacity of up to 88 megawatts. This project will aid in the reduction of CO2 emissions from the offshore power generation.
The table below sets out key details relating to the development:
202 Partners: ...... Gullfaks: Equinor (51%, operator); Petoro (30%); OMV (19%) Snorre: Equinor (33%, operator); Petoro (30%); Vår Energi (18%); Idemitsu (10%); Wintershall Dea (9%); Start up: ...... 2021-2022 Development concept: ...... Floating wind farm
Russia
The Group considers its key development asset in Russia to be Achimov 4A & 5A.
Achimov 4A & 5A
Achimov 4A & 5A is an onshore gas and condensate production project within the Achimov formation in the Urengoyskoye field. The first phase of the project began in 2018, which includes the drilling of 40 production wells. In connection with the construction of processing facilities and related infrastructure at Achimov 4A & 5A, the Group contributed to the joint venture approximately €205 million by June 2020 in form of equity and short-term loan (to be replaced by equity). The second phase consists of the drilling of an additional 108 production wells. Achimov 4A & 5A is planned to be ready for production in the first quarter of 2021. Gas and condensate will be separated via a separate gas treatment plant ("UKPG") at each of Achimov 4A & 5A. The gas will then be exported via separate pipelines from each of the UKPGs to the Eastern Pipeline Corridor. The condensate will be transferred by a pipeline to a processing plant in Novy Urengoy for stabilisation.
The table below sets out key details relating to the field:
Partners: ...... Gazprom (50.01%); Wintershall Dea (25.01%); Gazprom Finance B.V. (24.98%) Operator: ...... Achim Development Start of production: ...... 2021 Development concept: ...... Onshore gas and condensate production via pipelines
Middle East
The Group considers its key development asset in the Middle East to be the Ghasha field.
Ghasha
The Ghasha Concession is located in the Arabian Gulf, offshore Abu Dhabi. Nine fields with gas, gas-condensate and oil reservoirs will be developed as part of three major projects (Dalma Gas, Ghasha-East &-Hail and SARB development) and a number of smaller future projects. The Dalma Gas project encompasses the development of three fields with construction of offshore and onshore facilities additionally to the use of existing onshore gas processing facilities. After the EPCs had been awarded in February 2020 and commenced in March 2020, the contracts were terminated in Mid-April 2020 on the grounds of force majeure due to the Corona Crisis. The re-tendering process for two EPC packages is ongoing and award is expected in the first half of 2021. Gas production is expected to begin in 2024. The Ghasha-East & Hail project comprises the development of two ultra-sour gas fields. Within the scope of this project, a total of ten artificial islands will be built to accommodate nine drill centres tied back to an offshore gas liquids separation plant. Over 30% of the island’s construction has been completed to date. The separated liquid and gas products will then be routed to new onshore gas processing facilities for further treatment. The tendering process for 4 EPC packages is ongoing. As of the date of this Prospectus, cost optimisation measures are being implemented. EPC award is expected for the first half of 2021. Production start is anticipated in 2026. The SARB gas field will be tied-back into existing production facilities from where the gas will be routed to existing onshore gas processing facilities. Production is expected to begin by the end of 2026.
The table below sets out key details relating to the field:
203 Country: ...... United Arab Emirates Partners: ...... ADNOC (55%, operator); Eni (25%); Wintershall Dea (10%); OMV (5%); Lukoil (5%) Start of production: ...... 2024 Development concept: ...... Offshore (sour) gas, condensate and oil production from (artificial) islands, offshore liquids and gas separation and onshore gas processing
Key exploration projects
The Group’s framework seeks to replenish 15-20 per cent. of produced reserves over a five-year rolling average through exploration. The Group plans to achieve its framework through active portfolio management, including the participation in licencing rounds, swaps and/or acquisition of exploration acreage, as well as the use of new data and digital technologies.
In particular, the Group focuses on opportunities within a balanced exploration portfolio with competitive cost structures and strong value focus. The Group’s exploration activities will be in support of future emission targets. Its strategy envisages an annual pre-tax budget of approximately €250 million for exploration and appraisal activities and is targeting total finding costs of €5/boe on a five-year rolling average. Post-tax, the Group’s exploration and appraisal budget is significantly lower, for example due to the tax rebate mechanisms in Norway. For 2020, in response to the market volatility, the Group has reduced its exploration and appraisal budget significantly and expects to have incurred €175 million of exploration expenditures for the full year.
The Group’s key exploration projects focus on its most attractive regions for growth, including Norway, Mexico, Brazil and Egypt.
As of the date of this Prospectus, the Group holds 40 exploration licenses in Norway (excluding producing assets and area extensions), of which 14 are operated by Wintershall Dea. During 2019 and 2020, the Group drilled 15 exploration and appraisal wells and participated in two licensing rounds. In 2019 and 2020, the Group has participated in 7 potential commercial discoveries (commercial success rate of 47%).
In Mexico, the Group has 10 exploration/appraisal blocks, three of which are operated. The Group plans to undertake further exploration activities in existing blocks. It has participated in eight wells in 2019 and 2020, comprising six exploration wells and two successful appraisal wells on the Zama discovery. In 2019 and 2020, the Group has participated in three potential commercial discoveries (commercial success rate of up to 50 %).
In Brazil, the Group has nine exploration licenses in the Ceará (operated), Potiguar (operated), Campos and Santos basins. The Group has ongoing plans to acquire and interpret 3D seismic data and participate in upcoming bidding rounds and teamed up with Murphy in Potiguar and continues to look for partners to join its operated licenses and build a diversified portfolio in the country.
As of the date of this Prospectus, the Group’s current exploration activities in Egypt focus on exploration potential within its Nile Delta concessions. As of the date of this Prospectus and still subject to government approval, two companies farmed into Nile Delta Block 10 , East Damanhour, adjacent to the existing infrastructure in Disouq, with Wintershall Dea staying the operator of Block 10.
In addition, the Group also conducts limited exploration activities in countries with established production and has a range of operated and non-operated exploration licenses such as in Germany, Denmark, the Netherlands, Russia and Argentina.
For 2021, the Group plans to conduct follow up exploration drilling in Norway and Mexico as well as appraisal drilling on the 2020 discoveries in Norway and Mexico and additionally exploration drilling in Egypt close to the Group’s existing infrastructure.
204 Other assets
Rehden
In 2015, based on a swap agreement, Gazprom acquired the Group’s remaining shares in their former joint venture Wingas, including the Rehden underground gas storage facility. During the operation of the storage facility, gas migration into the lower layers was identified. In the course of the discussions with the Group, Gazprom has raised concerns about the migration as well as a reduced performance of the storage facility and conformity with certain provisions contained the agreements on which the transfer of the storage facility was based in 2015. The Group and Gazprom are continuing to discuss potential avenues for a joint resolution of these issues.
In connection with the investigations into the migration issues, reports made by the Group for the relevant mining authority ("LBEG") and an independent expert ordered jointly by the Group and Gazprom showed that the gas storage facility is in safe condition.
Libya
The Group owns 51 per cent. of Wintershall Aktiengesellschaft ("WIAG"), which in December 2019 entered into Exploration and Production Sharing Agreements (EPSA IV) with the Libyan National Oil Corporation ("NOC") for two onshore contract areas in the Eastern Sirte Basin, Libya, replacing the petroleum concessions it had previously held for these areas. WIAG has no DPLTA or parent company guarantee in place with the Group.
WIAG has been active in Libya since 1958, marking its first discovery in 1967 and first oil in 1976. Since 2011, the political and security environment in Libya has been highly volatile and marked by periods of conflict between armed groups with varied political, economic and ideological motivations. Moreover, the oil sector and its infrastructure have suffered tremendously from the effects of this situation. WIAG’s ability to export its hydrocarbons have been sporadically disrupted and periodically suspended, including for the full year 2020, which has severely compromised its activities. In addition, protracted shutdowns and the associated interruptions have adversely impacted the oil industry infrastructure required by the assets (including corrosion and integrity issues). Another significant complication is the major backlog of inspection and repair works that are urgently needed due to highly insufficient public budget allocations to NOC as well as the continued shortage in Libya of qualified maintenance service providers and other key oilfield service providers, which has also led to a postponement of much needed investment projects.
Under the so called "Interim Operating Agreement", in place between WIAG and NOC temporarily prior to the signing of the EPSAs, WIAG remains entitled to compensation of the yet non-refunded balance of pre-financed operating expenditures. In addition, WIAG has been required to pre-finance operating expenditures also under the EPSA while having been transitionally operating the contract areas until 20 October 2020 when the operatorship was ultimately handed over to the Libyan branch of a newly established joint operating company, called Sarir Oil Operations B.V. ("SOO"). As per the EPSA IV requirements, NOC holds 51 per cent of SOO and WIAG the remainder of 49 per cent. Since the EPSAs took retroactive economic effect from 1 January 2008, the period between the effective date and the signature date will be settled by a compensation from one party to the other. As part of the agreement, the respective period as well as the final compensation amount is audited by an external auditor.
In 2019, the NOC’s Companies Accounting Department ("CAD") commenced a review of WIAG’s accounts during 2004-2007, which had previously been audited by the Libyan tax authorities ("Public Control Board" or "Dewan"), with a focus on operating expenditures deducted by the company. WIAG has received informal indications that as a preliminary outcome of CAD’s review of 2006 and 2007, CAD is taking the view that a substantial number of tax- deducted expenses incurred in connection with WIAG’s onshore production operations in Libya are considered either impermissible, too high or require further assessment. The review of 2004-2005 is still ongoing. For the period from 2008 to date, neither Dewan nor CAD audits have taken place. Limited provisions have been made for potential additional tax claims.
Moreover, WIAG is in dispute with the export terminal and pipelines operator Zueitina Oil Company ("ZOC") over retroactive tariff adjustments charged in relation to transportation of crude oil production from the during 2012, 2013 and 2014 and increased charges in relation to the transportation of production during 2015, 2016 and 2017. The basis of this dispute is an increase of up to 500 per cent. in pipeline tariff fees that WIAG believes is unwarranted and
205 likely partly time-barred. This dispute remains unresolved and WIAG has not made payments under the disputed invoices but has made provisions for the amounts in dispute. ZOC has not yet taken any legal action and ZOC continues to provide transportation services. Additionally, WIAG in 2020 received from the pipeline and terminal network operator Harouge Oil Operations ("HOO") substantially revised additional pipeline and terminal tariffs for 2013-2016. With the current lack of facts substantiating the additional tariff claims by HOO and further based on the fact that WIAG has good arguments that these are time-barred, as of the date of this Prospectus, WIAG does not see any argument nor facts to remeasure the existing provision previously recorded to account for minor increases in tariffs.
In light of the issues described above and the ongoing high volatility and instability of the political and security situation in Libya, as well as the increasingly unmanageable operational environment, the future operations and financial position of WIAG in Libya is considered unpredictable and highly uncertain. Consequently, as of the date of this Prospectus, the Group does not include any reserves, production or cash flow from these assets in its valuation or business planning.
Midstream business
Overview
The Group benefits from a strong presence in the non-cyclical European gas midstream business, which complements its upstream portfolio, including its production and developments assets in Russia. According to Eurostat, 38.3 per cent. of the natural gas supply to the EU-countries in 2019 came from Russia. There is significant demand in Europe for the import of natural gas, and domestic European production, is unable to meet this demand. The Group has therefore seen a strong demand for infrastructure to transport gas to Europe, including Russian gas.
The Group’s interest in offshore and onshore pipeline systems provide capacity to transport natural gas produced in Russia (including by its Russian joint venture companies) and Europe to European consumer markets. The Group has a significant share in offshore and onshore transmission systems, including a shareholding in Nord Stream 1, an indirect interest in the GASCADE pipeline system (including EUGAL) and indirect fractional ownership in operated pipelines OPAL and NEL. As of the date of this Prospectus, the Group’s midstream business comprises interest in approximately 4,140 km of onshore gas pipelines. The Group’s midstream business also includes the partly financing of the Nord Stream 2 project. As of year-end 2020, the Group had contributed €730 million to the financing of the Nord Stream 2 project together with other international gas and oil companies, each providing loans of equal size. The gas midstream business provides the Group with an important source of price and volume independent, predictable and stable earnings.
206 In the period from 1 January to 31 December 2019 the midstream business contributed €275 million to the Group's EBITDA (1 January to 31 December 2018: €282 million) and €164 million to the Group's Net Income (2018: €161 million) (like-for-like presentation, WIGA group (as defined below) consolidated at equity).
The table below sets forth certain information relating to the Group’s direct and indirect interests in the principal midstream assets:
Total The Group’s Capacity Length In operation Pipeline share (%) (bcm p.a.) (kilometres) since GASCADE pipeline network (without EUGAL) 50.0 N/A 2,400 1992 EUGAL 25.3 55 480 1st string: 2020/ (1st string already part of the GASCADE network) 2nd string ...... 330 km to follow 2021 OPAL ...... 40.0 36 473 2011 NEL ...... 25.5 20 441 2012/2013 Nord Stream 1 ...... 15.5 55 1,220 2011/2012
Key midstream assets
Onshore
The onshore midstream activities of the Group in Germany are bundled under the holding company WIGA Transport Beteiligungs-GmbH & Co. KG ("WIGA"), which is a joint venture of Wintershall Dea and Gazprom Germania GmbH, which hold equity interests of 50.02 per cent. and 49.98 per cent., respectively.
GASCADE pipeline network
The high pressure GASCADE pipeline system is connected with several European countries directly and guarantees secure energy supplies in Germany and elsewhere in Northern and Western Europe. GASCADE system of natural gas pipelines was mainly built in the 1990s and is approximately 2,900 kilometres long (including the first string of EUGAL). The most important pipelines are the following:
• MIDAL (Mitte-Deutschland-Anbindungsleitung), central German Pipeline Link, with a length of 679 kilometres, which connects the North Sea with southern Germany. It runs from Bunde to Ludwigshafen.
• WEDAL (Westdeutschland-Anbindungsleitung), western German gas link, which connects the MIDAL pipeline with the Belgian natural gas grid.
• STEGAL (Sachsen-Thüringen-Erdgas-Anbindungsleitung), Saxony-Thuringia Natural Gas Pipeline, a 314 kilometres long pipeline, fully commissioned in 1993, which connects Olbernhau on the Czech border with MIDAL near Reckrod in the state of Hesse.
• JAGAL (Jamal-Gas-Anbindungsleitung), Yamal Gas Pipeline Link, which measures 338 kilometres and provides a link to the Yamal-Europe pipeline that connects gas fields in Western, Russia, with Germany through the Belarus-Polish corridor.
• RHG (Rehden-Hamburg-Gasleitung), Rehden-Hamburg Gas Pipeline, a 132 kilometres long pipeline which transports natural gas to the greater Hamburg region.
• EUGAL (European Gas Pipeline Link) extends over a length of some 480 kilometres, running from the Baltic Sea through Mecklenburg-Western Pomerania and Brandenburg to southern Saxony and from there over the border to the Czech Republic.
In total, the net regulated asset base ("Net RAB") of the regulated gas transportation company GASCADE amounted to approximately €2,400 million as of 31 December 2020.
207 For the third regulatory period for 2018-2022 (defined below), the German regulatory equity returns for new assets at GASCADE and NGT are 6.91 per cent. and 5.12 per cent. for old assets. GASCADE has been fully regulated and certified as an Independent Transmission Operator ("ITO") in accordance with section 4a(1) of the EnWG (defined below) since 2013. As of the date of this Prospectus, GASCADE has an efficiency level of 100 per cent., which has been confirmed by the German Federal Network Agency (Bundesnetzagentur – "FNA"). NGT has been fully regulated and certified as an ITO and has an efficiency level of 100 per cent., which has been confirmed by the FNA.
EUGAL
The new European Gas Pipeline Link ("EUGAL") is a joint project in fractional ownership between GASCADE (50.5 per cent.), Fluxys (16.5 per cent.), Gasunie (16.5 per cent.) and ONTRAS (16.5 per cent.), with GASCADE responsible for the construction and operation of the pipeline. EUGAL will act as an onshore connection pipeline of Nord Steam 2, with transport capacity of 55 bcm per year, and will run parallel to OPAL from Greifswald to Deutschneudorf on the German-Czech border.
EUGAL comprises two parallel strings and, for string 1, has a length of approximately 480 kilometres, whereby string 2 has a length of 330 kilometres. Further facilities, including a landfall station in Lubmin near Greifswald, a compressor station in Radeland and gas regulating, and metering stations are also part of the EUGAL system. By connecting to JAGAL, NEL and third-party pipeline NETRA, EUGAL is able to transport natural gas in all directions. This strengthens the German and European networks, adds flexibility to gas transport and increases the security of supply within Europe.
The first string was put in operation on 1 January 2020. The full capacities of the second string will be reached on 1 April 2021. The EUGAL project has been included in the final plan for the development of Germany’s network in 2018-2028 and was classified as an approved investment measure by the FNA in January 2019.
NEL
The North European Gas Pipeline (NEL), which is operated by NGT, connects Nord Stream 1 to the pipeline systems in Northern and Western Europe. The NEL pipeline, measuring 441 kilometres, was commissioned in October 2012 and is owned through the fractional ownership by NGT (51 per cent. ownership share), a German subsidiary of the Dutch Gasunie (25.13 per cent.) and a German subsidiary of the Belgian Fluxys (23.87 per cent.) that each market their proportional capacities independently. The entry capacities of NGT are fully booked on a long-term basis.
The Net RAB of NGT amounted to approximately €390 million as of 31 December 2020.
After the commissioning of Nord Stream 2 NEL will also be able to transport part of Nord Stream 2 volumes of natural gas towards Western Europe.
OPAL
The Baltic Sea Pipeline Link (Ostsee-Pipeline-Anbindungsleitung OPAL), along with NEL, is a connecting pipeline to Nord Stream 1 and transports gas along a stretch of 472 kilometres to the border with the Czech Republic. The pipeline has capacity of 36 bcm of natural gas per year. It came on stream in 2011. The Group indirectly holds a 40 per cent. fractional ownership share in OPAL via WIGA group, which holds 80 per cent., while Lubmin-Brandov Gastransport GmbH, Essen (a Uniper Group company), holds the remaining co-ownership interest of 20 per cent. and markets the respective capacity share of 20 per cent. OPAL is, to a large extent, exempted from applying the strict regulatory requirements until 2031. The non-regulated OPAL transportation capacities are contracted on a long- term basis.
OGT had a theoretical Net RAB (comprising its fully regulated, partially regulated and unregulated assets) of approximately €670 million as of 31 December 2020.
For information regarding the ongoing legal proceedings concerning OPAL please refer to the sub-section "Legal and other proceedings – OPAL" below.
208 Offshore
Nord Stream 1
Nord Stream 1 is an offshore pipeline system which connects Russia and Germany, with a capacity of approximately 55 bcm per year via two 1,224 kilometres subsea pipelines starting near Vyborg in Leningrad region. Wintershall Dea has a share of 15.5 per cent. in Nord Stream 1, together with other major companies, Gazprom International Projects, a 100% subsidiary of OAO Gazprom (51 per cent.), the E.ON affiliate PEG Infrastruktur AG (15.5 per cent.), N.V. Nederlandse Gasunie (9 per cent.) and ENGIE (9 per cent.).
Since commissioning in November 2011 (line 1) and October 2012 (line 2), Nord Stream 1 has transported over 370 bcm of natural gas. Utilization has increased steadily since 2011 to full capacity use since 2018. Onshore, the gas is received by connecting pipelines OPAL and NEL for further transportation onto the European grid.
Nord Stream 2
The EU’s domestic gas production is in rapid decline. To offset the shortfall and secure supplies, the Nord Stream 2 pipeline system is being built, which will travel through the Baltic Sea, starting from the Leningrad region coast of Russia near Ust-Luga and reaching landfall near Greifswald in Germany.
Nord Stream 2 will, to a large extent, technically be similar to Nord Stream 1 and consist of two pipeline strings measuring approximately 1,230 kilometres, connecting Russia and Germany with a total capacity of approximately 55 bcm per year. A total of 2,300 kilometres (or 94%) of the Nord Stream 2 Pipeline had been laid by 20 December 2019, when the offshore pipelay contractor was forced to suspend the pipelay in anticipation of the enactment of an U.S. sanctions bill. Exterritorial sanctions have proven to be a significant threat for the Nord Stream 2 project. The project company is investigating options for completing the pipelay. The pipelay-activities were restarted in German waters in December 2020 and will be continued in Danish waters in 2021. Nord Stream 2 is being developed and constructed by Nord Stream 2 AG, which is a wholly-owned subsidiary of Gazprom.
Wintershall Dea takes part in the project as a financial investor and has committed, together with other European partners (ENGIE, OMV, Shell and Uniper), to provide long-term financing. Each company took the obligation to fund up to €950 million, split into mezzanine debt of up to €285 million and a bridge respectively funding gap loan of up to €665 million. The Group’s financing is without equity risk or volume risk exposure. As of year-end 2020, Wintershall Dea had paid out €730 million for the project. Further disbursements are not planned as of the date of this Prospectus. The funding gap portion of the financing is envisaged to be refinanced externally.
For information regarding the ongoing legal proceedings in Poland concerning the Nord Stream 2 financing agreements please refer to the sub-section "Legal and other proceedings – PCA" below.
Regulation
As of the date of this Prospectus, the midstream market in the EU is regulated under the Third Energy Package of the EU of 2009 and, for Germany, by the Energy Industry Act ("EnWG") which transposes the Third Energy Package into national law and a number of other legislative acts. These regulations have a significant impact on the earnings of a TSO such as the Group and consequently on the value of its midstream business. The German TSOs are subject to incentive-based regulation (the "incentive regulation") to the extent not exempted which is the case for the OPAL pipeline. The main aspects of the incentive regulation in Germany are: the applicable regulatory period, determining the base level of costs, efficiency benchmarking, setting the revenue caps and returns on investments, as described below.
The German energy regulator, the FNA, determines in advance the maximum revenue the TSO may receive on a year to year basis during a five-year period (the "regulatory period"). The audited costs for the operation of the network (determined on the basis of the regulated asset base ("RAB") set by the FNA prior to the beginning of each regulatory period), as well as the efficiency benchmarking of the network operators, provide the basis for determining the allowed revenues. For the regulatory period, the TSO’s costs and revenues are decoupled. By setting a fixed amount of revenue, the TSO has an incentive to increase its potential profits or reduce possible losses.
209 The FNA calculates and determines a rate of return on capital for each regulatory period which reflect the risks involved and the conditions in the financial markets. This rate of return, however, may be achieved by the TSO if its efficiency level of 100 per cent. was confirmed by the FNA (where the actual costs of the operator, at a maximum, correspond to the set revenue cap). The incentive regulation aims to incentivise the TSOs to operate as efficiently as possible and to ensure cost efficiency. Cost reductions will be passed on to consumers. The differences between the revenue generated and revenue cap are entered onto the regulatory account and are offset in the following years after realization. The incentive regulation also provides tools that allow network operators to get an adjusted revenue cap in order to cover the costs of large expansion investments during the regulatory period.
For the third regulatory period for 2018-2022, the German regulatory equity returns for new assets at GASCADE and NGT are 6.91 per cent and 5.12 per cent for old assets. Due to recent regulatory developments, lower equity rates are anticipated for the fourth regulatory period.
With changes to the EU Gas Directive being made in 2019 and its implementation into German EnWG, regulations of the Third Energy Package are applied also to sections of offshore gas pipelines in the territorial waters of EU member states, where first interconnection points with the EU gas pipeline network are located.
On 20 May 2020, FNA granted to Nord Stream AG a derogation from the application of the primary provisions of the EU Gas Directive. The derogation applies to the pipeline section located on German territory (including German territorial waters) and is initially valid for 20 years, retroactively from the amended EnWG’s entry into force on 12 December 2019.
On 15 May 2020, FNA announced its decision not to grant Nord Stream 2 AG a derogation from EU regulation, since its physical construction has not yet been completed. The project company appealed against this decision to Higher Regional Court of Düsseldorf. Nord Stream 2 AG also brought action for annulment of the amended Gas Directive before EU General Court and started arbitration under the Energy Charter Treaty against the European Union. The EU General Court dismissed the claim, but Nord Stream 2 AG appealed against the decision.
Material agreements
Financing Arrangements
Syndicated Credit Facilities Agreement
On 1 March 2019, the Company entered into a syndicated credit facilities agreement comprising of four facilities, a multicurrency bridge term loan ("Facility A"), two term loans ("Facility B" and "Facility C") and a revolving credit facility (the "Revolving Credit Facility") from a consortium of banks.
Facility A
On 26 September 2019, Facility A was repaid in total from the Existing Notes proceeds mentioned below.
Facility B and Facility C
Facility B comprises a three-year term loan of $1,050 million and Facility C comprises a five-year term loan of $1,050 million. Each can be drawn in Euros and U.S. dollars. As at the date of this Prospectus, both Facility B and Facility C are fully drawn and each of them with a tranche of rounded €584 million and a tranche of $400 million.
Revolving Credit Facility
The Revolving Credit Facility comprises a five-year €900 million loan, with an option to deliver an extension request to the lenders under the Syndicated Facilities Agreement to extend the original termination date for a period of up to two years. A first one-year extension was already requested on 20 March 2020. On 24 April 2020 the Company received the confirmation that 22 out of 23 existing Revolving Credit Facility lenders declared their consent to the one-year extension with a total extension amount of rounded €872 million.
The Revolving Credit Facility back-ups the Group’s liquidity needs and is intended to remain undrawn over its tenor. As at the date of this Prospectus, the Revolving Credit Facility remains undrawn.
210 Existing Notes
On 25 September 2019, the Issuer issued bonds in four tranches, comprised of €1,000,000,000 0.452 per cent. Senior unsecured notes due 2023, €1,000,000,000 0.840 per cent. senior unsecured notes due 2025, €1,000,000,000 1.332 per cent. senior unsecured notes due 2028 and €1,000,000,000 1.823 per cent. senior unsecured notes due 2031 (together, the "Existing Notes"). The Existing Notes are unconditionally and irrevocably guaranteed by the Company. The Existing Notes are listed on the Euro MTF market of the Luxembourg Stock Exchange.
Cash Management Agreements
For optimal liquidity management, the Group has set up cash management agreements with most of its consolidated and some of its at-equity consolidated entities. Deposits into group cash pooling of at-equity consolidated entities are considered as payables towards affiliated entities. As at 30 September 2020, the amount pooled into the Group cash pooling amounted to €432 million of financial liabilities and €19 million financial receivables.
Exceptions to the standard cash management solutions are mainly in Russia where, due to corporate governance limitations, individual solutions are used. Cash is distributed to the Company from the operating companies (or its shareholders’ trading companies) in Russia via repayment of shareholder loans and/or periodic dividend distributions.
Working Capital Loan Agreements
In April 2020, the Company has entered into unsecured committed working capital loan agreements with five banks with a duration of about 364 days, primarily to cover short term needs of up to €450 million. As of the date of this Prospectus the working capital loan agreements remain undrawn.
Agreements Governing Petroleum Activities
Norway
The Group’s licenses in Norway operate under a standard Joint Operating Agreement (the "JOA") which governs the relationship between the licensees and is the basis for the day-to-day management of the activities, allocation of costs, decision making processes and the operators’ duties. The JOA covers all phases of the license activities from exploration through development and production and cessation of the activities. The joint venture participants are primarily liable to each other on a pro rata basis in accordance with their participating interests, and in the case of default by a licensee, are jointly, and severally liable for all costs, expenses and obligations arising out of the venture’s activities. A licensee may in certain instances withdraw from a joint venture. The produced hydrocarbons are allocated in kind to the licensees in accordance with their shares in the license and sold individually by each licensee.
If a hydrocarbon deposit extends over more than one production license, the licensees must enter into a unitization agreement. The unitization agreements are typically based on terms similar to the JOA whilst the main commercial provisions, such as the scope of the unit, the tract participation and unit interest split and voting rules, are negotiated. Unit agreements create a new joint venture and a new management committee, consisting of all licensees in the respective production licenses over which the deposit extends. The hydrocarbon produced is allocated to the unit partners in accordance with their unit interest share. Pursuant to some unit agreements, tract participation and unit interest may be re-determined from time to time on the basis of the underlying licenses’ contribution to reserves, production or other agreed criteria and procedures. The economic interest in developments subject to unit agreements, may therefore vary over time.
Use of existing production facilities and oil transportation pipelines are based on negotiated agreements. A regulatory framework is in place in Norway to ensure the right to use available capacity and reasonable tariffs and cost coverage. If the owner plans to cease operation of the existing infrastructure, the tie-in agreements may, subject to certain terms, be terminated by the owner. If no agreement on third-party access is reached through negotiations by the owner and user groups, the Ministry of Petroleum and Energy can impose a solution on the parties, including the commercial terms for third-party use, such as tariffs.
Germany
The Group’s German licenses are mainly covered by consortium agreements which govern the relationship between the licensees and form the basis for day-to-day management of the activities, allocation of costs, decision making
211 processes, the operators’ duties etc. The produced hydrocarbons are allocated to the licensees in accordance with their shares in the license pursuant to the consortium agreement. Generally, all partners decide unanimously about the working programme, particularly regarding the execution and financing of any new exploration and/or drilling. The agreements generally terminate upon expiration of the relevant concession or the final exploitation of the resources in that area.
If a hydrocarbon deposit extends over more than one production license, the affected licensees are required to enter into a pool agreement. The Group’s pool agreements are typically based on standard terms and the main commercial provisions, such as the scope of the unit, the tract participation and unit interest split and voting rules are negotiated. The standard terms are based on the standardised consortium agreement terms. Pool agreements create a new joint venture and a new management committee, consisting of all licensees in the respective production licenses over which the deposit extends. A pool agreement governs, among other things, (i) the formation of a unit; (ii) the tract participation of each license, and how this may be re-determined from time to time, (iii) the operator’s rights, duties and obligations and (iv) the work programme and the relationship between the licensees for the co-ordinated activities, including the establishment of a management committee. The hydrocarbons produced from the field(s) covered by a pool agreement are allocated to the unit partners in accordance with their unit interest share, as applicable.
Certain of its assets are also subject to an agreement on operational management, which stipulates that the parties thereto participate in any expenditures and exploitation relating to the production facilities in the same proportion as stipulated by the pool agreement.
Russia
The Group’s Russian production assets are governed by shareholders’ agreements, which form the basis for day-to- day management of the assets. Generally, shareholders of the Group’s Russian production assets (each being a joint venture) decide unanimously on material adjustments to the plans on subsoil development, the approval of the Annual Work Programme and Budget and material financing and major contracts.
At Achimov 1A and Achimov 4A and 5A, the joint ventures operate under service agreements. The joint ventures in this case do not directly hold the licenses, but own the project infrastructure. All works for the project are done pursuant to a service agreement with the license-holding company, which is a subsidiary of Gazprom. All extracted resources are owned by a Gazprom subsidiary (as the license holder) and the joint ventures are paid under the service agreement and in respect of Achimov 4A and 5A the joint venture purchases the extracted resources from a Gazprom subsidiary (the license holder). With respect to Yuzhno Russkoye, the joint venture holds the license, owns infrastructure, has ownership rights to the extracted resources and bears full responsibility for the project’s financing and implementation.
Egypt
The Group’s Egyptian assets are governed by concession agreements between it, the Arab Republic of Egypt and the Egyptian General Petroleum Corporation ("EGPC"), or the Egyptian Natural Gas Holding Company ("EGAS") or the Ganoub El Wadi Petroleum Holding Company ("GANOPE"), as applicable. EGPC, EGAS or GANOPE, as applicable, controls and performs executive activities in many aspects of the Egyptian hydrocarbon industry, including exploration, production, refining, transportation and marketing.
The concession agreements govern, among other things, the operation of the asset following commercial discovery, recovery of operating costs and expenses and production sharing between the Group and EGPC, EGAS or GANOPE, as applicable. Usually the concession agreement contains the definitions, the grant of rights, the license holder’s obligations, time frames and relinquishment rules during the initial exploration period and its extension, the applicable rules in case of a commercial discovery and the production sharing terms during the production phase. Subject to these agreements, the Group funds all costs and expenses in respect of exploration, development and related operations but is entitled to recover these costs and expenses through production, to the extent such production is not used in operations and up to an annual cost recovery cap of all hydrocarbons produced. These agreements also govern the proportion of any remaining production to split between the Group and EGPC, EGAS or GANOPE, as applicable. This system does not apply to the flagship West Nile Delta project because the concession agreements
212 for the West Nile Delta project neither contain any right to recover costs in kind nor any production split for the production from the initial reserves. However, economically the costs and expenses in respect of exploration, development and operations are reflected in the gas price and production entitlement agreed with EGPC.
Argentina
In Argentina, oil and gas exploration and exploitation activities are normally governed by joint venture agreements. Under Argentine Law, these agreements are framed as a temporary union of companies (the "UT") regulated by Articles 1463 et. seq. of the Argentine Civil and Commercial Code. The UT does not constitute a separate legal entity with respect to the parties that comprise it, except with respect to accounting and tax matters. The UT must be registered before the Public Registry of Commerce and needs to appoint a representative to establish a domicile and to constitute a minimum operative fund for the purpose of registration. The UT governs the relationship between the parties and forms the basis for day-to-day management of the activities, allocation of costs, decision making processes, the operators’ duties etc. A management committee is established as the supreme body of the UT, in which all parties are represented, and have a vote pursuant to their participating interest.
Mexico
The Group’s Mexican assets are covered under consortia with different oil and gas companies. For each of these consortia, the Group has executed joint operating agreements to establish the rights and obligations of the members of the consortium in respect of the operation and the activities under the relevant grants its holders; all based on AIPN international standard terms. Under each of the consortia the Group established an operating committee, where decisions for these activities are discussed and adopted; in general, decisions are taken by at least two members of the relevant consortia, except in the event of deadlocks, where decisions to timely comply with minimum work obligations under the respective grants or other decisions specifically required to ensure safe and reliable operations ultimately are with the relevant operator, and other key decisions which require unanimity, such as voluntary relinquishment, unitization, termination of the relevant grant or its amendment.
Gas and Oil Sales Agreements within the E&P business
Norway
The Group sells its Norwegian oil and gas production under various sales and purchase agreements with third-party buyers. Such third-party buyers are generally high-quality counterparties who have strong records of timely payment. These agreements are partly term contracts and partly stipulating that the Group sells and the buyer purchases 100 per cent of the production from a given asset. Contract durations vary. Gas prices under these contracts are usually linked to hub prices such as UK national balancing point (NBP) or Dutch TTF. The Group usually bears the transport costs up to the virtual trading points under these contracts. Oil sales prices are generally linked to the reference oil such as Brent and Norwegian Norm price differential to specific blends. Condensate/NGL contract prices usually are linked to widely used price publications.
Since the start of the fourth quarter of 2020, the Group ships the majority of its dry gas to the hub markets in Europe and UK and sells the volumes via the Group’s own direct market access at the virtual trading points.
Germany
The Group’s German crude oil production volumes from Mittelplate and Emlichheim are sold to major oil companies. The Group has an established alternate marketing route for crude oil production from Mittelplate in the event that buyers do not offtake the crude oil.
Condensate produced at the Group’s Mittelplate production is sold to a major industrial customer at prices linked to wholesale gas market. The crude oil sold is linked to international crude oil benchmarks such as Brent. Condensates that are produced at its Hemsbünde field are marketed under sales agreements to a major oil company, including the production shares from the other partners in the Hemsbünde consortium. The purchase of the partners’ shares in production is administered under separate purchase agreements.
The Group’s German gas, to the extent not used for own consumption and own production for internally used electricity, is sold either directly to third-parties mainly based on EFET standard terms or spot via the wholesale
213 market (via brokers or PEGAS). The pricing is based on market prices (fixed or floating). The Group has several EFET agreements with major trading and gas distribution companies in place. The Group sells the gas volumes via a tender process or via OTC trades to its EFET partners at the virtual trading points.
The Group also purchases under a long-term contract physical gas from a Norwegian producer in North West European Hubs until 2023 and, as of the date of this Prospectus, delivers most of this gas to a chemical company via regulated pipelines with delivery points in Germany and Benelux countries. All the gas not sold to end-users from this long-term contract is marketed via its direct wholesale market access.
Russia
The marketing of gas from Yuzhno Russkoye is conducted through take or pay sales agreements between the joint venture and Gazprom and indirectly through its shareholders’ trading companies to Gazprom.
Natural gas and gas condensate production in Achimov 1A operates under a service agreement with the relevant license holder (a wholly-owned Gazprom subsidiary) which pays a service fee. The gas and gas condensate after the extraction is owned by this license holder and is marketed by Gazprom Group.
For Achimov 4A and 5A, the joint venture provides services on hydrocarbons production to the license holder (a wholly-owned Gazprom subsidiary) under a service agreement. Under the joint venture, the license holder pays for the rendered services and the extracted hydrocarbons are purchased from this license holder. The joint venture sells these hydrocarbons to the shareholders’ trading company which, in turn, sells them to Gazprom for its further distribution to customers.
All of the production from the Group’s Russian assets with Gazprom is sold via long-term agreements. A portion of the gas production is priced by reference to the regulated gas prices in Russia. These arrangements provide the Group with a high degree of visibility over revenues associated with these assets and reduces its exposure to market price fluctuations.
The other portion of the gas production is priced by reference to German and international market indices. The pricing of the liquids is also partially based on international market indices, which provides the Group with a high degree of transparency on the price level.
Egypt
In Egypt, with respect to gas production, the Group generally enters into gas and condensate sales agreements with EGAS or EGPC, as applicable. The gas sales agreements terms are linked to the life of the relevant field and the agreement remains in effect until (i) production is no longer economically sustainable in the judgement of all parties, (ii) the expiration of its rights under the relevant concession agreement or (iii) the mutual decision of both parties to terminate the gas sales agreement.
With respect to oil, the Group enters into term sales contracts with EGPC which generally have a period of 12 months. Parties may choose to extend the sales agreement not later than 90 days prior to the expiry of the respective period. Under the term sales contracts, the Group must make available to EGPC the total quantity of its share of oil production under the relevant concession agreement. As for any incremental oil production above an agreed baseline, an existing export agreement is in place, to market such incremental oil by EGPC on its behalf.
All of the production from its Egyptian assets is sold on a contracted basis with prices set by reference to quality differentials for liquids and international benchmarks such as Brent, NBP or Henry Hub for gas. The Group’s major gas production from WND is priced within the range of a floor and cap, reducing its exposure to market price fluctuations. These arrangements provide the Group with a high degree of visibility over revenues associated with these assets.
The combination of life-of-field contracts for gas and the growing domestic demand in Egypt as well as the relatively fixed prices provides the Group with a degree of offtake and pricing security.
214 Argentina
The Group monetises the hydrocarbons it produces under sale and purchase of oil agreements and sale and purchase of gas agreements. The oil production is primarily sold to a multinational oil and gas company. With respect to natural gas, the Group sells equity gas to all market segments, while maximising volumes to the most profitable ones (LDC, CNG, power generation, industrial segment and exports).
A majority of the production from the Group’s Argentinian assets is sold on a contracted basis with prices set by bilateral negotiations or reference to governmental regulations. As of the date of this Prospectus, the gas sales contracts have, on average, one year-duration but there are also very short-term basis agreements (based on daily and monthly spot prices). Prices in regulated sectors are dictated by the government, which comprises around 70 per cent. of sales. One of the largest gas buyers is CAMMESA – a company partially owned by the Argentine State and private companies of the electric sector- which focuses on buying gas for power plants in the country. The other main buyers are the distribution companies ("LDC") who supply gas to residential and commercial customers. Exports to Chile through pipelines are increasing with time due to oversupply in the country.
Mexico
The production from Ogarrio is sold to Pemex. Sales are made in accordance with oil and gas purchase agreements with Pemex covering a period of two years, which is automatically renewed for periods of one year unless terminated by a party with 90 days’ prior written notice.
Gas and Oil Transportation Agreements
Norway
The Group has entered into transportation agreements providing for the transport, handling and redelivery of oil produced by its fields. Generally, these agreements remain in force until these assets cease to produce oil.
The Group has entered into agreements for transportation, processing and fractionation of gas and natural gas liquids from its fields in SEGAL, SAGE and Gassled systems.
The Group has entered into Contract of Affreightments ("COAs") with Teekay Shipping Norway AS for the shipment of crude oil from the Knarr and Skarv fields. The COAs has a firm duration of six years from the start-up date with options to extend the contract at the charterer’s options.
Most of the gas and oil transportation agreements contain send or pay provisions according to which the Group has to make payments for the transportation to the agreed quantities even when transportation services were not used. In addition, each party shall indemnify, with certain exceptions, the other for damages, including indirect losses ("knock- for-knock"). There are no caps on total liability.
Germany
The Group’s Mittelplate crude oil is transported by pipelines owned and operated by the Group to two separate tank farms in Brunsbüttel (Schleswig-Holstein). The first is linked to the refinery in Heide (Schleswig-Holstein) where a greater share of the Group’s Mittelplate crude oil is refined and the second to the local bitumen refinery in Brunsbüttel operated by a major oil company. The Group has the rights to use this tank storage in Brunsbüttel for export purposes.
As of the date of this Prospectus, the Group’s Emlichheim crude oil is transported by railroad transport to a refinery in Lower Saxony. The railroad transportation will be replaced by a pipeline owned and operated by the Group. Construction of this pipeline started in July 2020. The pipeline will transport the crude oil production to Osterwald, where it will be channelled into an existing pipeline operated by a joint venture including the Group to the refinery in Lingen. The start of the pipeline transportation is scheduled for April 2021 and the transportation agreement with the railroad transportation company is terminated with effect as of end of June 2021.
Oil from Hankensbüttel fields (Lower Saxony) is transported by pipeline to a terminal in Misburg (Lower Saxony), and then delivered by railway to a refinery in Northwest Germany.
The Group’s German gas is delivered primarily via a regulated transport system to the relevant market areas and customer exit points.
215 Russia
Gas from Yuzhno Russkoye field is shipped to the gas metering station near the western border of the Russian Federation through the gas transmission system under the respective gas transportation agreements with Gazprom. The gas transportation agreement with Gazprom contains a description of transportation services provided by Gazprom (including parameters of gas metering, gas quality, gas acceptance regime) and states the terms of payment agreed by the parties considering the applicable gas transport regulations of the Russian Federation.
Egypt
The Zeit Bay and Ras Budran oil and gas fields have their own facilities to treat, process, handle and ship oil and gas. In Zeit Bay, processing facilities are used as a hub serving not only the Group’s own production, but also production from neighbouring concessions of oil and gas fields. The main services provided are storage, handling, processing and loading. Each field’s transportation, storage, handling and processing services are governed by a separate agreement. All charges are at cost (in addition to a portion of the overheads) and are used to minimize the total burden of running costs in the Zeit Bay facilities.
For WND concessions production, some of the existing fields are treated in host facilities against payment of a tariff. The arrangement is governed by a transportation, processing and operating service agreement with the host. For the remaining fields under such concessions, the Group has existing self-owned infrastructure for treating and processing gas. The Group also shares a few of its services with neighbouring host facilities under a facility sharing and operating service agreement.
Argentina
The oil produced by the Group jointly with its partners in the Aguada Pichana East Block and the San Roque Block (Neuquén Basin), is transported through two different oil pipelines, owned by YPF S.A. and OLDELVAL S.A., respectively. The legal framework which regulates the access to the oil pipelines´ transportation capacity establishes an open access regime, which means that any oil producer may have access to the available transportation capacity. The fees charged by the owners of the oil pipelines for the transportation service are regulated by the National State.
With respect to the natural gas production, customers of the Group usually book transport capacity as gas is usually sold at the wellhead or central processing plant.
Mexico
The gas and oil produced from the Ogarrio license is sold directly after separation. The crude oil is eventually sent for distribution to the Palomas Crude Oil Commercialisation Centre ("CCC Palomas"). After separation, the gas is sent for compression to the Ogarrio Compression Station via a gas pipeline. A portion of the compressed gas volume is sent to the gas-lift network of the field, while the other portion is sent to La Venta Gas Processing Complex.
Health and Safety
The Group actively manages the safety of all personnel working in its operations, including through the application of health and safety standards, the implementation of security measures at its facilities and internal and external audits of health and safety risks. Pursuant to its health and safety principles the Group endeavours to:
• shape HSEQ culture through its own behaviour by promoting cross-unit learning, exchanges and collaboration and driving cultural development;
• provide a safe and healthy working environment for those working on its behalf;
• drive a strong reporting culture to enable transparent follow up and communication of incidents, near misses and observations
• identify, understand and manage risks worldwide to protect the company, its colleagues and ensure business continuity; and
• implement and maintain robust barriers for known risks as well as practices to create awareness of early signals to prevent incidents from happening.
216 The Group has established safety cases for all operated production facilities and has robust emergency preparedness and incident management in place as well as regular training for employees and contractors. Its management systems are in line with the international ISO standard for occupational health and safety (ISO 45001) and it pursues regional certification of ISO 14001 (environmental management) and 50001 (energy management).
The Group continuously strives to manage risks to minimize harm to people, the environment and its assets as part of its "zero harm" policy. In support of this, the Group uses a range of measures to track its HSE performance, such as the industry recognized metric LTIF. LTIF is benchmarked on a regional basis for closer comparison with our peers. In 2019, on a pro forma basis, the Group recorded a global LTIF value of 0.43, which lies below the industry average of 0.83 (IOGP Europe) in 2019 (latest available data). For the quarter ended 30 September 2020, the Group recorded a global LTIF value of 0.68, compared to 0.58 for the quarter ended on 30 June 2020. For the quarter ended 30 September 2020, the Total Recordable Injury Rate per million hours worked ("TRIR") of the Group was 1.52 compared to 1.65 for the quarter ended on 30 June 2020.
Continuous improvement is facilitated by setting annual HSEQ targets across the organization that are implemented, monitored and reflected upon by the Group at the end of each year in order to identify new areas for improvement based on business requirements and HSE performance.
Furthermore, the Group is committed to be a responsible and accountable member of society who engage constructively with all relevant stakeholders. To achieve this aim, it fosters dialog and regularly informs about its activities.
Climate and Environmental Protection
The Group is committed to protecting the environment for current and future generations and strives to continuously minimize its ecological and operational footprint and use resources efficiently. The Group is subject to extensive laws and regulations governing environmental matters.
In November 2020, the Group has announced an ambitious set of climate targets in order to contribute to a global energy transition and to support European Union’s 2050 carbon neutrality target. The Group intends to reduce to net zero its "Scope 1" (direct: greenhouse gas emissions, which occur from sources that are owned or controlled by Group) and "Scope 2" (indirect: greenhouse gas emissions from the generation of purchased electricity consumed by the Group) greenhouse gas emissions of the operated and non-operated upstream activities at equity share basis by 2030 and bring down the methane intensity to 0.1% by 2025. Beyond 2030, the intention of the Group is to significantly reduce "Scope 3" emissions (indirect greenhouse gas emissions of the value chain, e.g. "use of sold products" category) as well, which are mainly generated through the combustion of gas and oil produced by Wintershall Dea.
The Group voluntarily committed itself to the World Bank’s "Zero Routine Flaring by 2030" initiative. The Group has already eliminated routine flaring of associated gas at its operated assets and uses this gas to generate electricity, heat and steam, which has led to carbon dioxide reductions and savings. In addition, the Group is exploring technologies to also prevent flaring in non-routine operations.
During the next ten years, the Group plans to invest around €400 million in reducing and offsetting greenhouse gas emissions. The Group has developed an ambitious four-pillar climate approach, which is based on portfolio composition, strict management of emission footprint, offsetting and the development and use of innovative technologies, like CCS and Hydrogen, all underpinned by a culture of transparency through transparent reporting. With around 10 kg CO2e/boe the Group has already a low Green House Gas Emissions ("Scope 1", "Scope 2") intensity compared to IOGP average (2019: ~ 18.5 kg CO2e/boe).
In February 2020, the Group became a supporter of the Task Force on Climate-related Financial Disclosures (TCFD) and plans to implement the TCFD recommendations over the next year. In 2020, the Group has started to perform scenario analyses and integration into the risk management framework.
In 2017, the Group committed itself to the Methane Guiding Principles and thus the continuous reduction of methane emission, which is released during production or transport of natural gas. This commitment includes making improvements along the entire value chain and endorsing reasonable measures and regulations regarding methane
217 emissions. The Group quantifies its methane emissions in exploration and production and derives action plans to reduce them. As the Group operates in ecologically sensitive shallow water zones, such as the North German Wadden Sea (Mittelplate), the Group believes it has a responsibility to be aware of its impact on the environment and ensures natural ecosystems are protected. Therefore the Group conducts risk assessments and studies to ascertain the potential environmental impact of its activities. For example, at its Mittelplate asset, the Group has focused on implementing several environmental-friendly measures including zero discharges and zero flaring, supplying via low draught ships, dimmed lighting, low noise levels and adhering to environmentally sensitive pipeline construction guidelines. The Group has not had any oil-related incidents at Mittelplate for more than 30 years. In addition, the Group performs water risk assessments on several of its sites and engages in platform recycling in the North Sea.
The Group also supports innovative natural gas technologies. For example, the Group is one of the partners of the Innovation Award of the German Gas Industry and initiators of the "Zukunftswerkstatt Erdgas" project to promote new power-to-gas and decarbonisation of natural gas developments. One aim is to contribute to a low carbon world. This includes technologies to further reduce our emissions from operations and the assessment of carbon capture and storage (CCS) and hydrogen technologies. A dedicated organization has been created for this purpose.
The Group is also in the process of digitalising its core processes to support its long-term sustainability and viability in areas such as climate protection, adherence to international social standards and long-term growth. Our investments in Digital are driven by measurable and sustainable impact. We focus on few "best bets" by developing and scaling up digital solutions that have the highest impact in our core E&P business.
Other environmental matters and proceedings
Wietze sludge pit
The Group has been summoned as a party in administrative proceedings initiated by Zweckverband Abfallwirtschaft Celle against the state of Lower Saxony, which is represented by Landesamt für Bergbau, Energie und Geologie (LBEG), the competent mining authority. Zweckverband Abfallwirtschaft Celle is a voluntary alliance of local government entities, acting as competent authority regarding waste management and soil protection in the Wietze area.
The Group previously owned and operated a sludge pit (Zentralschlammgrube Wietze) close to its facilities in Wietze. The pit was built in 1933 and in use until 1968. It was sold to the district of Celle in 1984. The district originally intended to use the pit as a landfill site, but never did so. According to the claim, the Lüneburg Administrative Court should oblige the Mining Authority LBEG to take measures against the Group as the former operator and owner of the pit in order to safeguard and avert typical mining hazards.
A full excavation of the pit, which the Group considers unlikely to be required, would lead to costs which could exceed €20 million, depending on the method of disposal. The Group believes that sealing of the pit as proposed by an external expert would entail costs of approximately €5 million.
Emlichheim
Emlichheim is one of the oldest oil fields in Germany, situated on the Dutch border. The Group has been recovering oil there for more than 70 years. During maintenance work on the injector wells the Group discovered end of 2018 damage to the casing of well Emlichheim 132 (Em 132) and at the beginning of 2019 also of well Emlichheim 51 (Em 51) at depths of between 148 and 515 meters (Em132) respectively of between 555 and 775 meters (Em 51). Water that is also produced during oil production is returned to the oil reservoir through the wells to maintain pressure in the reservoir. Upon discovery of this damage, the Group shut down the two wells concerned and informed the responsible authorities.
Extensive investigations regarding Em 51 have been and continue to be carried out to ascertain whether and where water has leaked from the defective areas of the reservoir. A recovery test carried out on Em 132 shows that reservoir water has leaked into the surrounding formation and, consequently, further investigation of the geological and hydro- chemical conditions down to greater depths has been conducted. The extent of the reservoir water leakage was determined by injection tests. The Group’s estimates assume that between 140,000 and up to 220,000 cubic metres of reservoir water were leaked between 2014 and 2018. Remediation of the damage by pumping back the leaked
218 reservoir water already began at the end of 2019. To monitor the groundwater quality, suitable monitoring sites were installed close to the surface but also in greater depth. The ongoing investigations of samples from these monitoring sites have shown that as of the date of this Prospectus there are no indications of a hazard to human health. Following the discovery of the damage at Em 132 and Em 51, the remaining injection wells in operation at Emlichheim were investigated and no similar issues were found.
The authorities still conduct their own investigations in order to review and assess whether there have been violations of laws in connection with aforementioned damages at EM 132 and EM 51 and with aforementioned leakage. The Group is working with the relevant authorities to finally assess and remediate the contamination.
Social Responsibility
The Group strives to be an attractive employer, reliable partner, and a good neighbour; therefore it fosters high standards in all activities together with the Group’s partners.
The Group strives to act worldwide in accordance with internationally acknowledged human rights standards, as well as key labour and social standards. These include the Universal Declaration of Human Rights, the OECD Guidelines for Multinational Enterprises, the ILO core labour standards and the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy. As a member of the UN Global Compact, we support the ten universal principles, the United Nations Sustainable Development Goals and the United Nations Guiding Principles on Business and Human Rights. The Group is guided by them in drafting its internal requirements and organising its processes.
The Group joined an industry initiative to promote human rights standards in the supply chain in 2019, to support the development of framework conditions. The global industry initiative carries out globally standardised human rights assessments for contractors and suppliers.
The Group promotes an inclusive company culture and strives to employ people regardless of their gender, nationality, ethnic origin, religion or worldview, physical ability, age, sexual orientation and identity. The principles of diversity and equality. By signing the Corporate Charter of Diversity in Germany, the Group has made its dedication to diversity visible to the outside world. With the proportion of women employed at the Group of around 27% (as of 31 December 2019), the company is well positioned in terms of its overall workforce. The Group has set itself diversity targets, where it aims to for >30% women in executive positions (up to two levels below the Management Board of the Company) by 2025. We also want to maintain a high proportion of people from varied nationalities (>35%) in executive positions by 2025.
The Group’s ambition is to generate economic and social value in the communities where it operates by creating local jobs and supporting local supplier development. For example, in Egypt (with the exception of WND) and Algeria, all operations during field development and production are executed by operating companies established by these joint ventures and which recruit, wherever possible, local staff. Foreign expert personnel are seconded to these joint ventures only where necessary in order to add a required specific skill. Alongside the development of the Disouq gas fields in Egypt, the Group has designed a program to support the local community with agricultural projects. Furthermore, tendering procedures in the joint ventures also ensure a priority to contract services with local companies, according to defined rules taking into account capabilities and commercial aspects.
The Group is committed to be a responsible and accountable member of society that engages constructively with all relevant stakeholders. To achieve this aim, we foster dialog and regularly inform about our activities. We also support diverse social, cultural and educational projects and invest in the local people and communities in which we operate. Our social engagement is based around education and science, culture, and social participation. For example, in Germany, the Group supports external vocational training, voluntary fire brigades, and organizations supporting the homeless and has worked with school organizations to support technical and mathematical education through practical industry insights. In Norway, the Group partners with the Stavanger Symphony Orchestra and in Russia supported the construction and operation of an inclusive school. In Egypt, the Group provides scholarships for students at Alazhar University and supports the GIZ Vocational Training and the German School in Cairo. The Group is particularly focused on promoting science and technology. Together with its partner, Gazprom, the Group launched
219 the Young Vision Award for budding scientists which honors students’ sustainable and efficient technology solutions in the field of oil and gas production.
Insurance
The Group maintains the types and amounts of insurance coverage that it believes are consistent with customary industry practices in the jurisdictions in which the Group operates. Its oil and gas properties and liabilities are insured within an operational insurance package. Coverage under the terms of this insurance package includes physical damage, operators extra expense and third-party liabilities. Coverage is placed in respect of worldwide assets and oil and gas exploration and production activities. Limits and deductibles in force are in line with international oil industry insurance standards. The Group also carries general liability, directors and officers, and marine and storage insurances. The Group believes it has adequately provisioned for, or otherwise protected its operations against, risks consistent with customary industry practices.
The Group’s philosophy is to permanently review and arrange such other insurance from time to time in respect of its other operations as required and in accordance with industry practice and at levels which the Group feels adequately provide for its needs and the risks that it faces. The Group has not made any material claims under its insurance policies that would either make them void or materially increase their premiums.
The Group’s material investments in its North African and Russia assets, as well as its investment in Ogarrio, Mexico, benefit from investment guarantees provided by the Federal Republic of Germany for direct investments made by German companies in developing and emerging countries. These guarantees cover direct investments made by German companies in developing and emerging countries and provide protection against certain political risks, including expropriation, nationalization, civil wars, wars or other armed conflicts and payment embargoes or moratoria, under certain conditions. The coverage of the guarantees is limited by the general terms and conditions. The guarantee amount is capped up to 95 per cent. of the nominal guarantee amount respectively by 95 per cent. of the time value of the project. In general, there can be no assurance that these investment guarantees will provide sufficient protection against all the types of risks the Group faces at its assets located in the relevant countries. Accordingly, there can be no assurance that these investment guarantees will provide sufficient protection against all the types of risks the Group faces at its assets located in the relevant countries.
IT
Overall responsibility for the IT systems of the entire Group resides with the central unit "Information Technology". The unit is headed by the SVP Information Technology who reports to the CFO. IT is set up as a global function with local presence in the business units. Global IT is accountable for the provision of information services that fulfil the business requirements in respect to functionality, availability, security, and costs for all business units and central functions of Wintershall Dea. The central IT unit forms the central reporting line of all IT resources and provides a centre of excellence and expertise for cyber security.
With the Merger, the Group seized the opportunity to design a completely new IT organization and operating model from ground up that is centred on services delivered to the IT users. The new delivery model will consist of predominantly cloud-based services. Information services and support with the need for strong Wintershall Dea business know-how to be retained in-house.
The entire legacy IT infrastructure will be modernized or replaced in the ongoing IT Post Merger Implementation program to reduce maintenance effort and improve end-user experience. During this program the application and service landscape will be harmonized to reduce complexity.
Employees
The Group believes it has a strong and established team of highly competent professionals in its core disciplines of business development/M&A, exploration, development and production. Its business model involves using the services of the oil and gas industry supply chain to supplement its in-house capabilities, benefiting from the dedicated and highly experienced resources of its contracting partners for execution of its operational programmes. The Group believes it has well established working relationships with these core contracting partners.
220 As of 30 September 2020, the Group had approximately 2,400 FTE employees.
Certain of our employees in Germany, Norway and Argentina are unionized. The Group also has agreements with unions in Germany mainly covering salaries for workers and these are up for renewal by 31 December 2020.
As part of the post-Merger integration process, the Group negotiated redundancy plans with works councils and unions to reduce headcount by approximately 1,000, mainly in Germany and Norway. By the end of 2020, all exit- agreements have been signed.
The Group believes that it has overall good relationships with its employees and the unions involved and has not experienced any significant labour disputes, strikes or lock-outs during the last four years.
Legal and other proceedings
The Group becomes involved from time to time in various claims and lawsuits arising in the ordinary course of its business. The Group may also be impacted by claims or suits relating to its licenses or assets where it is not directly a party, for example where a party may seek to challenge a government or other authority’s award of a license or contract. Set out below are descriptions of the legal and other proceedings that the Group believes are material.
OPAL
The Group indirectly holds a 40 per cent. co-ownership share in the OPAL pipeline via WIGA and its subsidiary, W&G Transport Holding GmbH ("WGTH"), which holds 80 per cent. The pipeline is operated by OPAL Gastransport GmbH & Co. KG ("OGT") that markets the respective capacity share of 80 per cent. Lubmin-Brandov Gastransport GmbH, Essen, holds the remaining co-ownership interest of 20 per cent. and markets the respective capacity share of 20 per cent. There are two proceedings, one before the European Court, brought by state owned entities in Poland and Ukraine and the Republic of Poland, and the other before the Higher Regional Court of Düsseldorf, brought by state owned entities in Poland and Ukraine (the latter rejected), in an attempt to void a settlement agreement between OGT, Gazprom, Gazprom export and the FNA with the consent of the European Commission, regarding the exemption decision of the OPAL pipeline from certain regulatory restrictions.
The European Court has rejected all claims for preliminary injunctions and the claims against the European Commission brought by the state-owned entities from Poland and Ukraine, but sustained the claim against the European Commission brought by the Republic of Poland. The European Court decided on 10 September 2019 in favour of the Republic of Poland and ruled that the European Commission’s decision approving the settlement agreement is void. The Federal Republic of Germany filed an appeal against this ruling on 20 November 2019. A decision of the European Court of Justice is anticipated in the course of 2021, the hearing of the appeal is scheduled for 13 January 2021. The Higher Regional Court of Düsseldorf court rejected claims for preliminary injunctions and suspended proceedings until decision of European Court is announced. The proceedings are still suspended, but it is expected that the Higher Regional Court of Dusseldorf would follow that ruling.
In addition, the FNA instructed OGT to stop any capacity marketing and execution of capacity bookings in accordance with the settlement agreement and to market and operate all capacities in accordance with the exemption decision issued in 2009, which, especially, prohibits market dominant players in the Czech Republic from booking more than 50 per cent. OGT appealed this decision and has submitted its statement to the Higher Regional Court of Dusseldorf end of September 2020. The hearing is scheduled for April 2021.
These pending legal actions against the OPAL settlement agreement could limit the marketing of OPAL capacity on a long-time basis and thus adversely impact the performance of the Group.
PCA
The Group takes part in the Nord Stream 2 project as a financial investor and has committed, together with other European partners (ENGIE, OMV, Shell and Uniper), to provide long-term financing of the project. The Polish competition authority ("PCA") instigated competition proceedings on 30 April 2018 in connection with these financing arrangements. In these proceedings, the PCA alleged that the Group’s subsidiary, Wintershall Dea Nederland Transport and Trading B.V. ("WDNTT"), as well as the other lenders infringed their notification
221 obligations by participating in the financing of the Nord Stream 2 project without submitting the transaction for approval in violation of the Polish Act on Competition and Consumer Protection.
However, on 7 October 2020, the PCA ended its proceedings and imposed fines on the financial investors including the sole owner Gazprom. In addition, the authority is demanding that the financing agreements be terminated within 30 days. The fines correspond to 10% of the previous year's turnover of the companies financing Nord Stream 2 AG (in case of WDNTT approximately €6.9 million). The fines imposed translate to the highest possible fine for an alleged infringement of the notification obligation for the establishment of a joint undertaking in Poland. The Group believes the fine is unfounded and represents the PCA applying an unconventional approach in this case by adopting a wide interpretation of the notion of concentration. Consequently, on 5 November 2020, WDNTT appealed this decision of the PCA before the competent Polish court with suspensive effect. In total we expect the appeal proceeding to last about 3-5 years.
Administrative, Management and Supervisory Bodies of the Guarantor
The Company is a German limited liability company (Gesellschaft mit beschränkter Haftung, GmbH) with its registered seat in Celle, Germany. In accordance with applicable German law, the Company has a two-tier board system consisting of five managing directors (the "Managing Directors") forming the Management Board (Geschäftsführung) and a Supervisory Board (Aufsichtsrat). The corporate bodies of the Company further comprise the Shareholders’ Meeting (Gesellschafterversammlung) in which the Shareholders adopt resolutions in relation to the Company. The Shareholders have further set up a shareholders’ committee (the "Shareholders’ Committee") to consult on certain relevant matters and align their interests in relation to the Company, in particular, prior to taking any (relevant) decisions in the Shareholders’ Meeting. The details of the corporate governance architecture of the Company are set out in and regulated by the Company’s Articles of Association (Satzung), the rules of procedure (Geschäftsordnung) for the Management Board and for the Supervisory Board as well as a shareholders’ agreement entered into by the Shareholders and the Company (the "Shareholders’ Agreement").
Management Board
The Management Board is responsible for delivering the strategy and ongoing operations. It consists of five managing directors: the Chief Executive Officer (CEO) and four additional members. Dawn Summers, Chief Operating Officer (COO) has been appointed to the Executive Board of Wintershall Dea on 1 June 2020 and succeeds Maria Moræus Hanssen.
The members of the Management Board conduct the day-to-day operations of the Company and are jointly responsible for the overall management of the Group. The Management Board decides on all matters in accordance with the applicable law, the Articles of Association and the rules of procedure for the Management Board.
The business address of the members of the Company’s Managing Board is the same as the Company’s business address.
The following table sets out the current composition of the Management Board and each Managing Director’s respective area of responsibility.
Name Year of Position Other material board memberships Birth Mario Mehren 1970 Chief Executive Officer (CEO) Wintershall Aktiengesellschaft (Member of the Supervisory Board) CJSC Severneftegazprom (Member of the Board of Directors) Nord Stream AG (Member of the Shareholder Committee)
222 Name Year of Position Other material board memberships Birth Dawn Summers 1973 Member of the Board, Wintershall Dea Nederland B. V. Chief Operating Officer (COO), (Chairman of the Board of Directors) Region EMEA Wintershall Dea Norge A. S. (Chairman of the Board of Directors) Wintershall Noordzee B. V. (Chairman of the Board of Directors) Paul Smith 1971 Member of the Board, Vesta Energy Ltd. (Member of the Chief Financial Officer (CFO) Board of Directors) Wintershall Dea Argentina S. A. (Member of the Board of Directors) Thilo Wieland 1969 Member of the Board, GASCADE Gastransport GmbH Region Russia, Latin America (Chairman of the Supervisory Board) and Transportation NEL Gastransport GmbH (Chairman of the Supervisory Board) Wintershall Aktiengesellschaft (Member of the Supervisory Board) AO Achimgaz (Member of the Board of Directors) CJSC Severneftegazprom (Member of the Board of Directors) LLC Achim Development (Member of the Board of Directors) LLC JV Wolgodeminoil (Deputy Chairman of the Board of Directors) Wintershall Dea Argentina S. A. (Chairman of the Board of Directors) Wintershall Dea Mexico Holdings GP Ltd. (President of the Board) Hugo Dijkgraaf 1975 Member of the Board, Wintershall Dea Noordzee B. V. Chief Technology Officer (CTO) (Member of the Board of Directors)
Supervisory Board
The Supervisory Board of the Company is primarily responsible for the supervision of the Management Board. It is composed of nine members including three employee representatives and six members to be appointed by the Shareholders, with four of those six members to be nominated by BASF and the remaining two members to be nominated by LetterOne. The chairman of the Supervisory Board alternates every 15 months between a BASF nominee and a LetterOne nominee.
While the Supervisory Board must not exercise any management functions, the Management Board requires the consent of the Supervisory Board for certain transactions and measures set out in the Articles of Association, including:
• acquisition, sale and encumbrance of real property if the value of the asset in the individual case exceeds €1 billion;
• acquisitions of any businesses and interests in businesses, if the value exceeds €1 billion in the individual case;
223 • the entering into enterprise agreements and agreements pursuant to the German Transformation Act (Umwandlungsgesetz); and
• integrations and squeeze outs, takeover offers and resolutions on such measures in portfolio companies.
The following table sets out the current composition of the Company’s Supervisory Board.
Name Position Other material board memberships Lord Browne of Chairman Huawei Technologies (UK) Co Limited Madingley (Chairman) Windward Maritime Limited (Chairman) IHS Markit (Director) Madingley Ltd (Director) Pattern Energy Group (Director) SparkCognition (Director) L1 Energy Advisory Board (Chairman) Stanhope Capital Advisory Board (Chairman) L1 Energy (UK) LLP (Executive Chairman) Blue Bear Capital (Member of the Advisory Board) Hyperloop Transportation Technologies (Member of the Advisory Board) Kayrros SAS (Member of the Advisory Board) Angeleno Group (Member of the Board of Advisors) Dr. Hans-Ulrich Engel First Deputy Chairman Nord Stream AG (Member of the Shareholder Committee) Landesbank Baden-Württemberg (Member of the Advisory Board) Wintershall Aktiengesellschaft (Chairman of the Supervisory Board) Michael Winkler Deputy Chairman, Plastic Omnium Automotive Exteriors employee representative GmbH (Deputy Chairman of the Supervisory Board) Michael Heinz Member BASF Antwerpen N. V. (Chairman of the Administrative Board) Saori Dubourg Member - Dr. Wolfgang Haas Member BASF Corporation (Member of the Board of Directors) Lucura Versicherungs AG (Chairman of the Supervisory Board) BASF Coatings GmbH (Member of the Supervisory Board)
224 Name Position Other material board memberships German Khan Member Alfa Group Consortium (Member of the Supervisory Board) Rosvodokanal Group (Chairman of the Board of Directors) A1 Investment Holdings S. A. (Chairman of the Supervisory Board) LetterOne Holdings (Member of the Board of Directors) Birgit Böl Member, employee representative - Sabine Brandt Member, employee representative -
Conflicts of Interest
The Guarantor is not aware of any conflicts of interest on the part of the members of the Management Board and the Supervisory Board between their respective duties to Wintershall Dea GmbH and their respective private interests or other commitments.
Shareholders’ Meeting
An ordinary Shareholders’ Meeting will be held at least once a year during the first eight months of each fiscal year of the Company. The Management Board shall convene an extraordinary Shareholders’ Meeting if required by law or at the request of a Shareholder. Shareholders’ Meetings will be chaired by a member of the Supervisory Board, determined by the Supervisory Board members that were elected by the Shareholders’ Meeting. Each Euro of an Ordinary Share grants one vote. Unless the Articles of Association or mandatory statutory provisions require otherwise, Shareholders’ resolutions are passed with a simple majority of the votes cast.
The Shareholders’ Meeting will resolve, inter alia, on the appropriation of the balance sheet profit (Bilanzgewinn), the formal approval of the acts (Entlastung) of Managing Directors and members of the Supervisory Board, the appointment of the auditors of the annual accounts, the election of members of the Supervisory Board, and where provided for by law, the adoption of the annual accounts (Feststellung des Jahresabschlusses). The Shareholders’ Meeting will further resolve upon the transactions and measures set out in the Rules of Procedure (Geschäftsordnung) for the Management Board requiring the prior consent of the Shareholders’ Meeting as well as certain other matters referred to the Shareholders’ Meeting by operation of applicable law. Such transactions and measures (the "Reserved Matters") include material acquisitions or disposals, the discontinuation or commencement of business activities, material settlements of legal disputes or arbitration proceedings, changes in the composition of the Management Board and the rules of procedure, the election of the chairman of the Supervisory Board, the issuance of new equity or capital contributions by Shareholders and decisions on dividends.
Shareholders’ Committee
The Shareholders have set up a Shareholders’ Committee to discuss at shareholder level relevant matters and co- ordinate their interests in relation to the Company. Decisions of the Shareholders’ Committee have no legally binding effect for the Company. The Shareholders have agreed in the Shareholders’ Agreement, however, to adhere to and use commercially reasonable best efforts to implement decisions taken by the Shareholders’ Committee to the extent legally permissible.
As of the date of this Prospectus, the Shareholders’ Committee consists of four members and two future independent members, who, for act as advisors of the Shareholders’ Committee without any voting rights. Two of the members are appointed by LetterOne and two by BASF (the "SC Members"). The two independent members are appointed by the Shareholders jointly (the "Independent SC Members"). The Independent SC Members shall be granted full SC Member rights including voting rights at the earlier of six months prior to the targeted day for a potential IPO of the Group or the expiry of a 24-month period following the closing of the Merger. The Shareholders’ Committee has two co-chairmen, one designated by each of BASF and LetterOne, and the presiding chairman alternates on a meeting-by-meeting basis. The current SC Members are also members of the Supervisory Board (Michael Heinz, Dr.
225 Hans-Ulrich Engel, Lord Browne of Madingley and German Khan); the Independent SC Members are Scott Nyquist and Matti Lievonen. As of the date of this Prospectus, all decisions of the Shareholders’ Committee require a unanimous vote.
The Shareholders’ Committee is responsible for any matter referred to it by the Shareholders and in particular for passing decisions on any Reserved Matter (see above).
Shareholders’ Agreement
The Shareholders’ Agreement entered into by LetterOne, BASF SE and the Company governs the ongoing legal relationships between LetterOne and BASF as shareholders of the Company following the implementation of the Merger. The Shareholders’ Agreement provides for, inter alia, the overall corporate governance structure of the Group, a conversion of the Preference Shares held by BASF into Ordinary Shares of the Company on a share by share basis at the earlier of 36 months after the closing of the Merger or the date on which the Company announces an IPO share price, the implementation of a conversion of the Company into the legal form of a stock corporation (Aktiengesellschaft) under German law together with a full corporate governance catalogue including changes to the composition and competencies of the corporate bodies of the Company and the Shareholders’ Committee (including draft articles of association and rules of procedure) as well as, following such conversion, details of a proposed IPO of the Company. The Shareholders’ Agreement further contains provisions relating to the right of each Shareholder to withdraw from joint control over the Company, the strategic roadmap and integration plan for the Group, the business plans and annual budgets, the Group’s main objectives and policy principles, the financing of the Company and dividend policy, share transfers, transfer rights and change of control, potential sanctions being imposed on a company of the Group or a Shareholder and compliance.
Historical Financial Information for the Guarantor and the Group
Financial Information incorporated by Reference
The following historical financial statements are incorporated by reference into this Prospectus and should be read together with it:
• the Dea Historical Financial Information, consisting of the audited consolidated financial statements of Wintershall Dea International GmbH (formerly Wintershall Dea Deutschland AG, formerly DEA Deutsche Erdoel AG) for the fiscal year ended 31 December 2018, prepared in accordance with IFRS, as adopted by the EU and the short fiscal year ended 30 April 2019, prepared in accordance with IFRS, as adopted by the EU;
• the Wintershall Historical Financial Information, consisting of the audited consolidated financial statements of Wintershall Dea GmbH (formerly Wintershall Holding GmbH) for the fiscal year ended 31 December 2018, prepared in accordance with IFRS, as adopted by the EU and the short fiscal year ended 30 April 30 2019, prepared in accordance with IFRS, as adopted by the EU;
• the audited consolidated financial statements of the Company as of and for the short fiscal year ended 31 December 2019 (the "Wintershall Dea Audited Financial Statements"); and
• the unaudited condensed consolidated interim financial statements of the Company as of and for the nine months ended 30 September 2020 (the "Wintershall Dea Interim Financial Statements").
Please see "Documents incorporated by reference" below.
Selected Additional Financial Information
The label "unaudited" is used in the following tables to indicate financial information that has not been taken or derived from the Wintershall Dea Audited Financial Statements but was taken or derived either from the Wintershall Dea Interim Financial Statements or the internal reporting systems, or has been calculated based on figures from the Dea Historical Financial Information, the Wintershall Historical Financial Information and the Wintershall Dea Audited Financial Statements and the Wintershall Dea Interim Financial Statements.
226 The following tables provide for certain aggregated financial information as of and for the periods from 1 January to 31 December 2018 and 2019.
The Like-for-Like Financial Information was prepared by aggregating certain historical financial information of Wintershall Historical Financial Information, Dea Historical Financial Information and Wintershall Dea Audited Financial Statements, as applicable, for the relevant periods.
The Like-for-Like Financial Information were prepared for illustrative information only and have not been audited or reviewed by the auditors of the Company.
Please also note the information set out under "Notice – Like-for-Like Financial Information". above
Certain income statement data of the Group
Three months ended Year ended 31 December 30 September
(1) (2) 2018 2019 2019 2020 (millions €)
(unaudited)
Revenues gas and oil ...... 5,666 4,664 1,056 703 Revenues midstream ...... 237 194 55 - Revenues other ...... 365 401 123 102 Net income from equity-accounted investments: gas and oil ...... 25 29 5 (11) Net income from equity-accounted investments: midstream ...... 104 114 32 49 Other operating income ...... 341 528 35 39 6,738 5,930 1,306 882 Production and operating expenses ...... (2,273) (2,095) (456) (366) Production and similar taxes ...... (227) (177) (42) (29) Depreciation and amortization ...... (1,168) (1,485) (361) (335) Net impairment on assets ...... (351) (1,579) - 8 Cost of sales midstream ...... (54) (29) (8) - Exploration expenses...... (221) (211) (33) (8) General and administration expenses ...... (315) (694) (110) (101) 2,129 (340) 296 51 Financial income ...... 186 167 15 128 Financial expenses ...... (308) (314) (102) (155) (122) (147) (87) (27) Net income/loss (-) before taxes ...... 2,007 (487) 209 24 Income taxes ...... (1,055) (186) (174) 21 Net income/loss (-) ...... 952 (673) 35 45
Notes: (1) Like-for-like presentation, aggregating the income statement of Wintershall as of and for the fiscal year ended 31 December 2018 (in the new reporting structure) and the income statement of Dea as of and for the fiscal year ended 31 December 2018 (in the new reporting structure), excluding any effects from the purchase price allocation. (2) Like-for-like presentation, aggregating the income statement of the Group as of and for the short fiscal year ended 31 December 2019, the income statement of Wintershall as of and for the short fiscal year ended 30 April 2019 (in the new reporting structure) and the income statement of Dea as of and for the short fiscal year ended 30 April 2019 (in the new reporting structure). Effects from the purchase price allocation are included from 1 May 2019 onwards only.
227 Certain Statement of Cash Flows data of the Group
Three months ended Year ended 31 December 30 September
(1) (2) 2018 2019 2019 2020 (millions €)
(unaudited)
Cash flow from operating activities...... 2,796 1,866 466 401 Cash flow from investing activities ...... (1,803) (2,416) (444) (312) Cash flow from financing activities...... (694) 804 136 14 Change in cash and cash equivalents ...... 299 254 158 103
Notes: (1) Like-for-like presentation, aggregating the cash flow statement of Wintershall as of and for the fiscal year ended 31 December 2018 (in the new reporting structure) and the cash flow statement of Dea as of and for the fiscal year ended 31 December 2018 (in the new reporting structure). (2) Like-for-like presentation, aggregating the cash flow statement of the Group as of and for the short fiscal year ended 31 December 2019, the cash flow statement of Wintershall as of and for the short fiscal year ended 30 April 2019 (in the new reporting structure) and the cash flow statement of Dea as of and for the short fiscal year ended 30 April 2019 (in the new reporting structure).
Non-IFRS financial measures - aggregated
The following non-IFRS measures and ratios may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of the operating results of the Group as reported under IFRS. The Group’s management uses these items to measure operating performance and liquidity in presentations to its management board and as a basis for strategic planning and forecasting, as well as monitoring certain aspects of our operating cash flow and liquidity. The Group presents non-IFRS measures and ratios because it believes that they and similar measures are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and liquidity. Non-IFRS measures such as EBITDAX, adjusted net income and free cash flow are not measurements of the Group’s performance or liquidity under IFRS and should not be considered as alternatives to operating profit, profit for the year, or any other performance measures derived in accordance with IFRS or as alternatives to cash flow from operating, investing or financing activities.
As at and for the year As at and for the three ended 31 December months ended 30 September As at and for the 12 months ended 2018 2019 2019 2020 30 September 2020 (millions € except for Net debt / EBITDAX)
(unaudited)
EBITDAX ...... 3,591(1) 2,828(3) 708 397 1,735(7) Adjusted net income ...... 905(1) 718(3) 47 70 92(7) Capex (excluding M&A) ...... 1,570(2) 1,676(4) 400 247 1,465(8) Capex (including M&A) ...... 1,887(2) 2,416(4) 400 247 1,476(8) Free cash flow ...... 1,182(2) 190(4) 22 89 (51)(8) Total debt ...... - 6,592(5) 6,961(6) 6,413 - Net debt ...... - 5,762(5) 5,813(6) 5,857 - Net debt / EBITDAX...... - 2.0 1.8 3.4 -
228 Notes: (1) Like-for-like presentation, aggregating certain line items of the income statement of Wintershall as of and for the fiscal year ended 31 December 2018 (in the new reporting structure) and of the income statement of Dea as of and for the fiscal year ended 31 December 2018 (in the new reporting structure), excluding any effects from the purchase price allocation. (2) Like-for-like presentation, aggregating certain line items of the cash flow statement of Wintershall as of and for the fiscal year ended 31 December 2018 (in the new reporting structure) and of the cash flow statement of Dea as of and for the fiscal year ended 31 December 2018 (in the new reporting structure). (3) Like-for-like presentation, aggregating certain line items of the income statement of Wintershall as of and for the short fiscal year ended 30 April 2019 (in the new reporting structure), of the income statement of Dea as of and for the fiscal year ended 30 April 2019 (in the new reporting structure) and of the income statement of the Group as of and for the short fiscal year ended 31 December 2019. Effects from the purchase price allocation are included from 1 May 2019 onwards only. (4) Like-for-like presentation, aggregating certain line items of the cash flow statement of Wintershall as of and for the fiscal year ended 30 April 2019 (in the new reporting structure), of the cash flow statement of Dea as of and for the fiscal year ended 30 April 2019 (in the new reporting structure) and of the cash flow statement of the Group as of and for the short fiscal year ended 31 December 2019. (5) Actual historical financial information, aggregating certain line items of the balance sheet of the Group as of 31 December 2019. (6) Actual historical financial information, aggregating certain line items of the balance sheet of the Group as of 30 September 2019. (7) Last twelve months presentation, based on certain line items of the income statement of the Group as of and for the three months ended 31 December 2019 and as of and for the nine months ended 30 September 2020. (8) Last twelve months presentation, based on certain line items of the cash flow statement of the Group as of and for the three months ended 31 December 2019 and as of and for the nine months ended 30 September 2020.
EBITDAX
EBITDAX is derived from the income statements, derived from the profit/loss (-) before taxes and adjusted by the following items:
(a) interest income and expenses and income from investments shown as financial income and financial expenses in the income statement but adjusted for interest effects regarding pension provisions and pension assets which are shown separately under (g) "Pension items";
(b) income and expenses attributable to exploration, but excluding depletion/depreciation/amortisation, impairment losses and reversal of impairment losses, interest income and expenses, currency effects and pension items for exploration, since these are adjusted in separate line items;
(c) depletion, depreciation, amortisation and impairment losses as shown in the income statement less reversal of impairment losses;
(d) acquisition, disposal and restructuring costs and further identified items as stated below. This represents all fees, costs and expenses, stamp duty, registration and other taxes incurred by the company in connection with an acquisition or a disposal and material items of an unusual or non-recurring nature as explained for every period (e.g. resulting from restructuring activities);
(e) realised and unrealised foreign exchange gains and losses (including hedging results);
(f) gains over book value or losses on book value arising from the disposal of any fixed assets (other than the sale of trading stock); and
(g) income from pension assets, interest expenses, service costs or other charges attributable to a post- employment benefit scheme ("Pension items").
The following table shows the reconciliation of EBITDAX from income/loss (-) before taxes:
229 As at and for the three months ended As at and for the year As at and for the ended 31 December 30 September 30 June 12 months ended 30 September (1) (3) (8) 2018 2019 2019 2020 2020 2020 (millions €)
(unaudited)
Income/loss (-) before taxes ...... 2,007 (487) 209 24 (1,159) (888) Interest and other financing costs...... (25) 17 38 (20) (24) (89) Exploration expenses...... 220 208 31 8 18 153 Depreciation, amortization and net impairment on assets ...... 1,519 3,063 361 327 1,300 2,680 Acquisition, disposal and restructuring costs and identified items ...... (238)(2) (61)(4) 18(5) 28(6) 92(7) (282)(9) Realised and unrealised gains/losses from foreign currency valuation and financial derivatives ...... 147 108 53 22 19 141 Gains (-) / losses attributable to the disposal of fixed assets ...... (70) (10) (7) - 1 24 Pension items ...... 31 (10) 5 8 7 (3) EBITDAX ...... 3,591 2,828 708 397 254 1,735
Notes: (1) Like-for-like presentation, aggregating certain line items of the income statement of Wintershall as of and for the fiscal year ended 31 December 2018 (in the new reporting structure) and of the income statement of Dea as of and for the fiscal year ended 31 December 2018 (in the new reporting structure), excluding any effects from the purchase price allocation. (2) Comprises the following: restructuring cost €9 million, integration cost €23 million, loss from deconsolidation of a subsidiary €10 million, income from an insurance claim €-280 million. (3) Like-for-like presentation, aggregating certain line items of the income statement of Wintershall as of and for the fiscal year ended 30 April 2019 (in the new reporting structure), of the income statement of Dea as of and for the fiscal year ended 30 April 2019 (in the new reporting structure) and of the income statement of the Group as of and for the short fiscal year ended 31 December 2019. Effects from the purchase price allocation are included from 1 May 2019 onwards only. (4) Comprises the following: restructuring cost €273 million, change-of-control fees € 40 million, acquisition cost €8 million, integration cost €45 million, gain from deconsolidation of two subsidiaries €-42 million, the change of consolidation method for WIGA group €-385 million. (5) Comprises the following: integration costs €12 million, acquisition cost €2 million and net loss from deconsolidated subsidiaries and divestments €4 million. (6) Comprises the following: integration costs of €12 million and €16 million impairment losses on financial receivables (7) Comprises the following: restructuring cost €2 million, integration costs €15 million and €75 million impairment losses on financial receivables (8) Last twelve months presentation, based on certain line items of the income statement of the Group as of and for the three months ended 31 December 2019 and as of and for the nine months ended 30 September 2020. (9) Comprises the following: restructuring cost €-31 million, integration cost €48 million, acquisition cost €3 million, net gain from deconsolidation of a subsidiary €-8 million, impairment losses on financial receivables €91 million, the change of consolidation method for WIGA group €-385 million.
230 The following table shows the composition of the Group’s EBITDAX for the periods indicated:
As at and for the three months ended As at and for the year As at and for the ended 31 December 30 September 30 June 12 months ended 30 September (1) (2) (3) 2018 2019 2019 2020 2020 2020 (millions €)
(unaudited)
Northern Europe ...... 2,355 1,671 383 257 118 1,103 Russia ...... 419 463 86 9 37 250 LATAM ...... 397 320 97 64 43 222 MENA ...... 235 270 118 64 27 140 Midstream ...... 282 275 78 50 58 191 Other ...... (98) (170) (54) (47) (29) (171) Total EBITDAX ...... 3,591 2,828 708 397 254 1,735
Notes: (1) Like-for-like presentation, aggregating certain line items of the income statement of Wintershall as of and for the fiscal year ended 31 December 2018 (in the new reporting structure) and of the income statement of Dea as of and for the fiscal year ended 31 December 2018 (in the new reporting structure), excluding any effects from the purchase price allocation. (2) Like-for-like presentation, aggregating certain line items of the income statement of Wintershall as of and for the fiscal year ended 30 April 2019 (in the new reporting structure), of the income statement of Dea as of and for the fiscal year ended 30 April 2019 (in the new reporting structure) and of the income statement of the Group as of and for the short fiscal year ended 31 December 2019. Effects from the purchase price allocation are included from 1 May 2019 onwards only (3) Last twelve months presentation, based on certain line items of the income statement of the Group as of and for the three months ended 31 December 2019 and as of and for the nine months ended 30 September 2020.
Adjusted Net Income
Adjusted net income is net income/loss (-) adjusted for special items like impairments, expenses related to the Merger such as restructuring, change-of-control fees and integration and gain from the deconsolidation of WIGA group.
The following table shows the reconciliation of adjusted net income from net income/loss (-):
As at and for the three months ended As at and for the year As at and for the ended 31 December 30 September 30 June 12 months ended 30 September (1) (2) (3) 2018 2019 2019 2020 2020 2020 (millions €)
(unaudited)
Net income/loss (-) 952 (673) 35 45 (703) (601) Restructuring ...... 9 273 - - 2 (31) Net impairments on assets ...... 351 1,579 - (8) 952 1,242 Impairments on financial receivables .. - - - 16 75 91 Tax impact from impairments(4) ...... (150) (161) - 5 (251) (272) Change of control payments ...... - 40 - - - Gain deconsolidation WIGA ...... - (385) - - (385) Gain from insurance claim ...... (280) - - - - Integration costs ...... 23 45 12 12 15 48 Adjusted net income ...... 905 718 47 70 90 92
231 Notes: (1) Like-for-like presentation, aggregating certain line items of the income statement of Wintershall as of and for the fiscal year ended 31 December 2018 (in the new reporting structure) and of the income statement of Dea as of and for the fiscal year ended 31 December 2018 (in the new reporting structure), excluding any effects from the purchase price allocation. (2) Like-for-like presentation, aggregating certain line items of the income statement of Wintershall as of and for the fiscal year ended 30 April 2019 (in the new reporting structure), of the income statement of Dea as of and for the fiscal year ended 30 April 2019 (in the new reporting structure) and of the income statement of the Group as of and for the short fiscal year ended 31 December 2019. Effects from the purchase price allocation are included from 1 May 2019 onwards only. (3) Last twelve months presentation, based on certain line items of the income statement of the Group as of and for the three months ended 31 December 2019 and as of and for the nine months ended 30 September 2020. (4) Tax effect on impairment adjustment calculated by applying country-specific tax rates.
Capex (excluding M&A)
Capex (excluding M&A) for Wintershall consists of payments for property, plant and equipment and payments for intangible assets as shown in the consolidated cash flow statements of Wintershall.
Capex (excluding M&A) for Dea consists of cash outflows for additions to intangible assets, property, plant and equipment and investment property as shown in the consolidated cash flow statements of Dea.
Capex (excluding M&A) for the Group consists of payments for intangible assets, property, plant and equipment and investment property as shown in the consolidated statement of cash flows of the Group.
The following table sets out the calculation of Capex (excluding M&A) for the Group for the periods indicated:
Three months ended As at and for the Year ended 31 December 30 September 30 June 12 months ended 30 September (1) (2) (3) 2018 2019 2019 2020 2020 2020 (millions €)
(unaudited)
Payments for intangible assets, property, plant and equipment and investment property 1,570 1,676 400 247 367 1,465 Capex (excluding M&A) 1,570 1,676 400 247 367 1,465
Notes: (1) Like-for-like presentation, aggregating certain line items of the cash flow statement of Wintershall as of and for the fiscal year ended 31 December 2018 (in the new reporting structure) and of the cash flow statement of Dea as of and for the fiscal year ended 31 December 2018 (in the new reporting structure). (2) Like-for-like presentation, aggregating certain line items of the cash flow statement of Wintershall as of and for the fiscal year ended 30 April 2019 (in the new reporting structure), of the cash flow statement of Dea as of and for the fiscal year ended 30 April 2019 (in the new reporting structure) and of the cash flow statement of the Group as of and for the short fiscal year ended 31 December 2019. (3) Last twelve months presentation, based on certain line items of the cash flow statement of the Group as of and for the three months ended 31 December 2019 and as of and for the nine months ended 30 September 2020.
232 Capex (including M&A)
Capex (including M&A) for Wintershall consists of payments for property, plant and equipment, payments for intangible assets and payments for acquisitions as shown in the consolidated cash flow statements of Wintershall.
Capex (including M&A) for Dea consists of cash outflows for additions to intangible assets, property, plant and equipment and investment property and cash outflows for acquisitions as shown in the consolidated cash flow statements of Dea.
Capex (including M&A) for the Group consists of payments for intangible assets, property, plant and equipment and investment property and payments for acquisitions as shown in the Consolidated statement of cash flows of the Group.
The following table sets out the calculation of Capex (including M&A) for the Group for the periods indicated:
Three months ended As at and for the 12 months ended Year ended 31 December 30 September 30 June 30 September (3) (1) (2) 2020 2018 2019 2019 2020 2020 (millions €)
(unaudited)
Payments for intangible assets, property, plant and equipment and investment property 1,570 1,676 400 247 367 1,465 Payments for acquisitions . 317 740 - - - 11 Capex (including M&A) 1,887 2,416 400 247 367 1,476
Notes: (1) Like-for-like presentation, aggregating certain line items of the cash flow statement of Wintershall as of and for the fiscal year ended 31 December 2018 (in the new reporting structure) and of the cash flow statement of Dea as of and for the fiscal year ended 31 December 2018 (in the new reporting structure). (2) Like-for-like presentation, aggregating certain line items of the cash flow statement of Wintershall as of and for the fiscal year ended 30 April 2019 (in the new reporting structure), of the cash flow statement of Dea as of and for the fiscal year ended 30 April 2019 (in the new reporting structure) and of the cash flow statement of the Group as of and for the short fiscal year ended 31 December 2019. (3) Last twelve months presentation, based on certain line items of the cash flow statement of the Group as of and for the three months ended 31 December 2019 and as of and for the nine months ended 30 September 2020.
Free Cash Flow
Free cash flow for Wintershall comprises the cash flow from operating activities and the cash flow from investing activities but excludes payment for acquisitions as shown in the consolidated cash flow statement of Wintershall.
Free cash flow for Dea comprises the cash flow from operating activities and the cash flow from investment activities but excludes cash outflows for acquisitions as stated in the consolidated cash flow statement of Dea; the free cash flow 2018 is net of cash inflows earmarked for acquisitions that were made as a repayment of financial receivables from related parties as explained in the consolidated financial statements as of and for the year ended 31 December 2018.
Free cash flow for the Group comprises the cash flow from operating activities and the cash flow from investing activities but excludes payments for acquisitions as shown in the consolidated statement of cash flows of the Group.
The following table sets out the calculation of Free Cash Flow for the periods indicated (on a like-for-like basis where applicable):
233 Three months ended As at and for the Year ended 31 December 30 September 30 June 12 months ended 30 September (1) (2) (4) 2018 2019 2019 2020 2020 2020 (millions €)
(unaudited)
Cash flow from operating activities ...... 2,796 1,866 466 401 99 1,327 Cash flow from investing activities ...... (1,803) (2,416) (444) (312) (393) (1,389) less Payments for acquisitions(3) ...... 189 740 - - - 11 Free cash flow ...... 1,182 190 22 89 (294) (51)
Notes: (1) Like-for-like presentation, aggregating certain line items of the cash flow statement of Wintershall as of and for the fiscal year ended 31 December 2018 (in the new reporting structure) and of the cash flow statement of Dea as of and for the fiscal year ended 31 December 2018 (in the new reporting structure). (2) Like-for-like presentation, aggregating certain line items of the cash flow statement of Wintershall as of and for the fiscal year ended 30 April 2019 (in the new reporting structure), of the cash flow statement of Dea as of and for the fiscal year ended 30 April 2019 (in the new reporting structure) and of the cash flow statement of the Group as of and for the short fiscal year ended 31 December 2019. (3) In 2018 including a repayment of financial receivables from shareholder earmarked for acquisitions. (4) Last twelve months presentation, based on certain line items of the cash flow statement of the Group as of and for the three months ended 31 December 2019 and as of and for the nine months ended 30 September 2020.
Total Debt
Total debt consists of debt to banks, bonds, financial liabilities from cash pooling as well as leasing liabilities (which comprise capitalised rights of use from leases under IFRS 16) of the Group. Leasing liabilities are included only for periods that start at or after 1 January 2019 in line with the first-time application of IFRS 16. Total debt excludes shareholder loans and loans granted from other shareholders outside the group to consolidated subsidiaries.
The following table sets out the calculation of Total Debt for the Group for the dates indicated:
31 December 30 September
2018 2019 2019 2020 (millions €)
(unaudited, unless otherwise stated)
Debt to banks ...... - 1,889(1) 2,483 1,859 Bonds ...... - 3,995(1) 3,984 3,986 Financial liabilities from cash pooling ...... - 485(1) 343 432 Lease liabilities...... - 223(1) 151 136 Total Debt ...... - 6,592 6,961 6,413
Notes: (1) Audited.
234 Net Debt
Net debt for the Group consists of Total debt less cash and cash equivalents and less financial receivables from cash pooling.
The following table sets out the calculation of Net Debt for the Group for the dates indicated:
31 December 30 September
2018 2019 2019 2020 (millions €)
(unaudited, unless otherwise stated)
Total Debt ...... - 6,592 6,961 6,413 Less financial receivables from cash pooling - (16)(1) (16) (19) Less cash and cash equivalents...... - (814)(1) (1,132) (537) Net Debt ...... - 5,762 5,813 5,857
Notes: (1) Audited.
Other aggregated operational data (1)
Year ended 31 December
2018 2019 (unaudited)
Production (mboe/d) ...... 566 617 liquids ...... 174 172 gas ...... 392 445 Production costs ($/boe) ...... 5.4 4.3 Average realized $/boe liquids ...... 50 40 Average realized $/mscf gas ...... 3.1 2.3
Notes: (1) Excluding Libya onshore production
Production (mboe/d)(1)
Northern Thereof gas Europe Russia MENA LATAM Total (in %) Full year 2018(2) ...... 203 252 37 74 566 69% First quarter 2019(2) ...... 205 306 41 74 626 72% Second quarter 2019(2) ...... 210 280 48 76 614 72% Third quarter 2019 ...... 186 263 59 80 588 71% Fourth quarter 2019 ...... 200 307 55 75 637 73% Full year 2019 ...... 201 289 51 76 617 72% First quarter 2020 ...... 207 300 49 70 626 73% Second quarter 2020 ...... 199 287 46 74 606 73% Third quarter 2020 ...... 196 278 55 77 606 72%
235 Notes: (1) On a working interest basis, including proportional production from at equity accounted company, excluding Libya onshore production. (2) Like-for-like presentation.
Commodity Hedging (as of 30 September 2020)
2020 (Oct-Dec) 2021 2022 Total (unaudited) Total Total Volumes, mboe/d ...... 79.0 56.7 5.8 Mark-to Market, €m(1) ...... -3 30 29 55 Oil Volume, mbbl/d...... 23.0 9.1 5.8 9.2 Price, $/bbl ...... 50.1 65.5 63.3 60.6 Gas Volume, mmscf/d ...... 325 276 - 286 Price, $/mcf ...... 3.5 4.1 - 4.0 Notes: (1) Comprises the following: derivate assets of € 104 million and derivative liabilities of € 49 million.
Significant Changes in Financial Performance
There has been no significant change in the financial performance of the Group since 30 September 2020.
Trend Information
There has been no material adverse change in the prospects of the Guarantor since 30 September 2020.
Recent Events
The Guarantor is currently conducting its internal reserves and resources reporting as of 31 December 2020; in parallel, reserves and contingent resources are independently evaluated by the independent evaluator D&M with the same effective date. At the time of the publication of this Prospectus, the Guarantor does on a Group level not anticipate any material decline (>10%) in its internally reported reserves and resources as of 31 December 2020 when compared to its reserves and resources as of 31 December 2019, and expects the same to be the case with respect to the result of the independent evaluation by D&M. The reserves are expected to decline in line with the volumes produced during the year 2020 (approximately 613 mboe/d for the period 1 January 2020 to 30 September 2020) and the changes with respect to technical and economic evaluation of assets, whereof significant parts are already comprised in impairment charge taken during the second quarter 2020 (related to lower commodity price assumptions and reduced reserve expectations in the West Nile Delta development in Egypt).
Other than described above, the Guarantor is not aware of any recent events particular to the Guarantor or the Group (i.e. occurring after the most recent published unaudited interim consolidated financial statements of the Guarantor as of 30 September 2020) that are to a material extent relevant to the evaluation of the Guarantor’s solvency.
236 TAXATION
The tax legislation of the state of residence of a prospective holder of Notes (the "Noteholders" and each a "Noteholder"), or of a jurisdiction where a prospective Noteholder is subject to taxation, and the tax legislation of the Issuer’s and the Guarantor’s country of incorporation may have an impact on the income received from the Notes.
The following is a general overview of certain tax considerations relating to the purchasing, holding and disposing of Notes. It does not purport to be a complete analysis of all tax considerations relating to the Notes. In particular, this discussion does not consider any specific facts or circumstances that may apply to a particular Noteholder. The discussions that follow for each jurisdiction are based upon the applicable laws in force and their interpretation on the date of this Prospectus. These tax laws and interpretations are subject to change that may occur after such date, even with retroactive effect.
The information contained in this section is limited to taxation issues and prospective investors should not apply any information set out below to other areas, including (but not limited to) the legality of transactions involving the Notes.
Prospective Noteholders should consult their own tax advisers as to the particular tax consequences of subscribing, purchasing, holding and disposing the Notes, including the application and effect of any federal, state or local taxes, under the tax laws of each country of which they are residents or citizens.
Responsibility of the Issuer for the withholding of taxes at source:
The Issuer does not assume any responsibility for the withholding of taxes at source.
Taxation in the Grand Duchy of Luxembourg
The following information 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 to certain 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, or to any other concepts, refers to Luxembourg tax law and/or concepts only.
Withholding Tax
Under Luxembourg tax law in effect as of the date of this Prospectus and subject to the exception below, there is no Luxembourg withholding tax on payments of interest (including accrued but unpaid interest) or repayments of principal.
In accordance with the law of 23 December 2005, as amended, interest payments made by Luxembourg paying agents to individual beneficial owners, which are residents of Luxembourg, are subject to a 20 per cent. withholding tax. Responsibility for withholding such tax will be assumed by the Luxembourg paying agent. Such withholding tax will be in full discharge of income tax if the beneficial owner is an individual acting in the course of the management of his/her private wealth.
Income Taxation
Non-resident Noteholder
A non-resident Noteholder, not having a permanent establishment or permanent representative in Luxembourg to which or to whom such Notes are attributable, is not subject to Luxembourg income tax on interest accrued or received, redemption premiums or issue discounts, or any other income under the Notes. A gain realised by such non- resident Noteholder on the sale or disposal, in any form whatsoever, of the Notes is further not subject to Luxembourg income tax.
A non-resident Noteholder acting in the course of the management of professional or business undertaking, who has a permanent establishment or permanent representative in Luxembourg to which or to whom such Notes are
237 attributable, is subject to Luxembourg income tax on interest accrued or received, redemption premiums or issue discounts, or other income under the Notes, and on any gains realised upon the sale or disposal, in any form whatsoever of the Notes.
Resident Noteholder
Noteholder who/which are resident of Luxembourg will not be liable for any Luxembourg income tax on repayment of principal.
Luxembourg resident corporate Noteholder
A corporate Noteholder must include any interest accrued or received, any redemption premium or issue discount, as well as any gain realized on the sale or disposal, in any form whatsoever, of the Notes, in its taxable income for Luxembourg income tax assessment purposes.
Corporate Noteholder that are governed by the law of 11 May 2007 on family estate management companies, as amended, or by the law of 17 December 2010 on undertakings for collective investment, as amended, or by the law of 13 February 2007 on specialised investment funds as amended, or by the law of 23 July 2016 on reserved alternative investment funds (provided it is not foreseen in the incorporation documents that (i) the exclusive object is the investment in risk capital and that (ii) Article 48 of the aforementioned law of 23 July 2016 apply), are tax exempt entities in Luxembourg, and are thus not subject to any Luxembourg tax (i.e. corporate income tax, municipal business tax and net wealth tax) other than the annual subscription tax calculated on their (paid up) share capital (and share premium) or net asset value.
Luxembourg resident individual Noteholder
An individual Noteholder, who acts in the course of the management of his private wealth and who is a resident of Luxembourg for tax purposes, has further to include the portion of the gain corresponding to accrued but unpaid interest in respect of the Noteholder in his taxable income, except if (i) withholding tax has been levied on such payments in accordance with the law of 23 December 2005, or (ii) the individual Noteholder has opted for the application of a 20 per cent. withholding tax in full discharge of income tax in accordance with the law of 23 December 2005, which applies if a payment of interest has been made or ascribed by a paying agent established outside Luxembourg in an EU Member State, or in a State of the European Economic Area other than an EU Member state.
The above 20 per cent. withholding tax represents the final tax liability on interest received for the Luxembourg resident individuals receiving the interest payments in the course of their private wealth and can be refunded in consideration of foreign withholding tax, based on double tax treaties concluded by Luxembourg.
Under Luxembourg domestic tax law, gains realised by an individual Noteholder, who acts in the course of the management of his private wealth and who is a resident of Luxembourg for tax purposes, on the sale or disposal, in any form whatsoever, of Notes are not subject to Luxembourg income tax, provided this sale or disposal took place six months after the acquisition of the Notes, or that the sale or disposal does not precedes the acquisition of the Notes.
An individual Noteholder acting in the course of the management of professional or business undertaking must include any income under the Notes in its taxable basis. In that event, such 20 per cent. withholding tax levied will be credited against its final income tax liability.
Net Wealth Taxation
A corporate Noteholder, whether it is a resident of Luxembourg for tax purposes or, if not, it maintains a permanent establishment or a permanent representative in Luxembourg to which such Notes are attributable, is subject to Luxembourg net wealth tax on such Notes, except if the Noteholder is governed by the law of 11 May 2007 on family estate management companies, as amended, or by the law of 17 December 2010 on undertakings for collective investment, as amended, or by the law of 13 February 2007 on specialised investment funds, or is a securitisation company governed by the law of March 22, 2004 on securitisation, as amended, or is a capital company governed by the law of 15 June 2004 on venture capital vehicles, as amended or is a reserved alternative investment fund
238 governed by the law of 23 July 2016. However, a securitisation company subject to the amended law of 22 March 2004 and a company subject to the amended law of 15 June 2004 on venture capital vehicles are, as from 1 January 2016, subject to a minimum net wealth tax, as well as reserved alternative investment funds subject to the law of 23 July 2016, provided it is foreseen in the incorporation documents that (i) the exclusive object is the investment in risk capital and that (ii) Article 48 of the aforementioned law of 23 July 2016 applies.
An individual Noteholder, whether he/she is resident of Luxembourg or not, is not subject to Luxembourg net wealth tax on the Notes.
Inheritance and Gift Tax
Where a Noteholder is a resident of Luxembourg for tax purposes at the time of his/her death, the Notes are included in his/her taxable estate for inheritance tax assessment purposes.
Gift tax may be due on a gift or donation of Notes if embodied in a Luxembourg deed passed in front of a Luxembourg notary or recorded in Luxembourg.
Other Taxes
In principle, neither the issuance nor the transfer, repurchase or redemption of Notes will give rise to any Luxembourg registration tax or similar taxes.
However, a fixed or ad valorem registration duty may be due in case the Notes must be produced before an official Luxembourg authority, or in the case of a registration of the Notes on a voluntary basis, or if the Notes are appended to a document that requires mandatory registration.
Taxation in the Federal Republic of Germany
The following is a general discussion of certain German tax consequences of the acquisition, holding and disposal of the Notes. It does not purport to be a comprehensive description of all German tax considerations that may be relevant to a decision to purchase Notes, and, in particular, does not consider any specific facts or circumstances that may apply to a particular purchaser. This discussion of the tax consequences of an investment in the Notes is based on the tax laws of Germany in force and as applied on the date of this Prospectus, which are subject to change, possibly with retroactive or retrospective effect.
Tax resident Noteholders of the Notes
The section "Tax resident Noteholders of the Notes" refers to persons who are tax residents of Germany (i.e. persons whose residence, habitual abode, statutory seat, or place of effective management is located in Germany).
Withholding tax on interest payments and capital gains
Interest payments received by an individual Noteholder of the Notes will be subject to German withholding tax if the Notes are kept or administrated in a custodial account with a German branch of a German or non-German credit institution (Kreditinstitut) or financial services institution (Finanzdienstleistungsinstitut), a German securities trading company (Wertpapierhandelsbank) or a German securities trading bank (Wertpapiersammelbank) (each a "Disbursing Agent", auszahlende Stelle). The flat income tax rate is 25 per cent. (plus 5.5 per cent. solidarity surcharge thereon, the total withholding being 26.375 per cent.). An electronic information system for withholding of church tax will apply to individuals subject to church tax in relation to investment income, with the effect that church tax will be collected by the Disbursing Agent by way of withholding unless the investor has filed a blocking notice (Sperrvermerk) with the German Federal Central Tax Office (Bundeszentralamt für Steuern) in which case the investor will be assessed to church tax.
The same treatment applies to capital gains (i.e. the difference between the proceeds from the disposal, redemption, repayment or assignment after deduction of expenses directly related to the disposal, redemption, repayment or assignment and the cost of acquisition) derived by an individual Noteholder provided the Notes have been held in a custodial account with a Disbursing Agent since the time of their acquisition. If Notes held or administrated in the same custodial account have been acquired at different points in time, the Notes first acquired will be deemed to have been sold first for the purposes of determining the capital gains. Where Notes are acquired and/or sold or redeemed
239 in a currency other than Euro, the sales/redemption price and the acquisition costs have to be converted into Euro on the basis of the foreign exchange rates prevailing on the sale or redemption date and the acquisition date respectively. If interest coupons or interest claims are disposed of separately (i.e. without the Notes), the proceeds from the disposition are subject to withholding tax. The same applies to proceeds from the payment of interest coupons or interest claims if the Notes have been disposed of separately.
To the extent the Notes have not been kept in a custodial account with a Disbursing Agent since the time of their acquisition, upon the disposal, redemption, repayment or assignment withholding tax applies at a rate of 26.375 per cent. (including solidarity surcharge, plus church tax, if applicable) on 30 per cent. of the disposal proceeds (plus interest accrued on the Notes ("Accrued Interest", Stückzinsen, if any), unless the investor or the previous depository bank was able and allowed to prove evidence for the investor's actual acquisition costs to the Disbursing Agent.
In computing any German tax to be withheld, the Disbursing Agent may generally deduct from the basis of the withholding tax negative investment income realised by the individual Noteholder of the Notes via the Disbursing Agent (e.g. losses from the sale of other securities with the exception of shares). The Disbursing Agent may also deduct Accrued Interest on the Notes or other securities paid separately upon the acquisition of the respective security via the Disbursing Agent. In addition, subject to certain requirements and restrictions the Disbursing Agent may credit foreign withholding taxes levied on investment income in a given year regarding securities held by the individual Noteholder in the custodial account with the Disbursing Agent.
Individual Noteholders may be entitled to an annual allowance (Sparer-Pauschbetrag) of €801 (€1,602 for jointly assessed individual Noteholders) for all investment income received in a given year. Upon the individual Noteholder filing an exemption certificate (Freistellungsauftrag) with the Disbursing Agent, the Disbursing Agent will take the allowance into account when computing the amount of tax to be withheld. No withholding tax will be deducted if the Noteholder of the Notes has submitted to the Disbursing Agent a certificate of non-assessment (Nichtveranlagungsbescheinigung) issued by the competent local tax office.
German withholding tax will not apply to gains from the disposal, redemption, repayment or assignment of Notes held by a corporation as Noteholder while ongoing payments, such as interest payments, are subject to withholding tax (irrespective of any deductions of foreign tax and capital losses incurred). With regard to gains from the disposal, repayment or assignment of Notes held by an individual Noteholder, a business partnership or through the permanent establishment of a non-resident taxpayer, the same may apply upon application where the Notes form part of a trade or business, subject to further requirements being met.
The Issuer is not obliged under German law to withhold any withholding tax (Kapitalertragsteuer) on interest payments and on capital gains upon the sale or redemption of the Notes.
Taxation of current income and capital gains
The income tax liability of an individual Noteholder deriving investment income from the Notes is, in principle, settled by the tax withheld. To the extent withholding tax has not been levied, such as in the case of Notes kept in custody abroad or if no Disbursing Agent is involved in the payment process, the individual Noteholder must report his or her income and capital gains derived from the Notes on his or her tax return and then will also be taxed at a rate of 25 per cent. (plus solidarity surcharge and church tax thereon, where applicable). If the withholding tax on a disposal, redemption, repayment or assignment has been calculated from 30 per cent. of the disposal proceeds (rather than from the actual gain), an individual Noteholder may and in case the actual gain is higher than 30 per cent. of the disposal proceeds must also apply for an assessment on the basis of his or her actual acquisition costs. Further, an individual Noteholder may request that all investment income of a given year is taxed at his or her lower individual tax rate based upon an assessment to tax with any amounts over withheld being refunded. In each case, the deduction of expenses (other than transaction costs) on an itemized basis is not permitted.
The coalition agreement between the German Christian Democratic Party, the German Christian Social Union and the German Social Democratic Party for the formation of the current German federal government provides that the flat tax regime shall be partially abolished for certain capital investment income, including interest income. That means that income received by Noteholders holding the Notes as private assets, depending on the outcome of the legislative process, may be taxed at individual progressive income tax rates of up to 45 per cent. in the future (plus a
240 5.5 per cent. solidarity surcharge thereon and church tax, if applicable to the individual Noteholder), whereby in this case expenses should be deductible such that the individual will be taxed on its net interest/ net capital income.
Due to the recent amendment of the Solidarity Surcharge Act, the solidarity surcharge will be levied for wage tax and income tax purposes from 2021 onwards if the individual income tax of the investor exceeds the threshold of €16,956 (€33,912 for jointly assessed spouses or registered life partners). Pursuant to the amended law, the solidarity surcharge shall remain in place for purposes of the withholding tax, the flat tax regime and the corporate income tax.
Capital losses from the disposal, redemption, repayment or assignment of the Notes held as private assets should generally be tax-recognised irrespective of the holding period of the Notes. The losses may, however, not be used to offset other income like employment or business income but may only be offset against investment income subject to certain limitations. Losses not utilised in one year may be carried forward into subsequent years but may not be carried back into preceding years. However, if the losses result from the full or partial non-recoverability of the repayment claim under the Notes including a default of the Issuer or a (voluntary) waiver, such losses together with other losses of such kind of the same year and loss-carry forwards of previous years can only be offset up to an amount of €20,000 ("Limitation on Loss Deduction"). Any exceeding loss amount can be carried forward and offset against future savings income, but again subject to the €20,000 limitation. Pursuant to the legislative reasoning, a non-recoverability shall also be assumed if, based on the overall assessment of the facts and circumstances, it becomes apparent that the Issuer will not redeem the Notes in full, e.g. because the solvency risk has already materialised. Given that losses, which are subject to the Limitation on Loss Deduction, will not be recognised by the German Disbursing Agent (as defined above) holding the Notes in custody for withholding tax purposes, investors suffering losses which are subject to the Limitation on Loss Deduction are required to declare such losses in their income tax return within the limitations set by the Limitation on Loss Deduction described above.
Where Notes form part of a trade or business the withholding tax, if any, will not settle the (corporate) income tax liability. Where Notes form part of a trade or business, interest (accrued) and gains from the disposal, redemption, repayment or assignment of Notes must be taken into account as income. The respective Noteholder will have to report income and related (business) expenses on the tax return and the balance will be taxed at the Noteholder's applicable tax rate. Withholding tax levied, if any, will be credited against the (corporate) income tax of the Noteholder. Where Notes form part of a German trade or business the current income and gains from the disposal, redemption, repayment or assignment of the Notes may also be subject to German trade tax.
Non-resident Noteholders of the Notes
Interest, including Accrued Interest, and capital gains are not subject to German taxation, unless (i) the Notes form part of the business property of a permanent establishment, including a permanent representative, or a fixed base maintained in Germany by the Noteholder or (ii) the income otherwise constitutes German-source income. In cases (i) and (ii) a tax regime similar to that explained above under "Tax resident Noteholders of the Notes" applies.
Non-residents of Germany are, in general, exempt from German withholding tax on interest and the solidarity surcharge thereon. However, where the interest is subject to German taxation as set forth in the preceding paragraph and the Notes are held in a custodial account with a Disbursing Agent, withholding tax may be levied under certain circumstances. The withholding tax may be fully or partially refunded based on an assessment to tax or under an applicable tax treaty.
Substitution of the Issuer
If the Issuer exercises the right to substitute the debtor of the Notes, the substitution might, for German tax purposes, be treated as an exchange of the Notes for new notes issued by the Substitute Debtor and subject to similar taxation rules like the Notes. In particular, such a substitution could result in the recognition of a taxable gain or loss for any Noteholder of a Note.
Inheritance and gift tax
The transfer of the Notes to another person by way of gift or inheritance may be subject to German gift or inheritance tax, respectively, if inter alia
241 (i) the testator, the donor, the heir, the donee or any other acquirer had his residence, habitual abode or, in case of a corporation, association (Personenvereinigung) or estate (Vermögensmasse), has its seat or place of management in Germany at the time of the transfer of property,
(ii) except as provided under (i), the testator’s or donor’s Notes belong to business assets attributable to a permanent establishment or a permanent representative in Germany.
Special regulations may apply to certain German expatriates.
Other taxes
No stamp, issue, value added, capital transfer or registration taxes or such duties will be payable in Germany in connection with the issuance, delivery or execution as well as the purchase, sale or other disposal of the Notes. However, under certain circumstances entrepreneurs may opt in for German value added tax with regard to the sale of the Notes to other entrepreneurs which would otherwise be tax exempt. As of the date of this Prospectus, no net assets tax is levied in Germany.
Taxation in Kingdom of the Netherlands
The following summary outlines the principal Netherlands tax consequences of the acquisition, holding, settlement, redemption and disposal of the Notes, but does not purport to be a comprehensive description of all Netherlands tax considerations that may be relevant. For purposes of Netherlands tax law, a holder of Notes may include an individual or entity who does not have the legal title of these Notes, but to whom nevertheless the Notes or the income thereof is attributed based on specific statutory provisions or on the basis of such individual or entity having an interest in the Notes or the income thereof. This summary is intended as general information only and each prospective investor should consult a professional tax adviser with respect to the tax consequences of the acquisition, holding, settlement, redemption and disposal of the Notes.
This summary is based on tax legislation, published case law, treaties, regulations and published policy, in each case as in force as of the date of this Prospectus, and does not take into account any developments or amendments thereof after that date whether or not such developments or amendments have retroactive effect.
This summary does not address the Netherlands corporate and individual income tax consequences for:
(i) investment institutions (fiscale beleggingsinstellingen);
(ii) pension funds, exempt investment institutions (vrijgestelde beleggingsinstellingen) or other Netherlands tax resident entities that are not subject to or exempt from Netherlands corporate income tax;
(iii) holders of Notes holding a substantial interest (aanmerkelijk belang) or deemed substantial interest (fictief aanmerkelijk belang) in the Issuer and holders of Notes of whom a certain related person holds a substantial interest in the Issuer. Generally speaking, a substantial interest in the Issuer arises if a person, alone or, where such person is an individual, together with his or her partner (statutorily defined term), directly or indirectly, holds or is deemed to hold (i) an interest of 5% or more of the total issued capital of the Issuer or 5% or more of the issued capital of a certain class of shares of the Issuer, (ii) rights to acquire, directly or indirectly, such interest or (iii) certain profit-sharing rights in the Issuer;
(iv) persons to whom the Notes and the income from the Notes are attributed based on the separated private assets (afgezonderd particulier vermogen) provisions of the Netherlands Income Tax Act 2001 (Wet inkomstenbelasting 2001);
(v) entities which are a resident of Aruba, Curacao or Sint Maarten that have an enterprise which is carried on through a permanent establishment or a permanent representative on Bonaire, Sint Eustatius or Saba and the Notes are attributable to such permanent establishment or permanent representative; and
(vi) individuals to whom Notes or the income there from are attributable to employment activities which are taxed as employment income in the Netherlands.
242 Where this summary refers to the Netherlands, such reference is restricted to the part of the Kingdom of the Netherlands that is situated in Europe and the legislation applicable in that part of the Kingdom.
Withholding Tax
Except as described below, all payments (including payments upon redemption or repurchase of Notes) made by the Issuer under the Notes may be made free of withholding or deduction for any taxes of whatsoever nature imposed, levied, withheld or assessed by the Netherlands or any political subdivision or taxing authority thereof or therein, provided that the Notes do not in fact function as equity of the Issuer within the meaning of article 10, paragraph 1, under d of the Netherlands Corporate Income Tax Act 1969 (Wet op de vennootschapsbelasting 1969).
Dutch withholding tax may apply on certain (deemed) payments of interest made to an affiliated (gelieerde) entity of the Issuer if such entity (i) is considered to be resident of a jurisdiction that is listed in the yearly updated Dutch Regulation on low-taxing states and non-cooperative jursidictions for tax purposes (Regeling laagbelastende staten en niet-coöperatieve rechtsgebieden voor belastingdoeleinden), or (ii) has a permanent establishment located in such jurisdiction to which the interest is attributable, or (iii) is entitled to the interest payable for the main purpose or one of the main purposes to avoid taxation of another person, or (iv) is a hybrid entity, or (v) is not resident in any jurisdiction, all within the meaning of the Dutch Withholding Tax Act 2021 (Wet bronbelasting 2021).
Corporate and Individual Income Tax
Residents of the Netherlands
If a holder of Notes is a resident of the Netherlands or deemed to be a resident of the Netherlands for Netherlands corporate income tax purposes and is fully subject to Netherlands corporate income tax or is only subject to Netherlands corporate income tax in respect of an enterprise to which the Notes are attributable, income derived from the Notes and gains realised upon the redemption, settlement or disposal of the Notes are generally taxable in the Netherlands (at up to a maximum rate of 25%) under the Netherlands Corporate Income Tax Act 1969 (Wet vennootschapsbelasting 1969).
If an individual is a resident of the Netherlands or deemed to be a resident of the Netherlands for Netherlands individual income tax purposes, income derived from the Notes and gains realised upon the redemption, settlement or disposal of the Notes are taxable at the progressive rates (at up to a maximum rate of 49.50%) under the Netherlands Income Tax Act 2001 (Wet inkomstenbelasting 2001), if:
(i) the individual is an entrepreneur (ondernemer) and has an enterprise to which the Notes are attributable or the individual has, other than as a shareholder, a co-entitlement to the net worth of an enterprise (medegerechtigde), to which enterprise the Notes are attributable; or
(ii) such income or gains qualify as income from miscellaneous activities (resultaat uit overige werkzaamheden), which includes activities with respect to the Notes that exceed regular, active portfolio management (normaal, actief vermogensbeheer).
If neither condition (i) nor condition (ii) above applies, an individual that holds the Notes, must determine taxable income with regard to the Notes on the basis of a deemed return on income from savings and investments (sparen en beleggen), rather than on the basis of income actually received or gains actually realised. This deemed return on income from savings and investments is fixed at a percentage of the individual's yield basis (rendementsgrondslag) at the beginning of the calendar year (1 January), insofar as the individual's yield basis exceeds a certain threshold (heffingvrij vermogen). The individual's yield basis is determined as the fair market value of certain qualifying assets held by the individual less the fair market value of certain qualifying liabilities on 1 January. The fair market value of the Notes will be included as an asset in the individual's yield basis. The deemed return percentage to be applied to the yield basis increases progressively depending on the amount of the yield basis. The deemed return on income from savings and investments is taxed at a rate of 31% (2021 rate).
For 2021, the deemed return ranges from 1.90 % to 5.69 % of the value of the individual's net assets as at the beginning of the relevant fiscal year (including the Notes). The applicable rates will be updated annually on the basis of historic market yields.
243 Non-residents of the Netherlands
If a person is neither a resident of the Netherlands nor is deemed to be a resident of the Netherlands for Netherlands corporate or individual income tax purposes, such person is not liable to Netherlands income tax in respect of income derived from the Notes and gains realised upon the settlement, redemption or disposal of the Notes, unless:
(i) the person is not an individual and such person (a) has an enterprise that is, in whole or in part, carried on through a permanent establishment or a permanent representative in the Netherlands to which permanent establishment or permanent representative the Notes are attributable, or (b) is, other than by way of securities, entitled to a share in the profits of an enterprise or a co-entitlement to the net worth of an enterprise, which is effectively managed in the Netherlands and to which enterprise the Notes are attributable; or
(ii) the person is an individual and such individual (a) has an enterprise or an interest in an enterprise that is, in whole or in part, carried on through a permanent establishment or a permanent representative in the Netherlands to which permanent establishment or permanent representative the Notes are attributable, or (b) realises income or gains with respect to the Notes that qualify as income from miscellaneous activities in the Netherlands which include activities with respect to the Notes that exceed regular, active portfolio management (normaal, actief vermogensbeheer), or (c) is, other than by way of securities, entitled to a share in the profits of an enterprise which is effectively managed in the Netherlands and to which enterprise the Notes attributable.
Gift and Inheritance Tax
Netherlands gift or inheritance tax will not be levied on the occasion of the transfer of the Notes by way of gift by, or on the death of, a holder of Notes, unless:
a. the holder of Notes is, or is deemed to be, resident in the Netherlands for the purpose of the relevant provisions; or
b. the transfer is construed as an inheritance or gift made by, or on behalf of, a person who, at the time of the gift or death, is or is deemed to be resident in the Netherlands for the purpose of the relevant provisions.
Value Added Tax
In general, no value added tax will arise in respect of payments in consideration for the issue of the Notes or in respect of a cash payment made under the Notes, or in respect of a transfer of Notes.
Other Taxes and Duties
No Netherlands registration tax, customs duty, transfer tax, stamp duty or any other similar documentary tax or duty will be payable in the Netherlands by a holder in respect of or in connection with the subscription, issue, placement, allotment, delivery or transfer of the Notes.
Foreign Account Tax Compliance Act
Pursuant to certain provisions of the U.S. Internal Revenue Code of 1986, commonly known as FATCA, a "foreign financial institution" may be required to withhold on certain payments it makes ("foreign passthru payments") to persons that fail to meet certain certification, reporting, or related requirements. A number of jurisdictions (including Germany and the Netherlands) have entered into, or have agreed in substance to, intergovernmental agreements with the United States to implement FATCA ("IGAs"), which modify the way in which FATCA applies in their jurisdictions. Certain aspects of the application of the FATCA provisions and IGAs to instruments such as the Notes, including whether withholding would ever be required pursuant to FATCA or an IGA with respect to payments on instruments such as the Notes, are uncertain and may be subject to change. Even if withholding would be required pursuant to FATCA or an IGA with respect to payments on instruments such as the Notes, such withholding would not apply prior to the date that is two years after the date of publication of final regulations with the U.S. Federal Register defining the term "foreign passthru payments". To date such final regulations have not yet been published. Noteholders should consult their own tax advisors regarding how these rules may apply to their investment in the
244 Notes. In the event any withholding would be required pursuant to FATCA or an IGA with respect to payments on the Notes, the Issuer will not pay any additional amounts as a result of the withholding.
245 SUBSCRIPTION AND SALE OF THE NOTES
Subscription by the Joint Bookrunners
Citigroup Global Markets Europe AG, Commerzbank Aktiengesellschaft, HSBC Continental Europe, Banco Santander, S.A, SMBC Nikko Capital Markets Europe GmbH and UniCredit Bank AG (the "Joint Bookrunners") will enter into a subscription agreement with the Issuer and the Guarantor on or about 18 January 2021 (the "Subscription Agreement") in which they agree to subscribe for the Notes on a firm commitment basis. The Joint Bookrunners will be entitled, under certain circumstances, to terminate the Subscription Agreement. In such event, no Notes will be delivered to investors.
The Issuer and the Guarantor will agree in the Subscription Agreement to indemnify the Joint Bookrunners against certain liabilities in connection with the offer and sale of the Notes. The Issuer has furthermore agreed to pay certain fees to the Joint Bookrunners in connection with the offering, placement and subscription of the Notes and to reimburse the Joint Bookrunners for certain expenses incurred in connection with the issue of the Notes.
The Joint Bookrunners or their respective affiliates have provided from time to time, and expect to provide in the future, investment services to the Issuer, the Guarantor and their respective affiliates, for which the Joint Bookrunners or their respective affiliates have received or will receive customary fees and commissions. In addition, the Joint Bookrunners or their respective affiliates may be involved in financing initiatives relating to the Issuer, the Guarantor or their respective affiliates. Furthermore, in the ordinary course of their business activities, the Joint Bookrunners and their respective affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers. Such investments and securities activities may involve securities and/or instruments of the Issuer, the Guarantor or their respective affiliates. Certain of the Joint Bookrunners or their respective affiliates that have a lending relationship with the Issuer, the Guarantor and/or their respective affiliates, routinely hedge their credit exposure to the Issuer and/or the Guarantor consistent with their customary risk management policies. Typically, such Joint Bookrunners and their respective affiliates would hedge such exposure by entering into transactions which consist of either the purchase of credit default swaps or the creation of short positions in the Issuer’s or the Guarantor’s or their respective affiliates’ securities, including potentially the Notes offered hereby. Any such short positions could adversely affect future trading prices of the Notes offered hereby. The Joint Bookrunners and their respective affiliates may also make investment recommendations and/or publish or express independent research views in respect of such securities or financial instruments and may hold, or recommend to clients that they acquire, long and/or short positions in such securities and instruments.
Selling Restrictions
General
Each Joint Bookrunner has acknowledged that other than explicitly mentioned in this Prospectus no action is taken or will be taken by the Issuer in any jurisdiction that would permit a public offering of the Notes, or possession or distribution of any offering material relating to them, in any jurisdiction where action for that purpose is required.
Each Joint Bookrunner has represented and agreed that it will comply with all applicable laws and regulations in each jurisdiction in which it purchases, offers, sells or delivers Notes or has in its possession or distributes any offering material relating to them.
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 or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the Securities Act. Terms used in this paragraph have the meanings given to them by Regulation S under the Securities Act ("Regulation S").
The Notes are subject to U.S. tax law requirements and may not be offered, sold or delivered within the United States or its possessions or to a United States person, except in certain transactions permitted by the U.S. tax regulations.
246 Terms used in this paragraph have the meanings given to them by the U.S. Internal Revenue Code of 1986 and regulations thereunder.
Each Joint Bookrunner has represented and agreed that, except as permitted by the Subscription Agreement, it has not offered, sold or delivered and will not offer, sell or deliver the Notes (i) as part of their distribution at any time or (ii) otherwise until 40 days after the later of the commencement of the offering and the Issue Date, within the United States or to, or for the account or benefit of, U.S. persons, and it will have sent to each dealer to which it sells Notes during the distribution compliance period a confirmation or other notice setting forth the restrictions on offers and sales of the Notes within the United States or to, or for the account or benefit of, U.S. persons. Terms used in this paragraph have the meanings given to them by Regulation S.
In addition, until 40 days after the commencement of the offering of the Notes, an offer or sale of Notes within the United States by a dealer that is not participating in the offering may violate the registration requirements of the Securities Act.
United Kingdom of Great Britain and Northern Ireland
Each Joint Bookrunner has represented and agreed that:
(a) it has only communicated or caused to be communicated and will only communicate or cause to be communicated any invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000 (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
(b) 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.
Prohibition of Sales to UK Retail Investors
Each Joint Bookrunner has severally represented, warranted and undertaken with the Issuer and the Guarantor and each other Joint Bookrunner that it has not offered, sold or otherwise made available and will not offer, sell or otherwise make available any Notes to any retail investor in the United Kingdom. For the purposes of this provision the expression "retail investor" means a person who is one (or more) of the following:
(a) a retail client, as defined in point (8) of Article 2 of Regulation (EU) No 2017/565 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 ("EUWA"); or
(b) a customer within the meaning of the provisions of the FSMA and any rules or regulations made under the FSMA to implement Directive (EU) 2016/97, where that customer would not qualify as a professional client, as defined in point (8) of Article 2(1) of Regulation (EU) No 600/2014 as it forms part of domestic law by virtue of the EUWA.
The expression an "offer" includes 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 for the Notes.
Prohibition of Sales to EEA Retail Investors
Each Joint Bookrunner has severally represented, warranted and undertaken with the Issuer and the Guarantor and each other Joint Bookrunner that it has not offered, sold or otherwise made available and will not offer, sell or otherwise make available any Notes to any retail investor in the European Economic Area. For the purposes of this provision, the expression "retail investor" means a person who is one (or more) of the following:
(a) a retail client as defined in point (11) of Article 4(1) of MiFID II; or
(b) a customer within the meaning of Directive 2016/97/EU, where that customer would not qualify as professional client as defined in point (10) of Article 4(1) of MiFID II.
247 Singapore
Each Joint Bookrunner has acknowledged that this Prospectus has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, each Joint Bookrunner has represented and agreed that it has not offered or sold any Notes or caused the Notes to be made the subject of an invitation for subscription or purchase and will not offer or sell any Notes or cause the Notes to be made the subject of an invitation for subscription or purchase, and has not circulated or distributed, nor will it circulate or distribute, this Prospectus or any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the Notes, whether directly or indirectly, to any person in Singapore other than (i) to an institutional investor (as defined in Section 4A of the Securities and Futures Act (Chapter 289) of Singapore, as modified or amended from time to time (the "SFA")) pursuant to Section 274 of the SFA, (ii) to a relevant person (as defined in Section 275(2) of the SFA) pursuant to Section 275(1) of the SFA, or any person pursuant to Section 275(1A) of the SFA, and in accordance with the conditions specified in Section 275 of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.
Where Notes are subscribed or purchased under Section 275 of the SFA by a relevant person which is:
(a) a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor; or
(b) a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary of the trust is an individual who is an accredited investor, securities or securities-based derivatives contracts (each term as defined in Section 2(1) of the SFA) of that corporation or the beneficiaries’ rights and interest (howsoever described) in that trust shall not be transferred within six months after that corporation or that trust has acquired the Notes pursuant to an offer made under Section 275 of the SFA except:
(i) to an institutional investor or to a relevant person, or to any person arising from an offer referred to in Section 275(1A) or Section 276(4)(i)(B) of the SFA;
(ii) where no consideration is or will be given for the transfer;
(iii) where the transfer is by operation of law;
(iv) as specified in Section 276(7) of the SFA; or
(v) as specified in Regulation 37A of the Securities and Futures (Offers of Investments) (Securities and Securities-based Derivatives Contracts) Regulations 2018.
Switzerland
This Prospectus is not intended to constitute an offer or solicitation to purchase or invest in any Notes. Notes may not be publicly offered, directly or indirectly, in Switzerland within the meaning of the Swiss Financial Services Act ("FinSA") and may only be offered in Switzerland pursuant to an exception from the prospectus requirements under the FinSA. No application has been or will be made to admit the Notes to trading on any trading venue (SIX Swiss Exchange Ltd. or on any other exchange or any multilateral trading facility) in Switzerland.
Neither this Prospectus, nor any other offering or marketing material relating to the Notes constitutes a prospectus pursuant to the FinSA or pursuant to the Swiss Code of Obligations (as in effect immediately prior to the entry into force of the FinSA) or pursuant to the listing rules of the SIX Swiss Exchange Ltd. or any other trading venue in Switzerland.
Neither this Prospectus, nor any other offering or marketing material relating to the Notes may be publicly distributed or otherwise made publicly available in Switzerland. No "Key Information Document" according to the FinSA or any other equivalent document under the FinSA has been prepared in relation to the Notes.
248 Hongkong
Each Joint Bookrunner has represented and agreed that:
(a) it has not offered or sold and will not offer or sell in Hong Kong, by means of any document, any Securities other than (a) to "professional investors" as defined in the Securities and Futures Ordinance (Cap. 571) of Hong Kong (the "SFO") and any rules made under the SFO; or (b) in other circumstances which do not result in the document being a "prospectus" as defined in the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong (the "C(VUMP)O") or which do not constitute an offer to the public within the meaning of the C(WUMP)O; and
(b) it has not issued or had in its possession for the purposes of issue, and will not issue or have in its possession for the purposes of issue, whether in Hong Kong or elsewhere, any advertisement, invitation or document relating to the Securities, which is directed at, or the contents of which are likely to be accessed or read by, the public of Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to Securities which are or are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" as defined in the SFO and any rules made under the SFO.
Canada
The Notes may be sold only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Any resale of the Notes must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable securities laws.
Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this Prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser’s province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser’s province or territory for particulars of these rights or consult with a legal advisor.
249 GENERAL INFORMATION
1. Interest of Natural and Legal Persons involved in the Issue/Offer: Certain of the Joint Bookrunners and their affiliates may be customers of, borrowers from or creditors of the Issuer, the Guarantor and/or their respective affiliates. In addition, certain Joint Bookrunners and their affiliates have engaged, and may in the future engage, in investment banking and/or commercial banking transactions with, and may perform services for the Issuer, the Guarantor and/or their respective affiliates in the ordinary course of business.
2. Authorisations: The creation and issue of the Notes has been authorised by a resolution of the sole managing director of the Issuer on 5 January 2021 and by a resolution of the sole shareholder of the Issuer on 7 January 2021.
The creation and issue of the Notes and the granting of the Subordinated Guarantees has been authorised by a resolution of the Management Board (Vorstand) of the Guarantor on 15 December 2020 and by a resolution of the shareholders of the Guarantor on 7 January 2021.
3. Legal Entity Identifier:
The legal entity identifier (LEI) of Wintershall Dea Finance 2 B.V. is: 529900DV88FUQZSVVL48.
The legal entity identifier (LEI) of Wintershall Dea GmbH is: 529900PP4O3OCBMO9C52.
4. Expenses for Admission to Trading: The total expenses related to the admission to trading of the Notes are expected to amount to approximately € 16,000.
5. Clearing System: The Notes have been accepted for clearing and settlement through Euroclear Bank SA/NV, 1 Boulevard du Roi Albert II, 1210 Brussels, Belgium and Clearstream Banking, S.A., 42 Avenue JF Kennedy, L-1855 Luxembourg.
The NC2026 Notes have the following securities codes:
ISIN: XS2286041517 Common Code: 228604151 German Securities Code (WKN): A287SZ
The NC2029 Notes have the following securities codes:
ISIN: XS2286041947 Common Code: 228604194 German Securities Code (WKN): A287SY
6. Eurosystem Eligibility: The Notes are intended to be held in a manner which would allow Eurosystem eligibility.
This does not necessarily mean that the Notes will be recognised as eligible collateral for Eurosystem monetary policy and intraday credit operations by the Eurosystem either upon issue or at any or all times during their life. Such recognition will depend upon the European Central Bank being satisfied that the Eurosystem eligibility criteria have been met.
7. Listing and Admission to Trading: Application has been made for the Notes to be admitted to the official list of the Luxembourg Stock Exchange and to be admitted to trading on the Euro MTF market of the Luxembourg Stock Exchange. The Euro MTF market of the Luxembourg Stock Exchange is not a regulated market for the purposes of MIFID II.
8. Documents on Display: For so long as any Note is outstanding, electronic versions of the following documents are available for viewing in electronic form (free of charge) at the website of the Guarantor (https://wintershalldea.com/en):
(a) the Articles of Incorporation (Satzung) of the Issuer and the Guarantor; and
(b) the documents specified in the section "Documents incorporated by reference" below.
250 Copies of this Prospectus are available free of charge, during usual business hours on any weekday (Saturdays and public holidays excepted), at the offices of the Guarantor and will also be published on the website of the Luxembourg Stock Exchange (www.bourse.lu).
9. Third Party Information: With respect to any information included herein and specified to be sourced from a third party (i) the Issuer confirms that any such information has been accurately reproduced and as far as the Issuer is aware and is able to ascertain from information available to it from such third party, no facts have been omitted the omission of which would render the reproduced information inaccurate or misleading and (ii) neither the Issuer nor any Joint Bookrunner has independently verified any such information and neither the Issuer nor any Joint Bookrunner accepts any responsibility for the accuracy thereof.
10. Yield: For the investors, the yield of the NC2026 Notes until the NC2026 First Reset Date is 2.500 per cent. per annum, calculated on the basis of the Issue Price.
For the investors, the yield of the NC2029 Notes until the NC2029 First Reset Date is 3.000 per cent. per annum, calculated on the basis of the Issue Price.
Such yields are calculated in accordance with the ICMA (International Capital Markets Association) Method. The ICMA method determines the effective interest rate on notes by taking into account accrued interest on a daily basis. The yield of the Notes for the Reset Periods after the respective First Reset Dates cannot be determined as of the date of this Prospectus.
11. Ratings13:
The Notes are expected to be rated as follows:
• "Ba1"14 by Moody’s Investors Service.
• "BB+"15 by Fitch Ratings.
A credit rating is not a recommendation to buy, sell or hold securities and may be revised or withdrawn by the respective rating agency at any time.
13 Credit ratings included or referred to in this Prospectus have been issued by Moody’s Investors Service and Fitch Ratings, each of which is established in the European Union and registered under Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies, as amended (the "CRA Regulation"). A list of credit rating agencies registered under the CRA Regulation is available for viewing at https://www.esma.europa.eu/supervision/credit-rating-agencies/risk. 14 Moody’s Investors Service defines "Ba1" as follows: "Obligations rated Ba are judged to be speculative and are subject to substantial credit risk. Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category." 15 Fitch Ratings defines "BB+" as follows: "BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time; however, business or financial flexibility exists that supports the servicing of financial commitments. Within rating categories, Fitch may use modifiers. The modifiers "+" or "-" may be appended to a rating to denote relative status within major rating categories."
251 DOCUMENTS INCORPORATED BY REFERENCE
The pages specified below of the following documents, which have previously been published or are published simultaneously with this Prospectus and which have been filed with the Luxembourg Stock Exchange are incorporated by reference into this Prospectus:
(i) the audited DEA Deutsche Erdoel AG Group Financial Statements 2018;
(ii) the audited Wintershall Holding GmbH Group Financial Statements 2018;
(iii) the audited Wintershall Dea Deutschland AG (formerly DEA Deutsche Erdoel AG) Group Financial Statements 30 April 2019;
(iv) the audited Wintershall Dea GmbH (formerly Wintershall Holding GmbH) Group Financial Statements 30 April 201916;
(v) the Wintershall Dea GmbH Annual Report 2019, including the audited Group Financial Statements 31 December 2019; and
(vi) the unaudited Wintershall Dea GmbH Q3 2020 Group Financial Statements.
Any information not incorporated by reference into this Prospectus but contained in one of the documents mentioned as source documents in the cross-reference list below is either not relevant for the investor or covered in another part of this Prospectus.
(i) Extracted from: DEA Deutsche Erdoel AG Group Financial Statements 2018:
• Consolidated Income Statement ...... page 33 • Consolidated Statement of Comprehensive Income ...... page 34 • Consolidated Balance Sheet ...... page 35 • Consolidated Cash Flow Statement ...... page 36 • Consolidated Statement of Changes in Equity...... page 37 • Notes ...... pages 38-91 • Independent Auditor’s Report ...... pages 93-96
(ii) Extracted from: Wintershall Holding GmbH Group Financial Statements 2018:
• Consolidated Statement of Financial Position ...... page 5 • Consolidated Income Statement ...... page 6 • Statement of Comprehensive Income ...... page 7 • Development of Income and Expenses recognised directly in Equity page 7 • Consolidated Statement of Cash Flows ...... page 8 • Consolidated Statement of Changes in Equity...... page 9 • Group Notes...... pages 10-80 • Audit Opinion of the Independent Auditor ...... pages 102-106
16 Restated according to IAS 8.41 et seq. by restating the comparative information for the previous period presented in the Group Financial Statements 31 December 2019 included in the Wintershall Dea GmbH Annual Report 2019. The adjustment relates to the calculation method and disclosure of deferred taxes in Argentina and was carried out retrospectively impacting the consolidated balance sheets presented as of 30 April 2019 and 1 January 2019 (please refer to Notes 1 and 17 of the Wintershall Dea GmbH Group Financial Statements 2019).
252 (iii) Extracted from: Wintershall Dea Deutschland AG (formerly DEA Deutsche Erdoel AG) Group Financial Statements 30 April 2019:
• Consolidated Income Statement ...... page 30 • Consolidated Statement of Comprehensive Income ...... page 31 • Consolidated Balance Sheet ...... page 32 • Consolidated Cash Flow Statement ...... page 33 • Consolidated Statement of Changes in Equity...... page 34 • Notes ...... pages 35-87 • Independent Auditor’s Report ...... pages 88-91
(iv) Extracted from: Wintershall Dea GmbH (formerly Wintershall Holding GmbH) Group Financial Statements 30 April 2019:
• Consolidated Statement of Financial Position ...... page 4 • Consolidated Income Statement ...... page 5 • Statement of Comprehensive Income ...... page 6 • Development of Income and Expenses recognised directly in Equity page 6 • Consolidated Cash Flow Statement ...... page 7 • Consolidated Statement of Changes in Equity...... page 8 • Group Notes...... pages 9-74 • Independent Auditor’s Report ...... pages 103-106
(v) Extracted from: Wintershall Dea GmbH Annual Report 2019:
• Consolidated Statement of Income ...... page 128 • Consolidated Statement of Comprehensive Income ...... page 129 • Consolidated balance sheet ...... pages 130-131 • Consolidated Statement of Changes in Equity...... page 132 • Consolidated Statement of Cash Flows ...... page 133 • Notes to the consolidated financial statement ...... pages 134-217 • Independent Auditor’s Report ...... pages 220-223
(vi) Extracted from: Wintershall Dea GmbH Q3 2020 Consolidated Interim Financial Statements
• Consolidated Statement of Income ...... page 2 • Consolidated Statement of Comprehensive Income ...... page 3 • Consolidated Balance Sheet ...... pages 4-5 • Consolidated Statement of Changes in Equity...... page 6 • Consolidated Statement of Cash Flows ...... page 7 • Notes to the Condensed Consolidated Financial Statements ...... pages 8-25
Copies of documents incorporated by reference in this Prospectus may be obtained (without charge) from the website of the Guarantor (https://wintershalldea.com/en) and the website of the Luxembourg Stock Exchange (www.bourse.lu).
253
Issuer
Wintershall Dea Finance 2 B.V. Bogaardplein 47 2284 DP Rijswijk The Netherlands
Guarantor
Wintershall Dea GmbH Friedrich-Ebert-Straße 160, 34119 Kassel Germany
Principal Paying Agent and Calculation Agent
Citibank Europe PLC 1 North Wall Quay Dublin 1 Ireland
Joint Bookrunners Citigroup Global Markets Europe AG Commerzbank Aktiengesellschaft Reuterweg 16 Kaiserstraße 16 (Kaiserplatz) 60323 Frankfurt am Main 60311 Frankfurt am Main Germany Germany
HSBC Continental Europe Banco Santander, S.A. 38, avenue Kléber Ciudad Grupo Santander 75116 Paris Avenida de Cantabria s/n France Edificio Encinar, planta baja 28660, Boadilla del Monte Madrid Spain SMBC Nikko Capital Markets Europe GmbH UniCredit Bank AG Neue Mainzer Straße 52-58 Arabellastrasse 12 60311 Frankfurt 81925 Munich Germany Germany Auditors to the Guarantor
KPMG AG Wirtschaftsprüfungsgesellschaft The Squaire Am Flughafen 60549 Frankfurt am Main Germany
254 Legal Advisers
To the Issuer and the Guarantor as to German law To the Issuer and the Guarantor as to Dutch law
Linklaters LLP Linklaters LLP Taunusanlage 8 Zuidplein 180 60329 Frankfurt am Main 1077 XV Amsterdam Germany The Netherlands To the Joint Bookrunners
Freshfields Bruckhaus Deringer Rechtsanwälte Steuerberater PartG mbB Bockenheimer Anlage 44 60322 Frankfurt am Main Germany
A43329545